Online Loans

Payday loans or online loans?

247Moneybox provides transparent and straightforward online loans from £80 to £800. As a responsible lender, we want our customers to ensure they can afford to repay any credit without any detriment to their financial position. Therefore, we limit first-time customers to a maximum of £200 subject to affordability and criteria. For returning customers we may allow up to £800 should it prove affordable and based on an excellent borrowing history with us. For more information on online loans, click here.

The good credit bad credit debate

An age-old back and forth, especially where online loans are involved. Credit reports only ever provide a snap-shot of a financial position for a customer. There are other factors to take into account. Another element to bear in mind, is that there is not a hard and fast rule book when it comes to defining something as good credit or bad credit. Each lender, or indeed any entity that extends credit, makes their own choice about what they determine as good and bad credit. This is not quite the picture painted by the media or indeed other firms that purport to improve a credit score. With something as subjective as affordability and credit score, it is down to the credit provider to make the assessment.

Checklist before application

Before an application for a 247Moneybox short term online loan, we believe a customer should ask themselves whether credit and borrowing money is the right thing for them. So questions like:

  • Can I cut down on spending or put off buying that item until I've saved-up?
  • Am I borrowing money to make repayments on other loans or debts?
  • Is my situation unlikely to improve in the long-term

If a customer asks themselves the above questions and thinks that they do need help, we point them to free debt advice from www.nationaldebtline.org or www.stepchange.org. For more information on how we lend responsibly see here.

Comparing lenders

If an online loan is right for a customer, then they want to ensure they have compared the market as there are many providers out there offering credit. What's the best way to do this? Good question. One of the many benefits of a growing online economy, is that information flow is becoming greater on a daily basis. There are numerous websites out there that will show comparison tables of payday lenders' products including an online loan and instalment loan.


Senior man using tablet to search for online loans

Alternatively, a customer can use a broker to actively find a payday lender for them. What level of service a broker provides can vary so our advice would be to read their terms and conditions first before signing up to their service.

Costs of an online loan

Since January 2015 any lenders that want to lend high cost short term credit, the official term for online loans, have to abide by a regulatory price cap. This restricts the amount lenders offering this product can charge to 0.8% per day of the amount borrowed.

This regulation was brought in by our regulator the FCA who took over as the regulator of our industry from the OFT in April 2014.



FCA price cap of high cost short term credit

Source: FCA Handbook

Budget the repayments

When taking out an online loan, it's important that you're able to pay it off within the scheduled time period. Taking out a loan can seem like a great idea to smooth calls on your cashflow, but it can increase stress if you do not plan and budget to account for the additional monthly payments.

How to make a budget: tips and hints

Planning for the long-term even though there is a short-term crisis is prudent and will put you in a good position months or even years down the line. Planning or budgeting is a key skill which can be applied in many different areas of your life, however when it comes to your personal finances, it's crucial.

But why set goals at all? Elite athletes, successful entrepreneurs and high achievers in all fields set targets. Setting goals gives you long-term vision and short-term motivation. It gives you laser focus on the acquisition of knowledge and helps you to organise your time and resources so that you can make the most of your opportunities.


Online loans and some facts

As with any new form of credit, there exist a number of myths and misunderstandings about what online loans are, what they were designed for and most importantly what they can't be used for.

To ensure you have enough money each month to pay off the loan instalments, it's essential that you have a clear picture of your monthly outgoings. First, assess how much goes into your bank account from the different sources, so that you understand your baseline. Then you need to get an idea of where you spend your money each month, using your last bank statement as a guide. If you think of running your finances like you would a business, your total income is the figure that you must ensure your outgoings do not exceed, otherwise it could lead to an untenable situation.

If you find that in your current position, then there are still plenty of options to improve your financial position. Many people eat out multiple times a week, but it can soon add up with travel expenses on top too. Why not make staying in the new going out! For the price of a meal in a restaurant, you can buy the ingredients and make a really tasty meal in your own home. Instead of going out at the weekend, why not invite your friends round to watch a film. Many people also use their own car to travel everywhere, but public transport is often a much more cost effective option, as well as being far more eco-friendly. These are just a few methods of making your money go further, but there are many others. There's always ways and means to ensure that you can budget, you just have to get a little creative!

Online and payday loans have certainly had their issues as with any new financial product. However, since April 2014, the new regulator, the FCA, has taken a tough stance to protect the consumer. For example, if you take an online loan out today, your lender can never ask you to pay back more than twice the amount you initially borrowed. This provides reassurance to borrowers as you know the absolute maximum you will ever have to repay. This and other measures introduced by the FCA, mean that prospective customers can make a borrowing decision with the full information to hand. In addition, the FCA has introduced a price cap. Now, if you take out a 30-day online loan repaid online, the lender cannot legally charge more than 0.8% per day borrowed. That's of course the top of the bracket, and you may be able to find lower charges using comparison sites.

