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All you need to know about your wage day advance
It’s getting towards the end of the month and you are running low on cash. Don’t you wish you could get your paycheck just a few days early? Well, with a wage day advance, for a small fee you can borrow that extra bit of cash until you get your paycheck. Cashfloat provide short term loans at an affordable price designed to tide you over until your next payday. With our dynamic wage day advance loans, you can repay all or part of your loan early, saving on extra interest. Cashfloat- helping you step into the new month with ease.
What is a wage day advance loan?
You have enough money to last you until you next get paid, on your next wage day. However, an unexpected expense crops up. Your car breaks down. You need emergency dental treatment not covered by the NHS. Your son breaks the neighbor’s window with his football and you have to pay right now or he’ll take you to court. You need an extra few hundred pounds, urgently. It doesn’t help that you’ll have the money when you get your next wage, because the expense has come up now. Here, payday loans come in. They are a way of getting an advance on your wage day – receive the money now, and pay it back when you get paid. The problem is that because these are so short term, the interest rate is pretty high. FCA have capped it to 0.8% a day, but make sure you understand in real terms exactly how much interest you will be paying back.
Wage Day Advance Loans and the FCA
Before the FCA regulations were introduced in 2014, various popular lenders took advantage of people looking for a wage day advance. They charged a ridiculously high compound interest rate for loan borrowed for just a few days. The shorter the loan was for, the higher the APR was. With the introduction of the FCA regulations, these lenders could no longer take advantage of vulnerable clients, and were forced to cap their daily interest to a maximum rate of 0.8% per day.
Many clients are not aware of the new options available to them. We hope that this article helps as many people as possible to find better and more affordable loan solutions for their wage day advance needs. Surprisingly enough, despite the FCA’s great media campaigns, for the most part, online search trends remain the same.
Payday Loans as a Wage Day Advance
Here is a tip that can save you a lot of money: Look for a direct lender that allows you to pay the loan early without any penalties. Apply for a loan over a longer period of time, rather than just over a few days. If you can, pay it early and cut the total cost of the borrowing. A two monthly instalments loan is by definition more affordable than a single payment one. If you can pay it early without any penalties, you’re a winner. Even more so, taking a loan for few days and paying it all in one instalment may even increase the risk of getting into expensive arrears.
What is a wage day advance?
The definition of a wage day advance is when your place of work pays you your salary a bit early at your request. This can also be called a salary advance. So, for example, if you’ve had an expensive month and just need a small cash injection to help you get to payday, you can ask your job for a wage advance. Some employers may charge you a bit of money to cover the paperwork. If the request is approved, your salary will be paid out to you before your regular payday. Naturally, not a lot of employers approve wage day advances. Therefore, to help you out, Cashfloat offers wage day advance loans. Wage advance loans can really help you to get through a rough patch and, come payday, you can repay the loan and go back to being debt-free!
How long does it take for a wage day advance?
If you need a wage day advance, you will need to approach your employer. Depending on Your company’s HR rules, different companies will deal with wage advances differently. Getting a salary advance from your employer could save you money in interest you would pay to a traditional lender. However, it’s not always easy to admit your hardship to your boss and ask for a wage advance. In addition, some places of work will not consent to pay you your wage early. In these situations, taking a wage advance loan may be your only option.
Is a wage day advance UK loan the same as a wage advance?
Essentially, the 2 are very different. A wage day advance (also known as a salary advance) is when your employer pays you your wage in advance. A wage day advance loan is when a lender gives you money before your wage day. Wage day advance loans in the UK are common and are also known as payday loans. Like wage day loans, payday loans are borrowed during the course of the month and repaid on your payday – as the name suggests. Cashfloat is a fully authorised wage day advance lender as well as a responsible payday lender. If you are stuck before your wage day, we would love to help you!
Where will I find wage day advance loans in the UK?
Wage day advance loans can be found online, from websites like Cashfloat.co.uk. As with any online product, make sure to check that thw website and lender you are using are safe. Once you’ve found a wage day loan lender, all you have to do is fill out a simple application form and sign a digital contract. Then, if the request is approved, you can receive the money by the same day. Normally, wage day loans are repaid on your wage day in one lump sum. However, with Cashfloat, you have the option to repay in instalments, making repayment easier and more manageable.
