If you have ever been stuck in a financial rut, you might appreciate the value of short term loan providers like Uncle Buck. The lender has a reputation for fast loan processing, even for poor creditors.
But before you rush to sign up for a loan on the platform, how well do you understand the service?
Our comprehensive review of the platform takes a look at everything you need to know before applying for a loan here.
Read on to find out its features, highlights and downsides. With this information at hand, you can make an informed choice on whether or not they are the lenders for you.
Uncle Buck is a direct lender who offers short term installment loans ranging from £200 to £1,000 for periods ranging from 4 to 6 months. They charge high interest rates but offer fast approval and funding, even for bad creditors, based on affordability.
Uncle Buck is a partner of My Financial Broker and has been in operation since 2004. The lender is regulated and authorized by the Financial Conduct Authority (FCA). They function as direct lenders, providing short term loans to residents of the UK.
Pros and Cons of an Uncle Buck Loan
Pros
They are a direct lender and therefore what you see is what you get
There are no fees charged for prepayments
You can get funding within 1 hour if you apply within a stipulated time frame
In case you repay your loan early, you may qualify for an interest rebate
Charges a lower late payment fee (£5) than the statutory maximum of £15
Payouts take place 7 days a week
If they decline your loan application, they request for approval to transfer your details to partner lenders or brokers who may accept the application
There are no hidden costs
Cons
They have plenty of negative customer reviews online
Loan limits are quite low
First-time customers can only access a maximum of £500
Rates are considerably high
No loan extensions or rollovers
How does an Uncle Buck loan work?
Uncle Buck offers loans ranging in amount from £200 to £1,000. While the typical payday loan is repayable in 30 days, the lender differentiates itself by offering longer terms. You can take out a loan from this platform and make repayments in installments for between 4 and 6 months.
As such, their loans come with much higher flexibility and breathing room than traditional payday loans.
Another highlight is that it is a fully online operation. Therefore, you get to make your application online and usually, you can receive a decision instantaneously. Further enhancing the convenience is the fact that the decision will normally appear on the screen and not via email.
That makes it easy to access it and saves on time, which can be a big deal if you are dealing with a financial emergency.
If you make your application between 7:00 AM and 7:00 PM, you will usually be in a position to access funding within one hour. However, the duration may vary, depending on whether or not your bank supports faster payments.
For applications made outside of this timespan, you will usually get your funds on the next day, if you are successful.
You have the option of repaying your loan early and will not have to pay any penalties for this, as is usually the case with some lenders. In fact, making an early repayment can lead to significant savings on interests.
Though the maximum amount you can borrow is £1,000, as a first-time borrower, you can only qualify for £500. But once you repay your first loan within the required time and create a good trust rating with the lender, you can now access the full loan limit.
Note however that in order to qualify for this full limit, your financial situation should not be worse off than at the start.
Some of the factors that the lender will consider before approving your loan include your credit score and if you have poor, fair or good ratings. Note that you can access a bad credit loan on the platform if your rating is poor or if you have none at all.
The loan will however have a higher interest rate and little flexibility than if you had a better rating.
But in addition to the credit rating, they will also analyze your financial position, looking at your monthly income and expenses. Based on this data, they will be in a position to determine how much you can actually afford to borrow and repay successfully every month.
In case you qualify for a loan with Uncle Buck and get funding, you can choose your preferred repayment dates. While some borrowers choose to make repayments on the last day of the month, others may choose the 25th day, which is when they receive their salaries.
No matter what repayment date you choose, the lender will collect payments using what is known as a continuous payment authority (CPA). This is a convenient way of creating recurring payments.
It eliminates the need to make manual repayments as the lender will have the authority to collect funds directly from your account on the repayment due dates. You do not need to make any calls to facilitate this. And you can pause the recurring payment or even change the due date. You will simply need to contact either the bank or the lender for this.
Before applying for a loan with the lender, keep in mind that short term loans usually attract higher interest rates than traditional loans. They are therefore ideal for emergency situations and not as a regular financial option. While it is advisable to use such a loan to pay off unexpected bills, it is not a good idea to use it to pay off another debt.
In case you are unable to qualify for a loan from Uncle Buck, they may, with your approval, pass your details to a third party lender or broker. These could help you find a loan or lender better suited to your needs and circumstances.
You might apply for a loan on the platform in the future. But note that in order to get a different response, your circumstances need to have changed for the better. They do not charge any fees for this service but may receive a commission if the transfer is successful.
The lender does not offer loan extensions or rollovers in the spirit of responsible lending. They believe that this can lead to severe debt problems.
What loan products does Uncle Buckoffer?
Uncle Buck offers short term installment loans. These differ from the traditional payday loans in that they are repayable in installments over a longer period of time.
What other store services does Uncle Buck offer?
