StepStoneCredit short term loans review September 2019
StepStone Credit offers a line of credit of up to £500 for a fixed period. Unlike traditional short-term lenders which require set monthly payments, you can withdraw and repay as much of your loan as you like, as often as you like, during your agreed term.
StepStone Credit is a direct lender (not a broker) with a slightly different take on short term lending. Its credit facility offers instant and flexible access to money on the go, through its App or website. Subject to a credit limit, you’ll be able to decide how much to borrow and when to borrow it, without having to apply each time you need to borrow. Interest is charged only on the funds you’re borrow, on the days you borrow, so you could save money if you can afford to pay your loan back quickly.
What is a line of credit?
A line of credit is an ongoing credit facility, with agreed limits. Examples include an overdraft or a credit card. Unlike a loan that’s issued as a lump sum and paid off over a fixed period, a line of credit can be accessed whenever you need it, and you can borrow as much or as little as you like, subject to an agreed maximum. You can also pay the money back when it suits you, subject to agreed minimum repayment conditions.
The advantage of a line of credit is that it’s there when you need it, and you only borrow what need for the time that you need it. This can work out cheaper than borrowing a lump sum over a set period. However, the disadvantage of a line of credit is that the ease and flexibility can lead you to borrow over longer terms than you might have otherwise, or even simply to borrow when you might not have otherwise.
Key features of a StepStone Credit facility
The StepStone Credit facility lasts for 3 months – after this point you’ll need to agree the facility with StepStone Credit again.
Borrow from £200 to a maximum of £500. Draw down what you want within your agreed limit, when you need it. The maximum amount you are offered will be based on the lender’s criteria including your income, credit history and ability to afford the repayments.
Fast payment. Once you are approved for a loan, you can expect to have the line of credit available to you within 30 minutes.
Borrow for up to 114 days. Withdraw and pay back as little or as much of your loan as you like within your agreed term. Your account will stay open if you pay back the money early, making it available to borrow again within your set term.
Fixed, high interest rates. With interest charged daily at the maximum allowed by the Financial Conduct Authority (FCA), this is realistically a very expensive way to borrow money.
Pay back the amount you want as and when you want. You’ll have flexibility over repayments, within the term of the credit facility. However the longer you borrow for, the more you’ll pay in interest.
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 does StepStone credit hold up against the competition?
Table: promoted deals, sorted by total payable
Use the table below to estimate the cost of the loan that you have in mind. We compare loans from a range of popular short-term lenders. Remember that each lender sets its own min/max loan amounts and terms, and its own eligibility requirements.
How much do you need to borrow?
How long do you need to borrow for?
Important information: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
We compare payday/short-term loans from
Is high-cost, short term borrowing a good idea?
Short term loans offer a quick solution when you get into difficulty with your finances, but they are a very expensive method of borrowing. They should therefore only be considered as a last resort. Short term loans are unlikely to solve your money problems in the long term, and aren’t a good idea for borrowing over longer periods, or for sustained borrowing.
Before you apply for a short-term loan, make sure you have considered 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. If you’re struggling to pay a bill, then try talking to your electricity, gas, phone or water provider to see if you can work out a payment plan. Read more about alternatives to payday loans at moneyadviceservice.org.uk.
How does a StepStone Credit loan work?
Apply for a line of credit with StepStone Credit by filling out the simple application form on the website. You will be asked to provide personal details as well as financial and employment information.
StepStone Credit will ask for your internet banking details, so it can check your statements and ensure you can comfortably afford to make the repayments.
Once you are approved for a loan and your account is opened, you can withdraw and repay funds up to your agreed limit as often as you like within your set term.
At the end of the term, StepStone will make a final automatic repayment from your debit card for all of the outstanding balance owed. Once this balance has been successfully paid, your credit facility will be closed.
How do I pay back my loan?
Like most short-term loan providers, StepStone Credit will use a Continuous Payment Authority (CPA) to collect the final repayment from your bank account on your agreed date.
What is a Continuous Payment Authority (CPA)?
With a CPA you give a company permission to withdraw money from your account on a regular basis.
CPAs differ from a direct debit 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/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?
You should only apply for a loan through StepStone Credit if you are certain you can meet the repayment terms. You must also:
Be a UK resident.
Be at least 18 years old.
Have a UK bank account with online banking facilities.
As part of the application process, StepStone Credit will conduct a financial review including a real-time review of your bank account statement (by accessing your internet banking) which will help to determine if you can afford the repayments.
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
Yes, StepStone Credit will contact a credit reference agency to determine your suitability for a loan. Each application you make will leave a footprint that will remain on your credit record.
This gives StepStone Credit reader-only access to 90 days of your bank account history. It helps the lender to make its decision on your application, by assessing whether a line of credit is affordable and sustainable for you. StepStone Credit will look to verify your income and outgoings by checking your bank statements.
Once your account has been approved and opened, you will be able to draw down funds as and when you require. You can do this through the App or the Client Zone on the website.
No, your StepStone Credit facility remains open for the agreed term of up to 114 days regardless of how many times you draw down and pay the money back. You will only be charged interest on the funds you are using, therefore it will save you money to pay it back as quickly as you can.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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