Bank Overdraft

Thinking of using or extending a bank overdraft? They're probably one of the easiest ways to access some quick cash. Well, they used to be – but now you've got Wonga! Wonga.com is a new way of borrowing money which can eliminate the need to use a long-term overdraft facility. Wonga is a great alternative to borrowing from the bank because it's a straight forward cash advance that doesn't encourage an ongoing debt.

Why get a Wonga loan instead of a bank overdraft?

The advantage of getting an overdraft is that it's fast and convenient, but along with convenience comes a price. Unauthorised overdraft charges can be very high for a small amount of money. But even if you have an authorised overdraft, it can be easy to keep extending it, yet not so easy to pay it back.

There’s usually no deadline, so you are reliant on self discipline to pay back what you borrow. You can easily end up with a large overdraft that’s very hard or slow to pay off. Either that or you suddenly reach you limit - and that’s the end of your credit facility, or the start of high fees and interest.

Short-term loan

Wonga is different to an overdraft. It's the ultimate cash advance service that helps you live your life when unexpected expenses crop up. You can borrow between £50 and £750, depending on your trust rating, and the interest rate is £1 per £100 per day. Select how much you would like to borrow and the date you promise to pay it back and Wonga calculates exactly how much the repayment will be before you apply.

The cash is paid directly into your bank account – usually within an hour – and you pay the loan back within 30 days, on a date that suits. Unlike an overdraft it’s strictly a short term loan, but you can use the service again whenever you repay a loan and the need for short-term cash arises.

Overdrafts: convenient cash or risky business?

UK consumers are charged some significant fees every time they create an unauthorised overdraft, not to mention interest rates on top. Constantly overdrawing from your bank means you keep relying on that little bit extra every month - but the ‘little bit extra’ can soon grow into something much bigger if you don’t keep paying it back.

Wonga encourages short-term borrowing. We recommend you only get a loan for what you can afford. We only lend you money for up to 30 days, so you won’t be in debt for years. Wonga is not for everyday use, but we’re here to help with emergency cash for any unexpected purchases or events which just can’t wait until payday.

So why do people bother with an overdraft?

People use an overdraft because they are easily accessible and quick - but Wonga's got them beat. With a 100% online application and quick approval, you could have your fast loan within an hour of applying. There's no faxing, photocopying, phoning, queuing or begging!

Wonga it!

If you find yourself running into an overdraft for those must-have purchases or cash emergencies which just can't wait until payday, getting a Wonga loan is a sensible option to consider. Next time you face a cost you haven’t budgeted for, don’t worry – Wonga it.