Provided that you have a full-time job and a reasonable credit history, no bankruptcies, IVA's or County Court Judgements (CCJ's), you're eligible for a short-term cash loan. You'll need to be in full-time employment. Self-employment is an issue with Lending Stream, but not with Wonga.com. Lenders offer new and existing customers the opportunity to borrow money on an unsecured basis.
It's an alternative to a bank overdraft facility. You'll receive payment within a maximum of 24 hours and can use the money for any purpose. Lenders are more concerned with proof of identity and your ability to repay the debt than why you need some quick cash. You can get the money you need for any purpose, such as paying the rent or because you're planning to go on holiday.
How Much Cash Can I Borrow?
Your ability to borrow depends upon whether you're a new or existing customer. New Wonga.com customers can borrow up to £400, and up to £1,000 once you've improved your trust rating. It's just a matter of repaying the debt in-line with the terms and conditions of the agreement.
A new customer with Lending Stream can borrow between £80 and £600. A sophisticated credit system enables them to assess the applicant's creditworthiness. Once you've proven yourself to be a reliable payer and a good customer, you may the be able to borrow up to £720.
When Will I Receive My Money?
Both lenders make payment to you by bank transfer. Wonga.com make payment to your bank account within 15 minutes and Lending Stream within 4 hours. This is assuming that your bank or building society accepts faster payment and the service is operational at the time of transfer.
Not all financial institutions use the faster payments service. If you're with one of the smaller banks, you may find that payment arrives the next working day. Money Stream's express cash service incurs a £15 charge, but you can move money for free with Wonga.com.
The Cost of Fast Cash Loans
The cost of borrowing is determined by the amount of money you require relative to the duration of your fast cash loan. Wonga.com requires repayment after 45 days, but Lending Stream allow you to repay the debt over up to 6 months with no roll over charges.
A £200 quick cash advance from Wonga.com will cost you £266.31 per month at a representative APR of 4214%. Borrowing £200 from Lending Stream will cost you just £260. However, if you do decide to spread the repayments over 6 months, you'll repay a cumulative total of £440.
What Are the Consequences of Default?
If you're unable to repay the debt, it's recommended that you talk directly to the lender. If you default on the agreement, there's a £10 charge and a further fee of £12 if the default is left unremedied. If you're pursued by a debt collection agency, you'll incur an additional £40 charge.
Both Wonga.com and Lending Stream report to credit reference agencies. If you repay short-term installment loans punctually each month, your credit rating will improve. However, if you default on the agreement, it'll be a lot harder for you to borrow money for up to 6 years.
Sources:
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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