Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
How do Cash Converters’ loans compare against other lenders’?
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What's in this review?
- How do Cash Converters' loans compare against other lenders'?
- Cash Converters loans overview
- How do Cash Converter loans work?
- How much does it cost?
- Pros and cons of Cash Converters loans
- Am I eligible for a Cash Converters loan?
- Additional borrowing options and early repayment
- Should I take out a Cash Converters short-term loan?
- Frequently asked questions
Cash Converters loans overview
Best known for its bright yellow high street pawn shops, Cash Converters offers a range of services for people in need of fast finance, and this includes short-term loans and cash advances.
When it comes to short-term loans, Cash Converters is actually acting as a broker on behalf of Sunny (Elevate Credit International Limited). Cash Converters receives commission from Sunny for this but does not charge a fee to its customers for the service.
|Product Name||Cash Converters Short Term Loan|
|Available amounts||£100 to £1,000|
|New customer maximum||£1,000|
|Loan terms||1 month to 6 months|
|Soft search eligibility check|
|Funding speed||Cash Converters says that applications are processed 24 hours a day, every day, and transfers are usually made within 15 minutes of approval. In some cases, for larger loans, funding may be the next working day.|
|Repayment period options||Monthly|
|Default repayment method||Continuous payment authority|
|Additional repayment methods||Online payment|
|Repay early at any point|
|FCA registration number||673771|
How do Cash Converter loans work?
- Decide how much you would like to borrow and the term over which you can afford to pay it back.
- Click the “Let’s get started” button and fill out the simple application form with contact, address, employment, outgoings and bank details.
- Cash Converters will perform a credit and affordability check on you to ensure you can afford to repay the loan.
- If approved, you will be asked to sign your electronic loan contract and the funds should reach your bank account within 15 minutes.
- Like most short-term loan providers, Cash Converters uses a Continuous Payment Authority to collect the money on your agreed repayment dates.
How much does it cost?
As with many short-term loans, the cost of your Cash Converters loan will be determined by how much you borrow and the length of your loan term. Interest on Cash Converters loans is charged daily, but interest is capped at 0.8% per day.
Loan amount: £200
Loan term: 6 months (with monthly repayments)
Interest rate: 292% fixed p.a.
Representative APR: 1,281%
Total cost: £381.89
Pros and cons of Cash Converters loans
- No ongoing fees
- Funding within 15 minutes
- 5-day interest-free cancellation period
- High rates
- Can only borrow up to £1,000
Am I eligible for a Cash Converters loan?
You should only apply for a Cash Converters loan if you are certain you can meet the repayment terms.
Cash Converters states it will consider applications from customers who do not have a good credit rating, and that if you pay back your loan in full and on time, you could improve your credit history.
You must also meet the following requirements:
|Additional eligibility notes||You must have a bank account and debit card, and a mobile phone.|
Additional borrowing options and early repayment
|Repay early at any point|
|Repaying early can reduce overall interest|
|Interest is only applied to days where funds are outstanding|
|Multiple loans allowed at the same time|
|Phone number||0800 7315 444|
Should I take out a Cash Converters short-term loan?
If you’re reading this, then chances are you’ve found yourself in financial difficulty of some kind. A short-term loan could offer you a quick, temporary solution, but it’s a really expensive form of borrowing. What’s more, the lenders themselves normally admit that their loans simply aren’t the answer for longer-term or regular borrowing, or for people with serious debt problems.
So before you apply for a short-term loan, it’s crucial to take a moment to ask your self a few questions: Is the expenditure that you’re planning absolutely essential? Could it be deferred? Have you thought about alternatives to short-term loans? If you’re struggling to pay a bill, then try talking to your utility provider to work out a payment plan.
There’s a wealth of useful information about managing debt and alternatives to short-term loans at the government’s moneyadviceservice.org.uk.
Did you know?
In 2015 the Financial Conduct authority (FCA) capped interest and fees on all high-cost short-term credit loans at 0.8% per day.
They additionally capped all default charges at £15 and the total cost (interest, fees) of loans at 100% of the original sum. This means you’ll never have to pay more than double the amount borrowed.
Frequently asked questions
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