Cash loans explained

What is a cash loan?

It’s a line of credit that gives you an injection of cash, and is normally paid straight in to your bank account or given face to face as a cash lump sum. Cash loans are normally unsecured, meaning you don’t have to guarantee repayment against an asset like your home or car. Each cash loan provider has their own terms, fees and application methods so if you do need to apply for a loan, make sure you research the type that’s best for you first.

There are many types of cash loan available to you. These include more traditional bank loans as well as payday loans and guarantor loans. There are also short-term loans from lenders like us, an award winning digital finance company whose mission is to help people with occasional and short-term cash flow needs. Find out more about us here.

How do cash loans work?

Simple, really. You ask to borrow a certain amount then the cash lender assesses your application and makes a decision whether to lend to you or not. If approved, you’ll then pay it back in instalments or as one lump sum, plus interest costs and any fees they charge. Generally speaking, banks tend to offer higher loan amounts than other lenders, with longer repayment periods (6-24 months, typically).

Some cash loan companies will only offer you a fixed sum that you might not actually need. The repayment date can also be fixed by the lender and connected to your payday. In some cases, you may also need to repay the loan by visiting a branch or transferring money online.

A short-term loan from wonga.com is different. Using the sliders on our homepage you choose the exact amount you want to borrow (up to £400 for new customers) and for exactly how long (up to 30 days). This puts you in control of your borrowing and gives you flexibility to suit your situation. When it comes to paying us back, you don’t need to lift a finger. We’ll automatically collect the agreed loan amount from the debit card you registered with us on the day you’ve chosen to repay. You can find out more about how we work here.

How do I apply?

Banks and high street lenders will sometimes set up a face to face meeting before deciding whether to give you a loan. Some loan companies ask for your paperwork or request a phone call after you’ve applied via their website. These types of loan companies can take a few days to process your application so aren’t ideal if you need really fast cash. Others, like us, have an application process that’s purely online.

We were the first company in the world to fully automate the lending process. Our innovative decision making technology allows us to assess applications quickly and efficiently. This doesn’t mean we don’t take our responsibilities seriously. We do, but our systems allow us to make responsible decisions quickly. The application process is completely online so there’s no paperwork, meetings or phone calls. It only takes a few minutes to apply, and we’ll usually give you a decision onscreen straight away. As well as our main website wonga.com, you can apply on the move using our mobile site or iPhone and Android apps. You can also apply through our Facebook page. Our service is available 24/7, so you can apply for a loan or manage your account anytime day or night.

When will I get my money?

This can vary greatly. Banks and other high street loan companies can take a few days to process your application and loan payment. These days online cash loan companies offer same day cash, so you could have the money quickly if your application meets their criteria.

If you’re approved for a wonga.com loan you’ll usually get the cash really, really fast. We’ll usually send it to your bank account within five minutes of approval, offering you access to super-fast cash. There’s no better loan company than wonga.com if you want a few quick quid.

How much does it cost?

Different lenders will charge different interest rates so the full cost will depend on your total loan amount, repayment timeframe and rate of interest. Short-term unsecured loans tend to have a higher rate of interest than other forms of credit. Some lenders also charge set up or processing fees, as well as other types of fee. It’s a good idea to fully research the true cost of a loan first, before you apply.

We pride ourselves on being transparent about the features of our loan service. That’s why we give you the true cost of a loan upfront before you apply, including any interest and fees. Unlike most cash loan providers, we actually want you to repay early. You can repay early anytime with no catches or hidden fees. In fact, you’ll even save money because we only charge interest for the days you actually borrow from us. By law, we’re required to show you the Representative APR of 4214%. In practice, we charge 1% (fixed) interest on the amount you borrow per day. Click here to find out more about how we charge interest and how the APR works.

Below is more information about the services offered by cash loan companies.

What if I have problems repaying?

Whatever type of loan you choose, you will need to pay it back on time and in full to avoid late payment fees and a possible impact on your credit record. When applying for an unsecured loan, it’s important to know what the default fees are.

If you’re struggling to repay a wonga.com loan for any unexpected reason, you’ll find some useful information here. This is the last thing we want to happen so we’ll work with you to try and find an alternative repayment option. Because of our commitment to responsible lending, we have industry-leading arrears rates, world class customer satisfaction and a net promoter score (NPS) which is better than Apple’s. Our call centre is open 24/7 too, so we’re always on hand to help.

More useful tips and questions about our service can be found in our help section.