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.
Wonga short-term loans review
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:
How do Wonga’s loans hold up against the competition?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.
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?
- UK resident
- 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
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