SafetyNet Credit Review – Read This Before Applying

If you need money fast, look to payday loan facilities like SafetyNet Credit for a quick fix. From all the financial advice you have read over the years, you know it’s prudent to set aside some cash for emergencies. But what you’ve also learnt is that this is easier said than done.

With a limited source of income, and the possibility of accidents and emergencies occurring, it’s close to impossible to be fully ready for what the world throws at you. But not all hope is lost. Payday loan companies like SafetyNet Credit are here to the rescue.

Speaking of payday loans, we should point out that they have experienced exponential growth in the UK ever since the government, through the FCA imposed regulations. As a result of these regulations, the cost of servicing a payday loan dropped.

So, since you are here, it’s safe to assume you are doing your due diligence. You want to know if SafetyNet Credit is secure, how it works, and if it’s a scam. We seek to answer this and many more questions in this guide.

Here we go.

What is SafetyNet Credit?

It is a payday loan company that operates under Indigo Michael Limited. However, unlike most payday loan companies, it has an excellent proposition. It offers a safety net for its borrowers hence its name ‘SafetyNet’. If you opt to provide the company with access to information about your current account, SafetyNet creates a secure connection to the account and uses the connection to track your balance and assess your credit. What is the benefit of doing this?

Well, it allows the company to lend you money, and you only make repayments when you can afford to. This is a unique selling point since with most companies, they fix your emergency only to become the emergency a few weeks down the line.

Given the ongoing and ‘open’ nature of the agreement, financial experts refer to it as a revolving line of credit. If you think about it, it’s ideal for getting cash for the business to fulfil and order and pay it back in a few days or weeks.

But even with the innovative and creative approach, its core, it’s still a payday loan with expensive interest rates and low loan limits.

Pros and Cons of SafetyNet Credit

How does SafetyNet Credit Work?

When you apply for a loan on SafetyNet Credit, you will need to provide your name, account details and physical details (the standard requirements). But in addition to this, SafetyNet Credits requires that you give access to your bank account. Now, before you freak out, as we have mentioned before, this does not mean that you provide them with the internet banking username and passwords. No, instead, they use open banking to read and analyse the transaction data on your account.

So what is open banking? You have probably heard it in connection with banking apps claiming to use it to provide you with better financial management and deals but you were not clear on how it works.

Open banking is simply a list of regulations that date back to January 2018. They allow third party financial providers to access basic data on your account. The process only happens with your authorisation and under the protection of UK banking laws.

SafetyNet Credit uses this connection to achieve several things:

• Provide you with bank balance top-ups in case your account balance falls below the required levels. SafetyNet calls it a Smart Top-up.
• Monitor the account balances to determine when you can afford to make a repayment
• Help in improving your finances with a free financial management tool

But why do they make a big fuss over the Smart Top-Up? Well, because it can save you a lot of money on overdraft fees. You see, overdraft fees are more expensive than payday loans. So SafetyNet Credit offers you an option to save some money. Through the online dashboard, you can set the SmartNet Credit account to send you money when the bank balance goes below a given level.

Repayments

How do you do it? SafetyNet Credit avails two methods of repaying loans: automatic and manual.

• Automatic repayment – to protect you from incurring unnecessary interests, SafetyNet deducts some amount from your account when the bank balance increases. But this does not mean that they take advantage and pay off the loan all at once. The rule is to never leave the account with less than £30 above the overdraft level. This leaves you with just enough money to spend. It also means that if you have less than the £30 above the overdraft level, SafetyNet will not make a deduction. You can always change this value in the settings.
• Manual repayment – Like with normal loans, you can choose to repay the loan in part or in full. This method gives you more control over your finances.

So not that you know how to repay the loan, the question is, how much do you repay every month? The amount you repay varies depending on your loan amount. However, the minimum monthly repayment is displayed on the dashboard and the monthly statement.

The minimum repayment amount is usually 5% of the total amount you owe plus interest. However, this is subject to a £20 minimum rule. This means that if the amount owed is less than £20, you repay the loan in full.

Note you are not limited to the minimum amount. Actually, experts advise that you increase the money to pay it back in a shorter period and reduce the interest rate you pay.

What Loan Products does SafetyNet Offer?

SafetyNet Credit focuses on offering overdraft facilities to individuals. The fact that it checks through your transaction details acts as a safety.

What other store services does SafetyNet Credit offer?

Aside from providing loans, SafetyNet Credit has a free app which it uses to helps you to manage their funds better and to optimise your borrowing.

SafetyNet Credit Account Creation and Borrowing Process

The account creation process is online and takes less than 8 minutes. Also, the application process is free.

Eligibility Criteria

Below are some of the SafetyNet Credit requirements for individuals looking for a loan on their platform.

Information Borrowers Need to Provide to Get SafetyNet Credit Loans

What countries does SafetyNet Credit accept?

SafetyNet Credit is available in the UK.

What are SafetyNet Credit loan borrowing costs?

Being a payday loan, the interest rates are high. SafetyNet Credit charges 0.8% interest per day capped at 40 days. This translates to 292% per annum (variable). The representative is 68.7% APR (variable).

SafetyNet Customer Support

SafetyNet Credit customer support is available on live chat, email ([email protected]), and on the phone (0800 180 8400 – a toll-free number).

On live chat and phone, the customer support is available from Monday to Friday between 8 am, and 7 pm and on Saturday between 8 am and 5 pm. If you choose to use their email, you will get a response within 24 hours.

Is it safe to borrow from SafetyNet Credit?

SafetyNet prides itself in being a reputable company. As such, it does everything in its power to keep the information you provide secure. The company uses 256-bit encryption to secure all information you provide. Moreover, Open Banking technology it uses only affords it read-only access.

And last but not least, SafetyNet Credit adheres to the FCA lending regulations.

SafetyNet Credit Review Verdict

Overall, SafetyNet Credit has done a great job of ensuring that loans are available in a convenient method. The only cons that may raise concerns for most individuals are the high-cost loans and the suitability of regular use. However, if you are always finding yourself getting into unauthorised overdrafts, SafetyNet Credit loan facility can help you save some money. But even then, you should look into other credit options as well.

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