About APR
A common way to compare the cost of personal loans and credit cards is looking at the APR, or annual percentage rate. Our APR would be very high for a traditional loan taken over several years. But we are not a traditional lender. APR is an annual measure and our short-term cash advances are for only between five days and a month.
You can see excalty how much the loan will cost before you apply. That's because we believe in giving you all the facts and letting you decide what's good value! You are welcome to compare APR, but it's a bit like trying to work out if catching a black cab into town is worth the expense when being told how much it would cost to do every day.
It’s not exactly the most useful way to assess the cost of a short-term solution is it?
You might also be surprised by the fees that banks and credit card providers charge if they had to express them in terms of an APR! Penalty fees are often hard to find and some high street banks currently charge £20 per day (for a maximum of ten days per month) for an unauthorised overdraft, you could get badly stung. The theoretical APR on going just £50 into the red for ten days would be 5,157%!
| £50 into the red for ten days with an unauthorised overdraft from Lloyds TSB | £50 cash advance from Wonga, over the same 10-day period | |
| Day 1 costs | £20 | 82.3p |
| Day 2 costs | £40 | £1.65 |
| Day 3 costs | £60 | £2.47 |
| Day 4 costs | £80 | £3.29 |
| Day 5 costs | £100 | £4.11 |
| Day 6 costs | £120 | £4.94 |
| Day 7 costs | £140 | £5.76 |
| Day 8 costs | £160 | £6.58 |
| Day 8 costs | £180 | £7.41 |
| Day 10 costs | £200 | £8.23 |
| TOTAL TO REPAY | £250 | £58.23 |
Convenience
Finally, remember we deliver instant money when you need it – cash on demand. There are cheaper ways to borrow, but none as quick or flexible as a Wonga cash advance. As in other areas of life, it can make complete sense to pay a premium for guaranteed speed and convenience in many circumstances.
