UK Loan Comparison: Lending Stream vs Wonga.com

Lending Stream & Wonga.com provide short-term cash loans. You’ll need a job and a fair credit rating, but you can get some fast money in your account today.

Provided that you have a full-time job and a reasonable credit history, no bankruptcies, IVAs or County Court Judgements (CCJs), youre eligible for a short-term cash loan. Youll need to be in full-time employment. Self-employment is an issue with Lending Stream, but not with Wonga.com. Lenders offer new and existing customers the opportunity to borrow money on an unsecured basis.

Its an alternative to a bank overdraft facility. Youll receive payment within a maximum of 24 hours and can use the money for any purpose. Lenders are more concerned with proof of identity and your ability to repay the debt than why you need some quick cash. You can get the money you need for any purpose, such as paying the rent or because youre planning to go on holiday.

How Much Can I Borrow?

Your ability to borrow depends upon whether youre a new or existing customer. New Wonga.com customers can borrow up to £400, and up to £1,000 once youve improved your trust rating. Its just a matter of repaying the debt in-line with the terms and conditions of the agreement.

 

A new customer with Lending Stream can borrow between £80 and £600. A sophisticated credit system enables them to assess the applicants creditworthiness. Once youve proven yourself to be a reliable payer and a good customer, you may the be able to borrow up to £720.

When Will I Receive My Money?

Both lenders make payment to you by bank transfer. Wonga.com make payment to your bank account within 15 minutes and Lending Stream within 4 hours. This is assuming that your bank or building society accepts faster payment and the service is operational at the time of transfer.

Not all financial institutions use the faster payments service. If youre with one of the smaller banks, you may find that payment arrives the next working day. Money Streams express cash service incurs a £15 charge, but you can move money for free with Wonga.com.

UK Loan Comparison of Costs

The cost of borrowing is determined by the amount of money you require relative to the duration of your fast cash loan. Wonga.com requires repayment after 45 days, but Lending Stream allow you to repay the debt over up to 6 months with no roll over charges.

A £200 quick cash advance from Wonga.com will cost you £266.31 per month at a representative APR of 4214%. Borrowing £200 from Lending Stream will cost you just £260. However, if you do decide to spread the repayments over 6 months, youll repay a cumulative total of £440.

What Are the Consequences of Default?

If youre unable to repay the debt, its recommended that you talk directly to the lender. If you default on the agreement, theres a £10 charge and a further fee of £12 if the default is left unremedied. If youre pursued by a debt collection agency, youll incur an additional £40 charge.

Both Wonga.com and Lending Stream report to credit reference agencies. If you repay short-term installment loans punctually each month, your credit rating will improve. However, if you default on the agreement, itll be a lot harder for you to borrow money for up to 6 years.