What is a Wage Day Advance?
We all find ourselves short of cash from time to time, which is why a wage day loan is an ideal answer to your financial concerns. Whether you need a hundred pounds to pay an important bill before your pay day, or a few hundred pounds for something more important, a wage day advance will allow you to borrow money, dependent on your individual circumstances.
A wage day loan is a loan that is taken out over a short period of time, usually between 1 and 3 months. A wage day loan is typically for a limited amount of money (generally between £50 and £800 for returning customers and slightly lower for new customers). Although they can be for higher amounts. This is to ensure that you are able to make your payments within the agreed terms.
If you do take out a loan over a longer period of time and you have a change in circumstances, you can make overpayments so that the borrowing period ends sooner.
There is usually a daily interest charge on the amount that you borrowed throughout the term of the loan. This means that any late payments will incur a late payment charge in addition to the daily interest.
How are wage day loans different to ‘payday’ loans?
Payday loans are loans that are taken out for a short-term period, just like wage day advances, but customers are expected to pay back this type of loan in one lump sum. You will also find that payday loans have a higher interest rate than wage day advance loans.
This means that you have to pay more money back over a shorter period of time. It is also worth keeping in mind that payday loans are usually for smaller amounts of money than wage day advances.
Why take out a wage day advance loan?
Wage day advance loans allow you to borrow money quickly with the money deposited into your account, often within hours of your loan being accepted. With more reasonable interest rates than payday loans, they are more affordable for customers and can be paid back over a number of months.
Whatever number of months you decide to pay back your loan over, you can agree a date that matches your pay date, as long as it is not less than 21 days, which is the minimum repayment date if you are paying over a number of months. For loans shorter than 21 days, you can pay the loan back in full with the interest calculated until that date.
Wage day loans are a form of responsible lending.
Wage day advance loans are authorised are monitored by the Financial Conduct Authority and are created with responsible lending in mind. First-time customers will not be allowed to borrow money that cannot be paid back, and repeat customers are encouraged to borrow within their means.
A wage day loan is easy to apply for, with quick online forms for you to provide your full financial information, and you usually get a decision within minutes, with the money then being deposited into you account as quickly as possible.
As long as you are age 18 or over, you can enjoy the benefits of a competitive loan that provides money for emergency situations, on your terms.