Real Life Example
Let’s say that your wage day is at the 25th of the month. For our example, today is the 5th. Unfortunately your car broke down and now you need £400 you didn’t plan to spend. Sure, you can wait until your wage day in 20 days, but how will you get to work every morning?
You start thinking about the options available to you, and search Google for Wage day advances or wage day loans. Google will probably offer you some good lenders that would be happy to give you £400 for 20 days. If we calculate the loan with the FCA maximum daily interest rate for twenty days, it would come up to around 16%. In other words, on your next wage day you will have to pay around £464 pounds back.
Wage Day Advance Payday Loans
Payday loans can help you when you need a wage day advance. Payday loans help to bring your wage day that bit closer, by giving you the money ahead of payday. Then, when you get your wages, you can pay back your payday loan with the wages that you receive.
But, be aware that payday loans are a type of short term loan UK for emergency situations only. If you can postpone your expenses a few more days until payday, you will be much better off. Try to find an alternative arrangement to taking a payday loan or a wage day advance. For example, you might be able to borrow money from a relative, or ask someone to pay for you using their credit card. Payday loans are only for a last resort, when you have no other way of making it to payday with your finances still intact.
A wage day advance loan as a financial instrument
Is that something you can afford? Think about it – will you be able to pay all your other expenses, or will you need to take out another loan? If your answer is not a definitive YES I CAN PAY, you may want to consider an affordable alternative. As well, try to avoid companies advertising wage day loans no credit checks
A wage day advance loan is a handy financial instrument but at the same time, might not be the cheapest option available for you in the market. Here at Cashfloat, we encourage all our customers to check for alternatives before applying for this sort of credit. Yes, we are a direct lender and yes, we are fully FCA-authorised. We will treat you fairly, keep your data safe and do anything in our power to help. But, we may not be the cheapest option available for you. We want to ensure that when you apply for payday loan with us, you understand the terms and are happy with our product.
Now let’s take a look at a different way you might choose to finance your broken car. The best lenders in the UK offer early repayment as part of their “treating customers fairly” policy. As well, new payday loan lenders like Cashfloat offer same day funding without any extra charge once the application is approved. You can take a £400 loan for two months. This means that in twenty days you would have to pay only £240 instead of the whole amount. If, in twenty days, you can afford to repay the amount in full, go ahead and pay it all to close the loan. If not, it’s as if nothing happened, you can close it at your next wage day without extra charges other than the normal daily interest.
You have a choice, you can be picky. So you can go for the best deal. To make it easy for you to compare lenders we have created a “Dare to Compare” chart. Dare to read it?
Despite the FCA’s many efforts to educate the market, many consumers are still searching for old-school, expensive borrowing options. In this article, we tried to explain fresh alternatives available for consumers in the UK to obtain affordable loans online. As a responsible lender, we encourage our customers always to look for a better alternative for their current financial situation. Remember, instalment loans from a direct lender like Cashfloat can be paid early, and therefore may be a better choice for people searching for wage day loans.
Payday loans lenders in the UK
|Company||Direct lender||Loan types||Comment|
|Cashfloat||New direct lender||Payday loans, short term loans, Cash advances||Customers choice as a new alternative to payday lending in the UK|
|Uncle Buck||Traditional direct lender||3 month payday loans||Uncle Buck was founded in 2010.|
|Mr Lender||Traditional direct lender||Short term loans||Mr Lender operates under the registered name ‘PDL Finance Ltd’|
|Quickquid||Traditional direct lender||Short term loans||Quickquid was launched in 2007, the first branch in the UK of the American company, CashNetUSA.|
|Wonga||Traditional direct lender||Short term loans up to £400 for new customers||Wonga infamously faced nationwide criticism before the FCA era.|
|Payday Express||Traditional direct lender||Short term loans||Payday express is a founding member of the Consumer Finance Association|
|Piggy bank||Traditional direct lender||Short Term Loans and Instalment Loans||DJS UK Limited is the company behind Piggybank|
|Wageday Advance||Traditional direct lender||Short term flexible loans||Wageday advance is a Yorkshire based company|
|Payday UK||Traditional direct lender||Payday loans||Payday UK is a trading name of Instant Cash Loans, which also trades as The Money Shop and Payday Express in the UK|
* We try to promote fair competition and allow customers to compare Cashfloat loans with other leading lenders in the UK. We intentionally left the Dare to Compare comparison table empty so you can do your own comparison. We try to be the best for you but we want you to compare and make your own decision.