We would all probably like to have a little more cash to spend, but in some cases, financial situations can be so bad that important bills or rent payments may be missed, and naturally, this can cause a lot of stress and anxiety. Since the credit crunch, lenders have been much stricter with their lending criteria, which means that some people have no other options available when they are short on funds. This is what payday lending firms can provide; they offer a short term, low value loan for up to 30 days, which is due to be paid on the next payday. There are restrictions on applications and not everyone will be accepted, but these are less strict than other financial institutions. The applications usually only take a few minutes and can be completed online.
Why use payday lenders?
Payday lending companies cause a lot of controversy in the media, with some believing that they basically prey on the weak and offer interest rates which are far too high. However, it could also be said that payday lending companies offer a lifeline to borrowers who have no other option for paying their bills and the interest rates are set at a rate to protect the business. Payday lending companies can be taking a risk by accepting applications from those with low credit ratings, so the interest rates act as a protection.
A Lot of Wonga
The most successful payday lending company in the UK is Wonga, who are widely recognised as a result of their extensive television advertising campaigns and their sponsorship of major football teams. Established in 2006, Wonga was founded by Errol Damelin, a highly successful entrepreneur and investor. It is estimated that Errol Damelin has a personal wealth of more than £34 million, so it is no wonder that he managed to make a success of Wonga as well. Wonga have continued to experience large scale growth in a relatively short time and now make up a huge 40% of the share of payday lending companies. The success of the company is continuing to grow, not just in the UK but also across the globe.
In addition to the UK, Wonga also have services operating in Poland, South Africa and Canada. There recent acquisition of Credito Pocket was rolled into their Spanish site ”Wonga.es”. They also procured German operated ”BillPay”, who offer an option for customers who need the option of paying for products in installments, rather than upfront. Wonga are certainly experiencing a lot of growth and this is likely to increase in the foreseeable future. With tighter restrictions and more transparent interest rates, Wonga have improved their reputation. They are not only just one of the most successful payday lending companies in the UK, they are also looking likely to be one of the most successful UK companies! Wonga are definitely worth watching out for and if you are considering a pay loan yourself, this is one of the most trusted payday lending companies.