Uncle Buck does not offer any other store services.
Uncle Buck Account Creation and Borrowing Process
Creating an account and borrowing from the lender is among the highlights of the platform. Before you go through the actual application, the site has a loan calculator which you can use to assess the cost and terms of the loan beforehand.
1. Simply enter your preferred loan amount, loan term and preferred repayment date.
It will give you an estimate of the total loan cost and how much you will need to pay monthly. Based on this information, you can choose whether or not to proceed with the application.
2. In case you decide to proceed, you will need to provide your personal information, employer details, bank details and the history of your address.
3. Next, you will also need to enter income and expenditure details.
Once the lender assesses the application for creditworthiness and affordability, you will get an almost instantaneous response.
It’s essential to be cautious during the sign up process for these products. This is because you can end up owing two to three times what you borrow on the longer-term loans, and many have difficulty repaying the short-term loans without reborrowing.
Eligibility Criteria for Uncle Buck Loan
Qualifying for a loan from Uncle Buck is not at all difficult. Here are some of the requirements you need to meet:
Be at least 18 years or older
Be employed
Be a full-time resident of the UK
Have a regular income
Your salary should be paid directly into your bank account
Have a valid debit card for the bank account in question
Have a valid email address
Have a valid mobile phone number
You must not have any IVAs, management plans or bankruptcy
Information Borrowers Need to Provide to Get Uncle Buck Loan
During the application process, here are some of the details you will need to provide:
Employment details
Income information
Credit history
What countries are accepted for Uncle Buck loans?
Uncle Buck accepts borrowers from all over the UK.
What are Uncle Buck loan borrowing costs?
Uncle Buck is a high cost short term lender charging considerably high fees than traditional lenders. Take a look at some of the rates you can expect from the lender:
Late payment fee – £5
Daily interest rate – 0.8%
Maximum APR – 1,249%
Arrangement fee – nil
Early repayment fee – nil
Representative Example:
Loan amount – £500
Full repayment amount after 4 months – £824.99
Full repayment amount after 6 months – £985.02
Uncle Buck Customer Support
Uncle Buck has mixed reviews online. It gets a rating of 7.5 out of 10 on Trustpilot from a total of 1,697 reviews. At least 69% of customers rate its services as ‘Excellent,’ but the average rating is ‘Great.’
While some hail its friendly service, others complain that they are very unpleasant dealing with complaints. Notably though, they have taken their time to respond to almost every review on the platform, which is a good sign.
Is it safe to borrow from Uncle Buck?
The lender is a regulated and authorized entity under the FCA. Furthermore, it employs the necessary measures on the website to keep your information and data secure. As a direct lender, they do not share your information with third parties.
But in case they decline your application, they request for approval to share details with third party lenders to get an alternative source of funding. That is a sign of responsible lending and shows consideration for user data privacy.
Uncle Buck Review Verdict
Based on the above information, Uncle Buck seems to be a reliable lender offering borrowers some degree of flexibility. Unlike payday loans, their installment loans are repayable over a longer period. They accept both good and bad creditors based on affordability.
While it may be disadvantageous that they do not accept rollovers and extensions, this is understandable as it encourages responsible lending.
And though they have plenty of negative reviews online, they take time to respond, showing a willingness to address customer concerns.
Overall, they can be said to be a good emergency funding option when there are no other cheaper alternatives.
FAQ
For what purposes can I use a loan from Uncle Buck?
You can use your loan for any purpose you deem fit. However, note that this type of loan is a lot more expensive than the traditional loan. Therefore, the best use of it should be a financial emergency such as home or car repairs or other unexpected bills.
How much should I borrow?
You can access a maximum of £1,000 if you have borrowed from the platform and made repayments on time in the past. But if it is your first time, the maximum is £500. Note that you should not necessarily borrow this maximum. Rather, it is advisable to borrow what you need and can repay comfortably.
How long should my loan term be?
You can repay your loan in 4 to 6 months. However, if you find that you can repay in a shorter amount of time, this would be advantageous as it would save on interest and reduce total repayment amounts.
What is a continuous payment authority?
A CPA is a provision you make to allow a lender to withdraw money directly from your account on a regular basis. They can take varying amounts without consulting you.
What should I do if I change my mind after getting the loan?
If you change your mind after the funds are in your account, you have up to 14 days to withdraw from the agreement. During this period, you do not need to provide any reason for withdrawal but simply give notice. You will then need to make repayment of the principal plus any interests accrued within 30 days after you give the notice.
Nica specializes in financial technology and cryptocurrency. At her young age, she was already able to work with a Y Combinator-backed startup and another startup founded by Harvard graduates.
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If you have ever been stuck in a financial rut, you might appreciate the value of short term loan providers like Uncle Buck. The lender has a reputation for fast loan processing, even for poor creditors.
