Payday loans sweeping the UK

Most working people have the odd month when pay day feels a long way off, usually when something unexpected happens or several expenses crop up at the same time. Payday loans have been a popular solution for some short term wonga in America - and now it’s easy to find lenders online in the UK.

Is super-fast cash a good thing?

Pay day loans or cash advances generally involve getting relatively small sums of money very fast. Speed of application, decision and cash transfer are often highlighted by lenders, which makes sense considering they are intended for use when you need urgent funds. The money is borrowed until your next payday and fees tend to be high, though not as eye-watering as some bank overdraft charges on the UK high street.

Some people think that offering loans this fast, often on the same day and sometimes within an hour of approval, is dangerous. They argue that pay day loans lure people in with the promise of easy money, but can trap people in a cycle of debt.

How is Wonga different to a payday loan?

Wonga.com is a short term lender with a difference, using sophisticated and automated technology to ensure it only helps appropriate people. They also offer applicants a unique level of flexibility. You aren’t forced to borrow until pay day and simple sliders let you choose how much cash you want and how many days you need it for.

A Wonga loan can be taken until payday, but it could be as short term as 24 hours and early repayment is available at all times. There are no nasty surprises and no endless rolling of your balance from month to month – a common criticism of pay day loans. In fact flexible Wonga loans are available from one day to a month and from £1 to £400 for first time visitors. Customers using the service responsibly over time may be able to access up to £1,000, based on trust rating system.

The length of the loan affects the cost and once you are happy with everything you fill out an online form before receiving an instant decision. Because everything is automated and takes just minutes, Wonga makes a wide range of fast checks with publicly available data, including your credit status. They judge your ability to comfortably afford repayment of their loan, however, rather than trying to predict your reliability over a number of years, like a bank might aim to do.

Wonga has won a number of major awards for its service, which represents a new approach to pay day style lending in the UK. Short term loans are not the cheapest solution to a cash crunch and should only be used occasionally, but if you need some help fast and only want to borrow for a few days or weeks, then visiting Wonga is a smart move.