Online loans are designed to be a solution should you need additional cash delivered to your account. However, it is imperative to consider that it is only a short-term fix. If there's a recurring issue that means that you frequently need money to pay your bills, then you need to find a solution that does not involve increasing your outgoings further. This is why it's important to not rely on payday loans or indeed any other form of credit, otherwise the situation will soon become unsustainable. The key to addressing that issue is to ensure that all of your essential bills are paid, like rent, food, utilities etc. and then use every other means and ways to ensure that you do not need further credit at the end of the month. This way, you can begin to make it from month to month without a loan and become more financially independent. It's worth negotiating with your lender to see if they will allow you to restructure your repayments. For example, increase the term of the loan to reduce monthly repayments.

We have made the point before but it's worth repeating. If you are having problems, or feel that you may struggle to meet your repayment date, it is very important that you let us know sooner rather than later. If you do not do this and your payment fails, then this is a serious matter. We are obliged to report your payment history to credit references agencies which will make the record available to any current and future creditors. If your credit score gets worse as a result it may make getting a loan or some form of credit harder in the future. Note that if you do fail to make payment, interest continues to accrue and a late payment fee will be applied. In this instance. Should this happen, we will make every effort to contact you via telephone, automated voice message, email, SMS and letter in order to understand the situation and if appropriate arrange an alternative repayment solution.


There are alternatives to online loans

In this context, we are talking about payday loans so it is important to note that there are other types of products out there. For example, the following are all unsecured credit:

  • Personal loans
  • Credit cards
  • Store cards
  • Overdrafts

Consider also whether credit is actually the answer to your particular situation as it may just be papering over the cracks i.e. masking a more fundamental problem. Often, we see customers who think that a payday loan is the answer but really it only keeps them going another month or so. What the customer really needs to look at is why their outgoings have exceeded their income for a sustained period of time. This may be obvious, for example they have lost their job but at other times it may point to more fundamental issues. Before borrowing it may be an idea to look to see if you can postpone payment of whatever is making the largest demand on your finances. For example, if it is a bill, why not contact the supplier and ask for more time to pay or ask them to extend the credit if you pay in arrears. Acting with forbearance should be central to any company that puts the customers at the heart of its business.

If you need further infomation or if debt becomes a worry why not get some free advice from www.nationaldebtline.org or www.stepchange.org.

Online loans from 247Moneybox

Here at 247Moneybox, we will do our utmost to provide you an optimum experience when using our service. Rest assured we leverage only cutting edge technology to ensure that the loan application process is as hassle free as possible allowing you to get on with the important things in life whilst at the same time ensuring that your security is not compromised.

We acknowledge the need for funds to be deposited in your account in short order, that is the reason for your application in the first place! However, don't confuse an increase in speed with a decrease in service. We are a responsible lender and only make responsible lending decisions. Our straightforward application page is easy to use, just fill out your details and if approved, you can be funded direct to your bank account. We will consider offering our online loans for bad credit, so don't be put off from applying for a payday loan even with bad credit. At 247Moneybox, we don't just take into account your credit score or credit history, but rather by affordability. No matter how good the data available there is always an element of trust between the borrower and the lender.



"No matter how good the data available, there is always an element of trust between the borrower and the lender." 247Moneybox.com
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Paying back online loans

Your loan repayment(s) will be collected automatically on the contractual date(s) using your debit card. If your card details have changed, please login to your online account to update.

Remember there are late repayment fees if you miss a payment for your online loan and interest may continue to accrue. This will increase the amount you have to pay back which is something we all want to avoid. Late repayment may lead us to report this fact to the credit reference agencies, which may have a negative effect on your credit score and make obtaining credit in the future more difficult.

If you are an existing customer and would like to apply for an online loan, please do this through your online account. If you have forgotten your password, you can retrieve it at the login page.

At the end of the day we do know that your personal and financial circumstances can change. If this occurs, or if you are having difficulty keeping up to date with your online loan, then please let us know as soon as possible by calling on 020 7183 8078, and our friendly team will do their best to help. Don't be apprehensive about calling, it's better to discuss the issue sooner rather than later.

If you are experiencing financial issues, go to moneyadviceservice.org.uk for free independent debt advice.


Our online loan commitment

Rest assured we will always show you the full costs upfront and the total amount you will be required to repay before you apply. This is to help you make a responsible borrowing choice. We do not charge any application fees, i.e. applying with us is completely free of charge. We offer straightforward payday or online loans.

Here at 247Moneybox we are passionate about responsible lending, if we believe that our online loans are not affordable for you then we will let you know in a timely manner. Where appropriate we will provide free debt advice. This is our commitment or promise to you when using our service.