Benefits

• no long term commitment, repayment is over three instalments
• convenient online application form, apply in your own time
• small sum credit, up to £500 for new customers
• provisional decision based on thorough checks being carried out
• direct credit to your bank account
• legal right to settle early in full or in part during term of loan
• legal right to give notice to withdraw within 14 days and repay with accrued interest within 30 days of giving notice
• payment is taken from your debit card details supplied on application, you can cancel the ongoing authority (but you will need to provide an alternative form of payment to avoid going into arrears)
• used properly may help manage unexpected cash flow situations
• ours is a price capped product, so you will never repay more than double what you originally borrowed, or more than £15 in default fees
• customers with an established and secure repayment record may, subject to additional checks, be able to apply for up to £1,000

Risks

• there may be other, more suitable, forms of credit available to you that meet your needs at this time
• cheaper forms of credit may be accessible to you
• the convenience of the online application means it can be attractive to apply and use the funds for non-essential or frivolous purposes
• although the product is price capped, the interest rate may still be considered “high”
• missed/late payments may attract a default fee of £5 per missed/late instalment if the payment is still outstanding after 7 days of the due date
• if the loan is still in arrears at the contractual end date, default interest may be charged subject to the application of the rate cap
• missed payments are reported to Credit Reference Agencies (CRAs) where these records may be seen by other lenders
• missing payments (that are recorded at CRAs) may make getting credit more difficult in future, or that you cannot rehabilitate your credit history
• other lenders may see evidence of HCSTC on your credit record and this may influence applications for longer term credit eg a mortgage – all lenders have different criteria
• becoming reliant on additional funding rather than taking steps to re-organise your finances
• believing that a short term loan will help you out of financial difficulty – it will not

Our FAQs section contains more information on default fees and how we need you to be open and honest with us if you find you are struggling to repay. However we have prepared some specific FAQs on some of the other risks listed above. Click here for more information