Payday Loans

A payday loan is a short-term loan, intended to bridge the gap if you run out of money before your next pay day – a bit like a cash advance on your salary.

To qualify for a payday loan, you must have a current account and a regular income.

Unlike secured loans, payday loans are also open to tenants as you don’t need to own your own home.

How much will I pay?

The annual interest rates on payday loans can look quite frightening, for example, some charge an annual percentage rate of 1286.2%. Because the loan should last no longer than a month, it is more useful to calculate the monthly charge.

Be careful as debts can quickly spiral out of control if you do not pay off the loan at the end of the term. Most firms will let you roll the debt over, but you then pay interest on the total amount you owe.

You should only consider a payday loan if you can clear the debt within a month. If you need to borrow money over a longer period, you should look at alternative sources of credit. 

Another alternative source of short-term credit is your local Credit Union, Wolf Savings and Loans. 

Click here to view our Loan Comparison Leaflet to compare loans from Wolverhampton City Credit Union and other financial institutions.