Once the biggest names in payday loans, Wonga collapsed into administration in August 2018. Plenty of similar companies do still exist, however, and we’ve put together a list of the online short term lenders that are stepping up to fill the void.
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.
Online lenders that offer similar loans to Wonga
The now-defunct Wonga was a loan company that became popular (especially with no-credit or bad-credit borrowers) between 2006 and 2012. It made its name offering high-APR payday and short term loans of up to £600 over repayment terms ranging from one day to six months.
The lender was frequently in the news and drew widespread criticism from all angles due to the high interest rates and fees it charged, and for irresponsible lending practices which later led to an unsustainable number of complaints and compensation claims (in the first half of 2018, around 12.6% of customers were submitting a complaint). This didn’t stop other firms jumping on the bandwagon, however.
Our loan calculator at the end of this page, allows you to compare the cost of payday or short-term loans from multiple lenders. Alternatively, above are some Wonga alternatives offering a quick decision and payout.
The FCA and sites like Wonga
The regulatory body that keeps companies such as Wonga in check is the Financial Conduct Authority (FCA). It was largely in response to media attention surrounding Wonga that the FCA introduced a set of rules for payday lenders in 2015. As well as tightening-up affordability checks, and limiting “roll-overs” of loans, lenders could no longer:
If you’re considering a short-term loan, you should make sure that the company you apply with is authorised and regulated by the FCA. It’s quick, easy and free to search the register.
Compare the cost of a short term loanAs 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 table below to get an idea of how much the loan that you have in mind might cost.
We compare payday/short-term loans from