Neyber review December 2019
Borrow money at a competitive rate and have the repayments taken directly from your salary
If you need to refurbish your kitchen or buy a new car, you may be considering a personal loan. However, getting the great rates advertised by traditional lenders and big banks isn’t as easy as they make it sound, so it may be a good idea to take a look at employee loans instead.
Neyber offers employee loans that are very similar to personal loans, but since the repayments are taken directly from your salary every month, it says it’s able to offer more competitive rates than traditional lenders. If you’re one of the lucky employees whose company has jumped on the salary finance bandwagon and joined Neyber, it’s certainly worth having a look at what it has to offer.
Neyber becomes more competitive when your credit score isn’t great (maybe simply because you don’t have much of a credit history) and you’re having troubles securing a good deal on a traditional loan.
Neyber also offers a service that allows you to automatically save money by setting aside part of your salary before it even reaches your account. However, unlike some of its competitors, it doesn’t do salary advances (which allow you to withdraw part of your salary before the end of the month). You can’t borrow small amounts either, so it’s more an alternative to personal loans than to payday loans.
How does it work?
Neyber offers two types of services: borrowing and investing.
On one hand, borrowing money with Neyber is similar to borrowing money with a traditional lender. You apply, go through a credit check, are offered a certain interest rate and pay the loan back in fixed monthly instalments. However, since the repayments are taken directly from your salary, with Neyber you can get a decent rate even if your credit score is less than perfect.
Neyber has three types of borrowing products:
- Neyber loan. That’s the standard option. You can borrow between £2,000 and £25,000 for up to 5 years, and there are 4 rate tiers that depend on your credit score. If your credit score is pretty much perfect, the rate won’t be much cheaper than what you’d get with your bank. However, if you don’t have much of a credit history or have missed some payments in the past, it can be a competitive option.
- Partnership loan. This is for people whose credit score isn’t good enough to get a standard Neyber loan. You can borrow between £500 and 20% of your gross annual salary for 1-3 years.
- Debt consolidation. This basically works like the standard Neyber loan, but if you already owe money to other creditors, Neyber may be able to settle your debts for you. At that point, you’ll only have to pay Neyber back, potentially at a better rate/with lower monthly payments.
Neyber has partnered with Smarterly, a company that specialises in workplace ISAs, to allow you to automatically put aside part of your salary every month. Since the money doesn’t even reach your current account, you’re not tempted to spend it.
You can put your savings in a lifetime ISA, in a stocks and shares ISA, in a junior ISA or in a regular investment account, choosing between a range of investment options. There’s a 0.40% annual platform fee and other fees may be charged by the fund managers.
Neyber says cash ISAs are coming soon, but for now it doesn’t do standard savings accounts, so you should only consider this option if you’re prepared to invest your savings. Don’t forget that the value of investments can go down as well as up so you may not get back the money you invest.
Pros and cons
- Normally cheaper than traditional loans
- You could be eligible even if your credit score isn’t perfect
- No early repayment fees if you want to settle early
- Offers a debt consolidation option
- A good range of ISA accounts to save money automatically and then invest it
- It doesn’t do salary advances and can’t help much if you only need a little extra money to get you to the end of the month
- It doesn’t do regular savings accounts (you can only invest your savings)