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Lending Stream Short-Term Loan: A Last Resort Option
With APRs from 99.9% to a staggering 1271%, Lending Stream is only for emergencies. Borrow up to £1,500, but be wary of the high costs.
The Quick Version
Lending Stream offers short-term loans from £50 to £1,500 with APRs ranging from 99.9% to an eye-watering 1271%. This is high-cost credit intended for emergencies only. If you're considering this option, make sure you've exhausted alternatives like credit unions.
Rates shown are representative. Your actual rate depends on your credit profile. This is not financial advice.
Lending Stream Short-Term Loan
Lending Stream loans are costly and should be a last resort.
The Numbers
According to Lending Stream, new customers can borrow between £50 and £800, while returning customers can access up to £1,500. The representative APR is a staggering 1271%, with a fixed annual interest rate of 292% for a 6-month term. Borrowing £300 over 6 months results in a total repayment of £578.36, which includes £278.36 in interest.
What's Actually Good
Lending Stream does have a couple of upsides: fast approval times and consideration for those with bad credit. Applications are typically processed in minutes, and having a less-than-perfect credit score doesn't automatically disqualify you. It's also FCA regulated, which adds a layer of consumer protection.
The Catch
The major downside is the exorbitant interest rates. With a representative APR of 1271%, this loan is incredibly expensive. It's designed for short-term borrowing, but the total cost can quickly spiral out of control if not repaid promptly. Additionally, failing to meet repayment deadlines can severely impact your credit score.
Who Benefits Most
This loan is best suited for UK residents aged 18+ who have a regular income but face a short-term cash crunch and have no other borrowing options. It's critical to use this as a last resort, given the high costs involved. If you're someone with a low credit score and in need of immediate funds, it might be worth considering, but with caution.
The Bottom Line
If you find yourself in a financial emergency and have no other avenues, Lending Stream can offer a quick lifeline. However, the cost is significant, and it's crucial to have a repayment plan in place to avoid further financial strain.
