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Is Wonga A Safe Company To Borrow From? What You Should Know

Updated on August 30, 2012

On this page we are going to be taking a look to see if Wonga is actually safe. We will give you a brief overview of the company and tell you about their loans and how reliable they are. We will tell you about the Wonga online service and how safe that is to use and then we will basically tell you if this company are out to scam you are if they provide a valuable service. If you are wondering if Wonga is safe or not, then you are in the right place.

Wonga are a company that operate in the UK. They offer short term payday loans to people who may just need that little extra bit of cash till their next payday. Over the past few years Wonga have come in for a lot of criticism due to the high rates of interest and the massive APR rate they charge on loans. There are plenty of stories online about scams and hidden charges and people claiming that this company is not safe to use. So let’s have a close look and find out exactly how safe they are.

Thumbs Up For Wonga?

How Wonga Works

So as mentioned this company offer short term loans for people who just don’t have enough money till their next payday. You apply for a loan with them and if accepted they deposit the money into your bank account. Then you agree on a payment date within the next month. Then on that agreed date they take the payment out of your bank in one lump sum. The amount of interest you are charged depends on how much you borrow and over how many days. The longest term you can borrow over is just a month, so these really are short term loans.

The application process is designed to be very simple. You do need a bank account to qualify and it has to be active, this is something that Wonga will check up on. This is not an issue though, do not be concerned about giving them your bank details, as long as you are positive that the person you are dealing with does actually work for Wonga, then you are fine to give them your personal details. You can also do this online and again this is a safe process that will not come with any risks that you are not aware of. When they take the payment out of your account they will take the correct amount, do not be concerned that they may empty your entire account, they will only take the money agreed on, this is a company with a good reputation and they are considered trustworthy.

Is It Safe To Borrow From Wonga?

The fact is that Wonga are a well established trustworthy company. They will not do anything you have not agreed on and they will not rob you blind as some people may claim. However, there is something you do need to consider when thinking about how safe borrowing from Wonga actually is. There can be extra hidden charges that you may not be aware of. When you sign up for a loan these charges will be there in the small print, but many people of course do not read the small print when they sign up for things.

If you borrow money and then pay it back as agreed you are totally safe and have no need for concern. However, if you miss your agreed payment date and the funds are not there in your bank when the company try to collect them, then the trouble can start. You will be charged an administration fee due to the fact that funds were tried to be collected but could not be. Then additional interest will be applied to your loan. For each additional day that you do not pay the money back, extra interest will be added to your account.

This is when people run into major difficulties. The longer you go without settling your account the more interest is added. Wonga have an APR rate of 4214%, that sounds incredibly high, but over a very short period it does not actually amount to that much. But if your repayment is late then that massive APR figure starts to take effect and before you know it you can owe more than double what you originally borrowed. There are some awful reviews out there that have stories of people borrowing a few hundred pounds and then owing over a thousand.

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So Are They Really Safe Then?

So now you know a little bit about how the company works and what kind of interest you might be looking at, what can be say about how reliable a company this actually is. Well if you pay your repayment on the agreed date and fully comply with the rules of Wonga, then yes, they are completely safe. This is a good reliable company with a record of good customer support and plenty of satisfied customers. On the flip side however, if you do not have the money to make the agreed payment then you could find yourself in trouble. In this case then you are not safe, Wonga will add large amounts of interest to your account and you will find yourself slipping into serious debt before you know it.

So overall as you can see Wonga is perfectly fine to use if used in the correct way. They will closely guard your personal details and their online services are safe and secure and you should have no issues with them. All the really bad reviews of this company come from people who have not made payments when they should have, more often than not most customers are fully satisfied. All you have to do is remember only to borrow from Wonga in small amounts over short periods and then you really should have no problems at all.

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