Pay monthly vs pay weekly loans
Weekly repayment loans are usually for relatively small amounts to be repaid over a short period. Therefore by design they are usually aimed at those with bad or poor credit or those who are unlikely to be accepted by ‘traditional’ lenders owing to their credit history.
Monthly loans however are much more common and numerous lenders, including 118 118 Money, offer these. We do consider applications from those who don’t necessarily have a perfect credit history.
Both these types of loans are often unsecured loans, meaning no collateral is considered. They are generally fixed rate loans too, which means the repayment term, amount, and rate of interest are fixed for the duration of the agreement. Missed or late repayments on a 118 118 personal loan will incur a £12 charge.
How do I know if a ‘pay weekly’ loan is right for me?
As with any financial product, you need to be confident that it suits your situation and that you can afford the repayments – whether that’s on a monthly, fortnightly, or weekly basis. Ask yourself how much you need to borrow and how long you need to give yourself to pay it back.
Everyone’s individual circumstances are different, and what works for someone else might not be the right option for you. A weekly instalment loan could be perfect, especially if you get paid weekly, but it’s important for you to understand the alternatives that are available.
We are not weekly loan lenders but we do offer monthly loans and if you decide a loan is not the best fit for your situation, you might find that the 118 118 Money Simple Interest Rate Credit Card is a suitable solution.
Before you enter into any contract, do your research, and carefully read the terms and conditions and don’t be afraid to contact the lender if you have any questions.
Comparing credit cards and ‘pay weekly’ loans
Pay Weekly Loans
Often lower than weekly loans
Can be higher than credit cards
In full, in minimum instalments or any amount in between
Weekly instalments, potentially with the option to increase those and repay early, can vary by product, however
Can be used as a continuous line of credit, within the credit limit
The agreement ends once you have repaid the loan amount in full, including the interest
Can I get a 118 118 Money Simple Interest Rate Credit Card?
If you think a credit card may be a better fit than a weekly payment loan, you can check your eligibility for free before you apply. It’s a simple tool that lets you know if you’ll be approved as well as the credit limit we can offer. And don’t worry – it won’t have any effect on your credit score. To be eligible for the 118 118 Money Simple Interest Rate Credit Card, you’ll need to:
- Be a UK resident
- Be aged between 18 and 70
- Earn at least £8,400 a year
- Not be in arrears with another lender
- Have had no default payments in the past six months
Whilst checking your eligibility, we’ll also require the following details:
- Email address
- Date of birth
- Current employment and residential status
- Net monthly income
- Home address
Will my credit score be affected when I apply?
Applying for credit – a weekly instalment loan, a credit card, line of credit or anything else – can affect your score, although the impact of a single application should be minimal. If you’re approved, you could improve your score by making sure every repayment is met in full and on time and all other credit commitments are met. This shows lenders that you are a responsible borrower.
The reverse is also true, however. If you miss or are late with your repayments, it could negatively affect your credit score. And it can also be harmful to your rating if you make lots of applications in a short space of time, so this is not recommended.
There are credit cards to build credit which are available and some lenders, including 118 118 Money do consider applications from those with poor credit too.
Will I need a credit check?
Yes. All credit card or ‘pay weekly’ loan companies will do a credit check as part of reviewing your application for credit. It’s worth checking your credit report before you apply, and don’t forget you can always use our eligibility tool, which has no impact on your rating.
How do I get in touch if I have questions?
If you’d like to know more about our credit cards and why they might prove a suitable alternative to weekly loans, feel free to get in touch with our Customer Services team.
You can call us on 02920 548 118 – lines are open from:
8am – 7pm Monday to Saturday
9am – 5pm Bank holidays
Closed – Sundays
Don’t forget, you can also use our web or app chat facilities.