StepStone Credit was a direct lender (not a broker) with a slightly different take on short term lending. Its credit facility offered instant and flexible access to money on the go, through its App or website. Subject to a credit limit, you could decide how much to borrow and when to borrow it, without having to apply each time you need to borrow. Interest was charged only on the funds you borrowed, on the days you borrowed, so you could save money if you could afford to pay your loan back quickly.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
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.
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.
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.
The StepStone Credit facility lasted for 3 months – after this point you would need to agree the facility with StepStone Credit again.
| Product Name | StepStone Credit Account |
|---|---|
| Available Amounts | £200 to £500 |
| New customer maximum | £500 |
| Loan terms | Up to 3 months |
| Soft search eligibility check | |
| Instant decision in most cases | |
| Funding speed | Once you are approved for a loan, you can expect to have the line of credit available to you within 30 minutes. |
| Repayment period options | Monthly |
| Default repayment method | Continuous payment authority |
| Additional repayment methods | Online payment |
| Repay early at any point | |
| Parent company | Hymarc Ltd (no longer regulated) |
| FCA registration number | 683980 (no longer regulated) |
You should only apply for a loan through companies like StepStone Credit if you are certain you can meet the repayment terms and meet the basic eligibility criteria.
| Residency | UK resident |
|---|---|
| Minimum age | 18 |
| Additional eligibility notes | You must have a UK bank account with online banking facilities. |
As part of the application process, StepStone Credit would conduct a financial review including a real-time review of your bank account statement (by accessing your internet banking) which would help to determine if you can afford the repayments.
Like most short-term loan providers, StepStone Credit used a Continuous Payment Authority (CPA) to collect the final repayment from your bank account on your agreed date.
With a CPA you give a company permission to withdraw money from your account whenever it wishes, and to take payments of different amounts without consulting you. Many short-term lenders like StepStone Credit 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. If you do opt to cancel it, however, you should make sure that you still keep up with your repayment schedule by other means.
| Repay early at any point | |
|---|---|
| Repaying early can reduce overall interest | |
| Interest is only applied to days where funds are outstanding |
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.
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.
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