The lending industry in the UK is at a fascinating time right now, as more innovation is pouring into the business, causing the kind of disruption that threatens to sack older credit brokers and put them clean out of business. Be that as it may, it would be beneficial to consider some of the more important industry players who have proved themselves over the years, and look at their packages, before taking a look at newer models and brokers, and see what they’re offering differently. It is hoped that at the end of this survey, the reader is far more likely to make a more informed decision on borrowing, including who to borrow from and what type of loan package to insist on.
If you took an independent survey, the market leader most would insist on in the borrowing realm is Wonga. If you have even glanced at your TV in the last few years, chances are you’ve been entertained by one of Wonga’s quirky ads expertly reeling out the benefits of choosing them as your credit broker or partner, and indeed they have proved to do a fantastic job at onboarding a hefty chunk of prospective borrowers. In this post, we will look at their packages closely and establish the precise value of their relief in contrast with the weight of the interest they charge on each such transaction.
Wonga started operations in 2007 and has since established itself as a key player in the short term loan space in the United Kingdom. Wonga offers two main types of loans to borrowers, the Wonga Short Term and the Wonga Flexi loans. The short term loan is normally offered to first-time borrowers and is available only for between £50 and £400 and is repayable in a maximum of 30 days. The loan is repaid with a fee on it, and if the borrower misses the repayment day, an extra charge of £15 will accrue on the third day after repayment day. P retty basic level borrowing and lending going on with this package.
The Wonga Flexi allows borrowers to access between £150 to £500 (it can go up to £1000 for return borrowers), which is repayable over a three month period. Missed payments would attract a penalty of £15. For every £100 borrowed, the fee stands at £36.72, which is the HIGHEST rate in the United Kingdom.
Creditpoor (CreditPoor.co.uk) is an emerging company in the United Kingdom that gives out loans at reasonable interest rates especially to borrowers with poor credit. This company sources for the best loan deals for each borrower and provides the loan almost immediately. They are available by phone call, via their website – CreditPoor.co.uk, and have an office where a person who wishes to make an inquiry can walk in and talk to an expert. This naturally brings them closer to the target demographic. Creditpoor is essentially lowering the borrowing bar and has received a lot of business because of it. They offer payday loans, personal loans, short term loans and guarantor loans, and because of their unique value proposition of providing loans to people with bad credit scores, they have effectively unlocked a whole new demographic of potential clients. Pair that with their easy to use website – CreditPoor.co.uk, active facilitation of these loans plus the fact that they are more approachable and it’s easy to see why they have grabbed a chunk of the lending industry revenue and are thriving well. The credit broker also offers some of the most lenient interest rates which may be because they source these loans from a large pool of credible lenders.
In the end, it is crucial to know your way around the lending industry if you’re looking to gain access to some financial relief. You have to carefully do the research and find what works for you both now and in the long term. Nevertheless, the most important things to consider are your ability to pay back within the allotted repayment time, how much interest your lender is proposing and what it accumulates to over time. If you’re asking the right questions, you will spot hidden charges and caveats from a mile away, but then again, it is safer to go with a broker with a reputation for being open and transparent about loan packages, and low-interest rates. Much safer.