One of the biggest names in payday lending, Wonga has announced it is entering administration and isn't offering loans to new customers. If you're considering a payday loan, there are alternative options.
As of August 2018, Wonga has announced it is entering administration and is no longer issuing loans to new UK customers. This follows an influx of compensation claims from people who took out a loan before 2014. The payday lender says current customers should continue to make repayments, and “top-ups” won’t be available. For alternatives to Wonga, see our comparison table of payday lenders.
While high-cost short-term borrowing isn’t for the faint-hearted, it can provide the quick, temporary cash you need when an unexpected cash shortfall pops up. Wonga has three different types of loan for existing customers – allowing them to borrow between £50 and £600, over terms from one day to six months.
Key features of a Wonga loan:
Loans of £50-£600. The amount depends on your personal circumstances.
Borrow over 1 day to 6 months. Three loan types offer different repayment periods.
Simple application. Wonga is no longer accepting applications as of August 2018.
Total transparency. All costs are shown upfront.
Quick payments. Once approved loans are sent within 5 minutes.
Repay early at any time. This could save you money in interest.
Please note: high-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
How do Wonga’s loans hold up against the competition?
Table: promoted deals, sorted by total payable
As well as comparing short-term loans with other types of credit, before you apply for a loan, it’s a good idea to shop around and compare a range of lenders. You can use the tool below to get an idea of how much the loan that you have in mind might cost.
How much money do you need to borrow?
How long do you need to borrow over?
Important information: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
We compare payday/short-term loans from
Is high-cost, short-term borrowing a good idea?
Payday loans, and high-cost, short-term credit are a very expensive method of borrowing and should only be considered as a last resort. They may not solve your money problems, and are not a good idea for borrowing over longer periods, or for sustained borrowing.
Before you apply for a payday or short-term loan, make sure you’ve considered other options. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. If you’re struggling to pay a bill, then why not talk to your electricity, gas, phone or water provider to see if you can work out a payment plan? Read more about alternatives to payday loans at moneyadviceservice.org.uk.
How does a short term loan from Wonga work?
Wonga loans were designed for people who felt they were not well served by mainstream finance.
Like most others payday credit lenders, Wonga uses a continuous payment authority (CPA) to take payments automatically on the repayment date a customer chose during the application. Customers have the option to repay some or all of the loan early. Doing this will save money on interest.
What is a continuous payment authority (CPA)?
A CPA is a recurring payment in which you give a company permission to withdraw money from your account on a regular basis.
CPA differs from direct debit because it gives the company being paid the ability to withdraw money from your account whenever it wishes, and to take payments of different amounts without consulting you. Most payday loan companies will use a CPA to collect your repayments, however you can cancel this at any point by either consulting with your provider or your bank.
What are the different repayment periods?
Short term Loan. This simple option can provide you with £50-£400 for up to 35 days. You’ll pay this back at the end of the term in one lump sum.
3 month Flexi Loan. Borrow £150-£500 over 3 months and pay back in 3 monthly instalments. You’ll be charged daily interest of 0.8%.
6 month Flexi Loan. Borrow £200-£600 over 6 months. You’ll repay in 6 monthly instalments on a date that works best for you. You’ll be charged daily interest of 0.75%.
What are the eligibility requirements?
18 years or older
Hold a UK bank or building society account with a valid debit card
Have a working mobile phone & email address
Did you know?
In 2015 the Financial Conduct authority (FCA) capped interest and fees on all high-cost short-term credit loans at 0.8% per day.
It also capped all default charges at £15 and the total cost (interest, fees) of loans at 100% of the original sum. This means you’ll never have to pay more than double the amount borrowed.
Additional borrowing options
Following its announcement in August 2018, Wonga will not allow customers to top up or extend their loans.
Frequently asked questions
Wonga is currently not accepting any new applications for loans.
Wonga isn’t taking any new applications.
You have the right to cancel your loan within 14 days of receiving it. If you do so you’ll need to immediately pay back your full loan and any interest accrued.
No. Wonga isn’t taking any further loan applications.
Wonga like other lenders uses credit reference agencies, so defaulting on your loan could make it harder to secure credit in the future.
You can repay your loan early. If you’re able to pay some or all of your loan back early you’ll reduce the interest you have to pay.
If you are experiencing any issues, do not hesitate to contact Wonga either by email: email@example.com, or by phone: 0207 138 8330. Alternatively, if you are still dissatisfied, you can contact the Financial Ombudsman to deal with your case.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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