Creditstar short-term loans review
If you're in need of short-term financial assistance, Creditstar offers 1-6 month loans of up to £300, or £700 for returning customers.
Launched in 2006, Creditstar is part of the international Creditstar Group and operates in eight countries across Europe. Being international, unlike many of its competitors in this market, Creditstar’s opening hours stretch from 7am to 8pm, 7 days a week including Sundays and bank holidays (you can also manage your account online 24/7). Interestingly, this also means that your repayment dates will not be affected by Sundays and bank holidays.
If you’re using Creditstar for the first time, you can apply to borrow up to £300. Returning customers who have made previous repayments in full and on time can apply for loans of up to £700.
Key features of a Creditstar loan
- Borrow up to £700. First-time customers are eligible to borrow up to £300. Provided you make your repayments on time, you could then be eligible for loans of up to £700. However, please remember that short-term loans are not suitable for sustained borrowing.
- Repay in instalments. Loans are paid back in monthly instalments over terms from 30 days to 6 months.
- Fixed, high interest rates. With high interest charged every day for the duration of your loan, this is realistically an expensive way to borrow money.
- Late repayment fees. If you are late repaying your loan, a default charge of £15 will be added to your balance on the 3rd day after your first missed payment date. Interest will also continue to accrue until you have repaid your loan, up to a maximum of 100% of the amount borrowed. This is also likely to damage your credit record.
- Early repayment. Creditstar will not charge you a penalty for repaying your loan early. This is recommended if you can afford to do so as you could pay less in interest overall.
Compare Creditstar loans
As well as comparing short-term loans with other types of credit, before you apply for a loan, it’s a good idea to shop around and compare a range of lenders.
If you’ve been on the Creditstar website, used the calculator and want to see if you’re being offered a competitive deal, you can use the table below to get an idea of how much the loan that you have in mind might cost from a range of popular providers.
We compare payday/short-term loans from
Should I take out a Creditstar loan?
Payday/short-term loans offer a quick solution when you get into difficulty with your finances, but they are a very expensive method of borrowing. Therefore, you should only consider this as a last resort. High-cost, short-term loans are unlikely to solve your money problems in the long term, and are not suitable for borrowing over longer periods, or for people with serious debt problems. Before you apply, consider other options carefully. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. You can read more about alternatives to payday loans at moneyadviceservice.org.uk.
How does a Creditstar loan work?
- Choose your loan details. As a first-time customer, you are eligible to apply for a loan of up to £300, to be repaid over a period of 30 days to 6 months.
- Fill in the remaining loan application. You will be asked to fill in your personal, financial and bank details. This is necessary to identify you and to run necessary credit checks. Creditstar does not pass on any of your details to third parties.
- Once you have submitted your form, Creditstar will perform a credit and identity check on you. In some cases, a representative might contact you to confirm some details. This enables the lender to make an informed decision on your loan.
- If your application is approved, the funds will reach your account, usually within 30 minutes.
How do I pay back my loan?
Like most short-term loan companies, Creditstar uses a Continuous Payment Authority (CPA) to collect the repayments from your bank account on your chosen dates.
What is a Continuous Payment Authority (CPA)?A CPA is a recurring payment in which you give a company permission to withdraw money from your account on a regular basis.
CPA’s differ from direct debits because they give the company being paid the ability to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you. Most payday loan companies will use CPA’s to collect your repayments, however you can cancel this at any point by either consulting with your provider or your bank.
What are the eligibility requirements?
You should only apply for a Creditstar loan if you are certain you can meet the repayment terms. You must also:
- Be over 18
- Be employed with a regular income
- Live in the UK
- Have a bank account
- Have a mobile phone and an active email address
- Be able to afford your repayments on the agreed dates
Creditstar will not lend to you if you have a bad credit rating, have been declared bankrupt, or been visited by a debt collection agency in the previous 18 months.
Additional borrowing options
You can apply to extend a loan up to 2 times and for between 5 and 30 days. The extension period begins from the original payment date. You will be charged interest on the total amount of time you have the loan for. You will also have to pay a loan extension fee. If Creditstar does not receive this payment before your original payment date, your loan will not be extended. Remember that extending a loan will increase the total charge of credit and may not be a good solution if you are experiencing financial difficulties.
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