{"id":417335,"date":"2021-10-05T16:33:17","date_gmt":"2021-10-05T15:33:17","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=417335"},"modified":"2026-02-16T14:41:56","modified_gmt":"2026-02-16T14:41:56","slug":"polar-credit","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/payday-loans\/polar-credit","title":{"rendered":"Polar Credit review"},"content":{"rendered":"
Late repayments can cause you serious money problems. See our debt help<\/a> guides.<\/div><\/article>

What is Polar Credit?<\/h3>

Polar Credit is a direct lender (not a broker) that offers a \u201cline of credit\u201d you can use to borrow money quickly, as and when it suits you.<\/p>

A line of credit works like a credit card or an overdraft. If accepted, you\u2019ll have a personalised credit limit and can borrow as much or as little as you need within that, repaying as much or as little as you choose each month (subject to a specified minimum). You\u2019re free to borrow more or borrow again as much as you like, provided you stick to your limit and maintain at least that minimum monthly repayment.<\/p><\/div><\/div><\/div>

Who is behind Polar Credit?<\/h4>

Polar Credit is a trading name of APFIN Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA). APFIN is perhaps better known for offering short term loans through Polar Credit\u2019s sister brand \u201cCashasap\u201d (which also has a bear in its logo \u2013 APFIN has a thing about them, apparently).<\/p><\/div><\/div><\/div>

Polar Credit at a glance<\/h3>
\n \n
Product Name<\/th>Polar Credit Credit Line<\/td><\/tr>
Available Amounts<\/th>\u00a3200 to \u00a32,000<\/td><\/tr>
Representative APR<\/th>68.7%<\/td><\/tr>
New customer maximum<\/th>\u00a32,000<\/td><\/tr>
Loan terms<\/th>Open-ended line of credit<\/td><\/tr>
Repayment period options<\/th>Monthly<\/td><\/tr>
Default repayment method<\/th>Continuous payment authority<\/td><\/tr>
Additional repayment methods<\/th>Online payment<\/td><\/tr>
Repay early at any point<\/th><\/use><\/svg><\/td><\/tr>
Parent company<\/th>APFIN Ltd.<\/td><\/tr>
FCA registration number<\/th>673186<\/td><\/tr>\n <\/tbody>\n <\/table><\/div>

\"A<\/p>

How does Polar Credit work?<\/h3>

You can apply to set up your credit line using Polar Credit\u2019s simple online form. Polar Credit has enlisted the services of Credit Kudos to help it assess creditworthiness and affordability by analysing your banking transaction data.<\/p>

If your application is successful, you\u2019ll be offered an initial credit limit tailored to your financial situation. You may later request to increase or decrease it.<\/p>

For now, there\u2019s no app. You monitor and control your credit line via the online account. When you need money, simply log in and arrange a transfer to your bank account.<\/p>

The amount borrowed accrues interest daily, and you\u2019ll need to make a minimum monthly repayment of either \u00a310 or 5% of the balance at that time (whichever is the larger). Repayments are taken via a continuous payment authority<\/a>, which means you\u2019ll give Polar Credit permission to take the funds it is owed, as and when it opts to do so.<\/p><\/div><\/div><\/div>

Why does Polar Credit want access to my bank account?<\/h3>

Polar Credit analyses your banking transaction data to assess creditworthiness and affordability. To do this, Polar Credit needs permission to view your transaction history, which you can give from your internet banking.<\/p>

Polar Credit does all this with the technical help of Credit Kudos, which is a regulated open banking<\/a> service provider.<\/p>

By doing this, Polar Credit aims to say \u201cyes\u201d to applicants who might otherwise be rejected on their credit score<\/a> alone. Using open banking data to support applications for credit<\/a> is becoming more common in the UK.<\/p><\/div><\/div><\/div>

How much does Polar Credit cost?<\/h3>

There\u2019s no fee to set up and maintain your credit line; you only pay when you borrow. Polar Credit charges a transaction fee of 1.65% each time you withdraw funds, and then charges interest at a rate of 49.9% while you\u2019re borrowing. The interest equates to a daily rate of 0.165%, and the overall cost of borrowing translates to a representative APR of 68.7%<\/p>

Borrow \u00a3250 for 14 days, and it\u2019ll cost you just under \u00a310 (\u00a39.91 to be exact). That\u2019s an initial transaction fee of \u00a34.13 and interest of \u00a35.78 (around 42p per day).<\/p><\/div><\/div><\/div>

Pros and cons<\/h3>
\n
\n

Pros<\/h4>\n