Alternative Lending Schemes
For people with poor credit who may need a lend, borrow or loan, trying banks and familiar institutions may have them turn up empty handed.
While having poor credit may not exclude you from being the recipient of a loan, you can bet it is going to have some impact on it.
Wonga Payday Loans
Payday loans have been in the news a lot lately due to their increase in people seeking out this form of lending, and also due to the high interest rates that can be charged.
Now Wonga, a payday loan company, have found themselves a new bit of advertising, and not like their TV adverts, which feature elderly puppets granting loans, it isn’t as cute.
Wonga has removed pages from its web site after they were accused of being irresponsible for targeting students.
In my trying to view their web site, it was down, or completely swamped and the server could not keep up.
Payday loans are a short-term easy way for people who are working and have a bank account to get access to cash. Wonga has stated they will continue to accept applications from working students, and that the article on their web site was out of date and ‘gave rise to misunderstanding’.
The NUS (National Union of Students) criticised the marketing technique that Wonga had on their web site, and felt it encouraged students to live beyond their means.
Anyway, that page on the site has been changed or removed.
Students have long been a target, for lack of a better term, for banks and lenders. I remember doing some research into the number of credit card companies that offered credit cards to students, and the number of students that graduate not only with student loan debt, but also with credit card and various other loans.
While payday loans can be a useful financial tool for some people, they need to be reviewed and looked at throughly before being entered into.