In a Nutshell: With payday lenders in the UK charging increasingly high interest rates, borrowers are turning to alternative means when they need access to short-term credit. Lending Stream is one such platform, offering streaming loans with up to six months to repay. Application for a loan is simple, and once approved, the money is typically transferred to your bank within 90 seconds. Borrowers who choose Lending Stream can also repay their loans early without penalty or fees. It’s a straightforward way for someone with less-than-perfect credit to access emergency cash through more affordable means.
You likely know the feeling. You’re managing to keep your head above water and can finally meet all of your financial obligations, when … wham! You’re hit with an unexpected major expense.
Perhaps you turn the key and your car refuses to cooperate, or your smartphone leaps to its death from a balcony, or you just can’t ignore that aching tooth any longer. Whatever the culprit, you need fast, affordable access to cash.
These types of unexpected expenses can happen to anyone, but when you have poor or no credit, it can mean a potentially devastating financial setback. Payday lenders are an option, but can you really afford those exorbitant interest charges? Borrowing from friends or family can sometimes work if you really need the extra pressure piled on and want to risk some awkward holiday meals.
For those seeking another option in accessing the money they need, Lending Stream provides a competitive alternative to high-interest payday reloans — one where borrowers have up to six months to repay what they take out.
As one of the top three alternative lenders in the UK, Lending Stream even lets borrowers pay off their loan early if they’re able, with no penalties or adverse impact. By filling out a straightforward online application, or even using a convenient mobile app, you can have funds transferred to your bank in seconds.
We recently spoke with Mark Fiander, VP of Marketing and Customer Experience at Lending Stream’s parent company, GAIN Credit, about the popular service and how it works.
“The Lending Stream brand has been growing significantly over the last few years — certainly since regulations were tightened in 2012,” Fiander said. “So, regulation somewhat leveled the playing field in our favor. We had always looked at underwriting and affordability — so it meant, in essence, that everybody else had to raise their game to our standard.”
This practice of looking out for borrowers and doing the right thing by them has helped Lending Stream achieve a Trustpilot TrustScore rating of 9.4 out of 10. Excellent customer service is a key component of the company’s success, and many clients come back again and again when they need a loan to cover unexpected costs. Lending Stream charges no additional application or processing fees, so borrowers know exactly what they’ll be paying for their short-term credit.
How Six Months to Repay in Installments Beats the Payday Lending Model
Traditional payday loans have, until recently, been the primary means of access to fast cash for many UK borrowers with little or no credit. They provided a way for those in desperate need of emergency funds to get an advance on their earnings. But the requirement to pay back the full loan, plus interest and fees, within a month often placed borrowers in a vicious cycle of needing a new loan to pay back the previous one.
Lending Stream, in contrast, gives borrowers up to six months to repay their loan, and at installment terms that are manageable. Also, unlike with other lenders, there are never any hidden fees or charges that turn up by surprise.
“We’ve never done payday loans,” Fiander said. “If you need £300 this month, why would we think you could pay back £400 next month? From an affordability point of view, that’s just very difficult. So we think a six-month loan that you could repay at any time is much more sensible.”
First-time borrowers with Lending Stream can apply for a loan in any amount from £50 to £800. If you have borrowed from Lending Stream in the past and your account is in good standing, you can apply for a loan amount of up to £1,500. Applicants must have a valid bank account to transfer funds into, and a valid debit card that can be used to make the monthly installment payments.
Because Lending Stream wants you to be successful in paying back your loan on time, the company works with applicants to ensure the amount they apply for is within their budget. If the loan amount you request is deemed outside of your ability to manage, you may be approved for a smaller loan. You can find out more about eligibility and how it works on the Lending Stream website, www.lendingstream.co.uk.
Repayment of a Lending Stream loan is made on a payment schedule, with the exact amount known and scheduled in advance. Payments can be deducted automatically or can be made individually from the account via the website or mobile app.
A Quick Application Process and Fast Access to Funds
Applying for a streaming loan with Lending Stream is a simple process. Whether you use a computer, laptop, or the company’s mobile app, it usually takes no longer than 10 minutes to submit. Be sure to have your banking and employment records available, and check the accuracy of your application to avoid any delays.
Once submitted, each application goes through a proprietary algorithm, taking into account a variety of factors that go beyond the applicant’s credit rating.
“We do use credit reports and the traditional credit bureaus, but that’s really just one element of what we do when considering an application,” Fiander said. “I think we have what is probably the best underwriting team in the industry.”
An applicant is given a rapid loan decision and told how much they are approved to borrow. When the applicant agrees to the terms, the money is transferred to the borrower’s bank— usually in less than 90 seconds. It really is as simple as that.
A Mission to Reduce the Cost of Credit for the Underserved
In case it isn’t clear by now, Lending Stream is a different type of short-term lender. The company operates under the philosophy that anyone can suddenly need quick access to emergency funding. Often some of society’s most vulnerable can have the biggest need for these loans, yet they may be among the ones most likely to be denied access.
Just because someone has had credit trouble in the past, doesn’t mean these problems should follow them forever. The Lending Stream approval process takes into account an applicant’s current financial position, including earnings and their ability to repay. Any UK resident who is at least 18 years old, in regular employment, and earning at least £400 per month is eligible to apply.
Another way Lending Stream stands out from other lenders is that it’s willing to work with clients who need some flexibility in making a payment. Customer service representatives at Lending Stream can be reached by phone and can help with changing a payment date or even coming up with an affordable repayment plan.
Perhaps Fiander put it best when he stated simply, “Our mission is to reduce the cost of credit to the underserved.”
Through its unique lending model, Lending Stream is doing just that and helping consumers bridge the gap when they need convenient access to funds.