MyJar is a lender who offers payday loans and short-term loans. The company started operations in 2008 with the name TxtLoan. It changed its name to MyJar and moved to instalment loans. Unlike payday loans where you have to pay the principal and interest in one instalment, instalment loans allow you to make a small part of principal and interest payment each month until you complete the amount lent.
The organisation allows you to borrow any amount up to £4,000 for 3, 6, 12 and 24 months. Again, unlike other two-year loans where you pay all the interest accrued for the two years, even if you pay earlier,MYJAR only charges you for the interest that is accrued from the date you borrowed the money. This helps reduce the amount to be paid back if you can get some income early into your loan.
When you make an application for a loan, MyJar looks at various factors to determine your eligibility. These factors include your credit score, income, previous loans you have been given and financial commitments. It still gives loans to a section of the market that has bad credit scores.
Key Features of MyJar Loans
There are two types of loans offered by the organisation; the short loans that are paid in three months to a year and the two-year loan. The short-term loans are contained in MyJar Classic package while the long-term loan is contained in MyJar Plus package.
You can borrow between £100 and £500 to pay in three months. Six-month loans range from £150 up to £1,000 while 12-month loan amounts range from £250 to £2,000. The two year-loan offers are between £400 and £4,000.
The interest for your loan is calculated per day just like other payday loans. The highest interest percentage is charged on three-month loans at about 0.75% per day. Two-year loans have the lowest interest rates at about 0.35% a day. The representative APR for MyJar loans is 788%. However, not all customers who apply for loans will get the advances at this rate.
Once you have determined the loan amount and the period within which you shall pay your loan, you can make an application online. In the application, you will be asked to supply the lender with information on your bank account, income and expenditure. Ensure that you provide complete and accurate information to increase your chances of having the loan request approved.
If the loan application is approved, you will get both an email and text notification. You will be given limits within which you can borrow. Use these limits to determine the amount you want to borrow and the payment duration. You make a loan request on the phone or your online account. MyJar promises to send cash to your account in about 20 minutes.
The lender will then be taking monthly repayments of your loan using Continuous Payment Authority. If you would like to pay your loan outside the CPA, you can pay via telephone, text or online account. Each payment pays off the interest for the month with some part of the initial amount that you had borrowed. It puts the schedule of payments in writing so that you know when your next payment is due. There are penalties for payments that are not done on time.
What is the Continuous Payment Authority?
Continuous Payment Authority or CPA is a recurring payment structure where you allow a lender to withdraw money from your bank account on a recurring basis. CPA is different direct debit in that they allow the lender to withdraw cash from your account whenever the loan amount is due without consulting you. However, you can cancel the arrangement by talking to your bank or the lender. If you do, you must provide another method of making payments. MyJar can schedule payments to meet your wage cycle, whether weekly, bi-monthly or monthly cycle.
Basic Eligibility Requirements
For you to be eligible for a loan at MyJar, you must be a UK citizen who is at least 18 years of age. You must have a valid bank account in the UK and have been issued with a debit card. Besides, you must have a verifiable phone number and email address. Finally, you must have a regular source of income. The rest of the factors such as the credit history with the lender and credit score will be looked at after you have met the minimum requirements.
Are there Additional Borrowing Options
Currently, you are not allowed to extend the repayment period of your loan or top up a loan with an existing one. However, you can borrow a new amount once you have cleared the outstanding loan.
Head to their website and create an online account. Once you have confirmed your account, click on the Borrow button and fill the online application form. Ensure that you fill all the information that is requested accurately. You will receive the decision about whether the loan is accepted via text and email.
You will be asked to provide 30 days’ worth of your bank statement, the front view of your bank debit card, proof of address (such as utility bill) and a copy of your ID.
Yes and no. MyJar takes into account your credit score along with other factors such as financial history, income and the amount of credit you already have. All of these factors are scored to determine if you a risky borrower or not. You may have the loan approved with poor credit and declined with a good credit score due to other factors.