When looking for a loan, it’s likely you already have the name of one or two lenders in mind. Wonga are a very well-known loan provider, thanks to their many TV ads over the years. But how can you be sure that Wonga is right for you?
In many cases, things such as loan terms, repayment plans, and interest rates can vary greatly from company to company. So, whilst you may be tempted to go for a loan provider you’ve heard of right away, shopping around for your short-term loan is the only way to ensure you find the best possible deal.
Moneypod is not a lender – we are a payday and short-term loan credit broker. What this means is we’re able to compare virtually all lenders in the UK for the type of loan you’re looking for, so you can find the perfect Wonga alternative.
In this article, we’ll be looking at the difference between a Wonga loan and a loan organised for you by Moneypod.
Wonga is a British payday loan company that is a household name here in the UK, and now have bases in Britain, Poland, Spain, and South Africa under their independent WDFC UK Limited name.
Founded back in 2006, Wonga was one of the early players to the online short-term credit game; offering consumers a flexible, digital solution to a physical high-street lender. When the industry took off, demand for easy-to-access online loans increased, establishing Wonga as a leader in the payday loans market.
Over the years, they have been awarded Alternative Lender Of The Year, Number 1 in the Tech Track 100, as well as the Digital Innovation Digital Entrepreneur Award, and continue to be one of the most well-known loan providers in the UK.
Wonga offer three types of loan depending on how much you need and how long you wish to borrow the money for. These are:
• Short Term Loans of one to thirty-five day terms, offering between £50 and £400.
• Three Month ‘Flexi’ Loans for between £150 and £500.
• Six Month ‘Flexi’ Loans from £200 up to £600.
Wonga calculate personal application limits based on your credit history and whether you’ve used their service in the past. The above limits are those applied to first-time lenders through Wonga, but if you have a track record of making your repayments on time, this could be extended.
Customers can apply online and receive their decision on screen right away. If accepted, the money will then appear in their account within just five minutes of approval.
When you set up a Wonga loan, you select the date on which your wish to make your repayments, which are then taken automatically on that date to avoid late fees.
Wonga assesses loan applications on an individual basis. They run full credit checks on all applicants to ensure they can definitely afford to repay the loan on time before they can be accepted.
Those with poor credit scores or bad credit histories will likely be unable to receive a loan through Wonga.
Wonga is a direct short-term loan provider, meaning you can apply to them directly for credit using their online application form.
If you are not accepted, then there will still be a full credit search on your file that can be seen by other lenders. Multiple credit searches against your name can reflect badly on your creditworthiness so it is never wise to apply to too many direct lenders.
Moneypod, on the other hand, is a credit broker. That means we carry out all the necessary credit checks you need once, then pass the information on to our lenders; so only one search will show up on your file.
You’ll get the money just as fast as if you were to apply directly, and you won’t be charged at all for using our service.
The Financial Conduct Authority are the regulatory body for all companies in the financial sector. That means lenders and credit brokers (like us!) must have FCA approval in order to operate legally.
Wonga is authorised and regulated by the FCA – under reference number 671454 – in order to protect you.
Recent laws brought in by the FCA have further protected consumers with price caps on short term credit, which mean:
• You can be charged no more than 0.8% a day (that is, a maximum of £24 per month for every £100 you borrow)
• Penalty fees cannot exceed £15 per day should you fall into arrears
• You will never be asked to pay more than the total amount of your original loan in interest fees and charges. So, if you borrow £200, you should never have to pay back more than £400 in total.
Both Moneypod and its parent company Nouveau Finance Limited are authorised and regulated by the Financial Conduct Authority under reference number 727348. As a credit broker, not a lender, we always ensure that the loan providers we work with are fully FCA approved and compliant.
With Moneypod, you can simply select how much you want to borrow, and the number of monthly repayments you wish to make. You can select anything from three months to two years depending on how much you want to pay each month.
You’ll then be asked to fill in your personal details, including your employment status, income and expenses, so we can be sure you can comfortably afford to repay your loan.
We then take your application and match you up with the most suitable FCA authorised UK lender that best suits your criteria. If approved by the lender, you will receive your funds the same day.
We compare our panel of more than forty of the top lenders in the country to find you the best loan rate possible, with only one credit check.
Working closely with our loan providers means we know exactly what they’ll be looking for, so we can pair you up with the lender most likely to approve your application.
That means you have a much higher chance of being accepted with just one application. You can leave it to Moneypod to sift through the 200+ payday/short-term loan lenders in the UK, saving you a great deal of time without the need for multiple applications on your credit file.
Since we receive a “thank you” payment from our lenders with every successful application we send them – whether you go through with your loan or not – our service is also completely free of charge to you.
As with direct loan providers, at Moneypod, we have certain criteria for our applicants looking for a short-term loan. This is to protect you, making sure you can comfortably afford to make your repayments.
You’ll need to be over the age of 18 and a resident in the UK, and to be reliably employed earning at least £500 per month. You will also need an email address and a UK bank account which your wages are paid into.
Put simply, working with a reputable credit broker like Moneypod will save you a great deal of time. We do all of the searching for you, comparing lenders from across the UK to find the best possible deals for your situation.
Moneypod also provide a completely free service – it won’t cost you any more to apply for a loan through us than if you were to go to the lenders directly.
We work to find a loan that works around your life, rather than the other way around. To find the best short-term loan solution for you, apply with Moneypod today.