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.
Ferratum short term loans review 2020
Ferratum provides fast and flexible short-term loans of between £300 and £1,000 (£700 for new customers) that you can repay over terms from 2 months to 4 months.
Operating in 25 countries, Ferratum is an online direct lender of short-term payday loans, and is authorised and regulated in the UK by the Financial Conduct Authority.
Ferratum’s aim is to provide simple and transparent short-term loans without any hassle, with a speedy, streamlined process. You can expect a decision within a few minutes of application, 7 days a week. Funds are sent using the Faster Payments Scheme (a banking initiative that aims to reduce payment times) – in less than 2 hours if you’re approved during working hours.
How do Ferratum’s loans hold up against the competition’s?
We compare payday/short-term loans from
Key features of a Ferratum loan
|Product Name||Ferratum Short Term Loan|
|Available amounts||£300 to £1,000|
|New customer maximum||£700|
|Loan terms||2 months to 4 months|
|Soft search eligibility check|
|Instant decision in most cases|
|Funding speed||Ferratum aims to deposit the money in your bank account within just 2 hours if you’re approved during working hours.|
|Default repayment method||Continuous payment authority|
|Additional repayment methods||Online payment|
|Repay early at any point|
|FCA registration number||672537|
How does a payday/short-term loan from Ferratum work?
- Decide on the size of loan you require and when you can realistically pay the money back.
- Complete the simple four-step application process, providing your personal, contact, employment and financial details.
- Ferratum will run credit/affordability checks and within seconds should be able to determine if you’re eligible for a loan and the size of that loan.
- Once approved, your loan is usually credited to your bank account within one hour, but can take a little longer in busy periods. Repeat customers can apply for a new loan by text.
Your loan can then be repaid in two ways:
- Ferratum uses a Continuous Payment Authority (CPA) to collect your repayments on the due date or monthly instalment dates you have chosen.
- You make a bank transfer to Ferratum, or repay any amount by telephone.
What is a Continuous Payment Authority (CPA)?
CPAs differ from a direct debit because you give the company being paid permission to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you. Most payday/short-term lenders will use a CPA to collect your repayments. You can cancel this at any point by either consulting with your loan provider or your bank.
What are the eligibility requirements?
To be eligible for a Ferratum loan, you must meet the following criteria.
|Additional eligibility notes||You must be employed, with a regular income.|
You must have a mobile number and email address.
You must have a UK bank account and a debit card.
Changing you loan: Additional borrowing options and early repayment
|Option to change repayment date|
|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||0151 601 8611|
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.
Is a payday loan a good idea?
Payday/short-term loans from companies such as Ferratum are a very expensive method of borrowing and may not solve your money problems in the long term. They aren’t a good idea for borrowing over longer periods, or for sustained borrowing. Before you apply, make sure you have considered other options carefully. Is the expenditure that you’re planning essential? If you can defer a purchase then you could save yourself money in the long run. Read our guide to payday loan alternatives.
Frequently asked questions
Read more on this topic
Buffa short term loans review Buffa offers quick and easy short term loans, but with high rates and limited terms.
Updraft loans Updraft lets you avoid the cost of expensive overdraft fees by giving you a low cost loan when you overdraw on your bank account or credit card.
Uploan short term loans A "big sister" company to the better-known Peachy, Uploan offers small loans over terms of up to a year, to cover one-off expenses.
247Moneybox promo codes 247Moneybox offers fast, convenient loans for when unexpected expenses crop up. Check if you could make a saving with our codes.
Loans like Credio Credio was a popular source of short-term credit online until the lender stopped issuing loans in 2018.
Cheque cashing If you need to cash a cheque, it can take three days to clear it with a bank. Cheque cashing services give you immediate access to your money.
Lending Stream loan calculator Considering a short term loan from Lending Stream? Use our calculator to work out how much it could cost you plus how much you could save by repaying early.
Sunny loan calculator Considering a Sunny short term loan? Use our calculator to work out how much you'll pay back. You can also compare Sunny against the competition and make sure you're getting the best deal.
Compare short term loans of £50 to £1,000 Compare live rates from a range of popular lenders on loans over two months or more.
Hastee review March 2020 An affordable alternative to payday loan, Hastee Pay's salary advances can be a lifesaver if you need to meet an unexpected expense.