Loans for Unemployed Disabled People on Benefits UK: Wonga Review

This review of Wonga.com aims to find out whether disabled and unemployed people on benefits can take out a payday loan. With all the ambiguity surrounding the eligibility of loans this review is aimed at people who are on benefits and want to take out a minimum fee loan where they can get the money on the same day. 

Wonga.com is a leading digital finance company based in London. The company was first launched in 2007 and is becoming one of the world’s most innovative credit providers. Wonga was recently names the best company in The Sunday Times Tech Track 100 and 92% of customers agree the service offered by Wonga is easy to use.

What Services Does Wonga Offer People on Benefits?

Wonga.com offers payday loans and cash advances, unfortunately they don’t offer installment loans or title loans. These loans are designed for short term urgent cash flow needs where you have an emergency or opportunity you can’t miss.  All you have to do is choose how much you need and for how long, you can apply online anytime and the decision is instant. All the costs are shown upfront. 

If you don’t pay on time there is a £30 missed payment fee which may affect your credit ratings and ability to borrow money from Wonga.com and other lenders. Wonga.com advise their clients that these loans are intended for occasion use and should not be used to service existing debt. All loans must be repaid within weeks and they do not hide the fact that this isn’t the cheapest way to borrow.

If you wanted to borrow £150 for 18 days then you would pay an interest of £27.99. The Transmission fee is £.550 and the total repayment amount is £183.49, this represents and APR of 5853%. You can add additional credit to existing debt or extend the payment period by clearing the interest charges and bringing the debt forward in time by refinancing.

What are the Rates & Charges for Wonga?

The interest rate for a Wonga.com payday cash advance loan is 1% per day, this is calculated at the end of every day. The transmission fee is £5.50 whenever you borrow money or additional money. There is an extension fee of £10 if you choose to change the promise date and there is a late payment fee of £30 if you miss your payment on the promise date. All fees and charges are clearly shown when you take out the loan so there really are no hidden fees.

Does Wonga Offer Payday Loans to People on Benefits?

As a responsible lender Wonga.com assesses every application on an individual basis, there are up to 8000 pieces of data that the lender uses to make a decision. This lender only lends to people who they think will be able to repay the loan. If you’re unemployed or disabled and on benefits then you should be able to apply, the only requirements for the cash advance is that you’re a UK resident, over the age of 18, have a bank account with a debit card and own a mobile phone. There is no mention of having recurring income, as long as you’ve got benefit money being paid into your back account and satisfactory credit you should be able to apply.