Types of cash loans

 It’s not until you need a cash loan that you find out just how many possibilities there are to get one. There are numerous lenders in the market these days, but each one has its own stipulations and fees. It’s up to you as the consumer to find the best deal - but to do that, you need to understand the kind of loan you’re looking for. The most common kind of short-term cash loans are unsecured loans. This means that they’re not guaranteed by one of your personal assets, such as your home, as in a secured loan.

Whatever type of loan you choose , you will need to pay the loan back or suffer unwanted consequences - so when applying for an unsecured loan, it’s important to know what those penalties are.

While it’s not usually thought of as a cash loan, you can get quick cash by dipping into your bank overdraft. There’s usually a certain amount that you can withdraw at no interest, so you can replace that money any time you like. However, going past that interest-free limit will likely mean incurring a fee, plus higher than normal bank interest on what you owe until you pay it back.

What do I need to apply for a cash loan?

The criteria for applying for a cash loan varies greatly depending on which company you’re dealing with. That's why, you should always do your homework.

With Wonga, to qualify for application, you firstly need to be over 18 and living in the UK. You also need to have a bank account with an active debit card, as well as your own email address and mobile phone. At Wonga, we perform credit checks on all our applicants. We believe in responsible borrowing, and will only lend to people we think can afford to pay back their cash loans.

So, before you apply for your Wonga loan, figure out exactly how much you can afford to borrow. With your first Wonga loan, we give you the flexibility to borrow the amount you need between £1 and £400, giving you complete control over how much you want.

I’ve been approved, so what happens now?

Wonga sends the money to your bank account within 15 minutes, ready for you to use as soon as possible. So, the next step is up to you – make sure the amount you need to repay to Wonga is in your bank account by the date your loan is due. Wonga takes the payment directly from the debit card you nominated to allow us to take payment from , so that if something goes wrong, we have time to contact you before the payment will be considered late.

If you find that you’re able to repay your cash loan before you thought, that’s fantastic! We’ll be the first to help you celebrate getting back on your financial feet by not imposing any early repayment penalty charges. To pay your loan early, simply log in to your Wonga account, and settle your account.

When can I apply for a cash loan again?

How you use your Wonga cash loan is of course up to you, and you’re welcome to apply for another one at any time. However, Wonga loans aren’t meant to be used as a solution to long-term financial difficulty.

When you take out a Wonga cash loan and pay it back on time, you’ll start to build a positive trust rating with us. This is one of the factors we use to help determine who we want to lend money to, and it can mean that you’re allowed to borrow more money as your relationship with Wonga continues. The maximum amount we’ll let someone with a good trust rating borrow is £1,000.

We never guarantee that any loan will be approved, even with a repeat customer – we always look at the whole financial picture to make sure it’s a good choice for both us and you.

Try us out now and find out why so many of our customers say the service is reliable and easy to use.