Lender in Focus 12.4: 118 118 How repayments work and APR

118 APR and how Repayments Work

118 APR and how Repayments Work

118 118 Money are a medium term loan provider that are owned by the same company as the 118 118 directory.

At CashLady, we want to help you understand all aspects of financial lending, not just quick loans. Today we’re carrying on with our look at 118 118 Money. We’re going to talk about the 118 118 APR rates and how repayments actually work with them.

How do repayments work at 118 118 Money?

Repayments are an integral part of taking out a loan, so understanding how your repayments work are key to not getting charged any extra fees.

118 118 Money requires that you set up a direct debit from the bank account that is registered with them. When you make a payment, you should see it in your account within an hour of making the payment. You can check online to see whether the payment has gone through, simply log into your account.

To pay your balance, you should follow the instructions that are laid out here. You can pay in a multitude of ways, including in a bank, over the phone, and even via the internet.

If you want to pay off the loan early, that is not a problem.

118 118 Money will allow you to make either a full or partial repayment of the loan at any time. There are no hidden fees and no extra charges for doing so. Simply call their customer service team and discuss with them how much of the loan you want to repay.

Lender in Focus 12.4: 118 118 How repayments work and APR

If for any reason you find that you’re unable to repay the loan, for any reason, you should call up 118 118 Money and let them know. The sooner that they know you have a problem, the sooner they can work on giving you the help you need.

118 118 Money are a responsible lender, so the sooner you ring them the better. They understand that everyone’s circumstances are different, so if they can discuss your situation with you, you’ll get a better understanding of what is possible.

Unfortunately, if you find that you need to extend the length of time that you have taken out your loan for, this is not possible. 118 118 Money set their loan term lengths at the beginning of the loan and cannot change these. You can shorten the term length, but they are unable to extend the loan beyond the original term length.

What is APR?

Annual percentage rate – or APR – is a percentage that shows the total cost of taking out a loan. APR includes the interest rate and any additional costs associated with taking out the loan, such as admin fees etc. As APR is an annual figure, it gets averaged out over the entire year.

Because APR is expressed as an annual figure, some shorter-term loan products have APRs that are in the hundreds or thousands. This is, of course, misleading. You won’t ever get close to reaching the APR listed because short-term loan products are designed to be paid back over the course of a couple of weeks or months. This means that you’ll pay relatively high interest, but it won’t work out to be a lot of money.

APR is not the same as interest rate

Interest rate and APR are not the same things, which is important to know when looking for a loan. Interest rate shows the rate at which interest gets applied to your loan, without any other charges taken into account.

Lender in Focus 12.4: 118 118 How repayments work and APR

APR includes these extra charges, so if the loan has expensive fees, this can make the APR appear a lot higher than the interest rate. For this reason, APR is often higher than the interest rate, to reflect the additional fees that are applied by the lender.

What is representative APR?

The APR that goes on your loan is inclusive of the interest rate you pay, and the interest rate is often determined by how responsible you are as a borrower. Lenders will often look at your credit history to determine this. If you are a responsible borrower, they will typically offer you a lower interest rate than a borrower with a bad credit history.

Because the interest rate is based on your credit history, different people get different interest rates and therefore different APRs. This can cause the cost of a loan to be a lot higher for some people. For this reason, adverts will usually show a ‘representative APR’, so that any potential applicants know what the average cost of taking out that loan would be.

In order to be called a representative APR, at least 51 percent of applicants must receive that APR upon application. However, this does not mean that all borrowers will get the representative APR, but it is a good estimation of how much that particular loan will cost.

How does APR work with 118 money?

How does APR work for 118 118 Money?

118 118 Money offers a representative APR of 99.99% on their loans. This is comparatively higher than other loan providers.

Before you take out a loan of any kind, it is wise to compare the representative APR of your prospective lender with others on the market. We’ve picked some of the lenders on the market and compared their representative APRs in the below table.


Representative APR

118 118 Money


Everyday Loans






118 118 APR Final Thoughts

The 118 118 APR (representative) is much higher than other providers and they also don’t allow a repayment term that is quite as long. For example, Amigo offers a repayment term up to 60 months, whereas 118 118 Money’s repayment term only goes to 24 months. This means that if you need a loan for a longer period of time, 118 118 Money may not be able to meet your requirements.

Got any other questions about 118 118 Money? Leave us a comment below, or chat with us on Facebook or Twitter. Remember that if you’re stuck in a financial emergency, you can always apply for a loan online through Cash Lady – we’re here to help you.