Wallet Wizard is a spin-off business for Credit Corp Financial that targets high risk borrowers with a very high interest rate.
To be exact the Annual Percentage Rate (APR) for new loans from Wallet Wizard effective from 08/12/2016 is 47.8%. The interest rate charged here is simply ludicrous and can be misleading if your loan is over a 24 month period.
If we borrow $4000 from Wallet Wizard over a 24 month period, we’d pay back $2,285.60 in interest, making the total repayments $6,285.60. That’s an effective annual interest rate of 59.8%.
What we also do not like about Wallet Wizard is that they tend to hide the period of the loan deep in the contract, and we’re not joking. Looking at their costs page there is not a single mention of loans over 24 months etc. Yet we see the infamous slider where we chose how much we want to borrow, a box for how often do I get paid, and an example repayment with no indication how long I will be paying this back for.
Wallet Wizard is something you want to avoid and is exactly the reason people find themselves in serious debt unable to pay loans back. Extremely high interest rates make it near impossible.
We’ve approached Wallet Wizard about the high interest rates charged. We gave them a scenario of offering to pay out the loan early and asked for a payout figure and the best price. Wallet Wizard had full intentions of charging the full 59.8% interest despite only being 6 months into the loan and the fact that the risk of the loan had been lowered to 0% for the remaining 1.5 years.
High interest rates are only charged to high risk borrowers to help protect and cover the lender. Why should a borrower who took a loan over 24 months, who has paid back the loan in under 6 months still be hit with the same high interest rate and same payout figure for the full 24 months. It is wrong, unjust and criminal.
If you need to borrow money avoid places like Wallet Wizard, you will only ever come out worse off.
You might be thinking for all the money Wallet Wizard make from a borrower that they might actually have very good customer service, no surprises here. We found that customer service was rude, lacked care for the consumer and also seemed to be an overseas call centre.