Learnbonds UK

CashFloat Loan Review – READ THIS BEFORE Applying!

04. November 2019

If you find yourself stuck in a rut financially, CashFloat might be the short-term lender to get you out.

But much as you might need cash urgently, it helps to get to know the financier a little better before committing to a loan.

To help you along, we have carried out a thorough analysis of every important aspect you need to find out before signing up.

Our comprehensive review of CashFloat loans will reveal everything you need to know and much more. Read on to find out whether or not it is the ideal service for you.

CashFloat is a highly reputable short-term lender offering three different loan products to suit its different applicants. It has a simple online process for application and offers fast approval and funding. The lender’s rates are among the cheapest in the industry and its customer support is excellent.

What is CashFloat?

CashFloat is a short-term loan provider based in the UK, offering loans that range from £200 to £1,100. It prides itself in easy application, fast approval and immediate payouts.

The company operates under Western Circle Limited, which is a fully regulated entity under the Financial Conduct Authority (FCA).

Its loans specifically target borrowers with bad credit and therefore, it does not focus solely on credit score during application assessment.

As an authorized direct lender, it strives to make the borrowing experience safe as well as hassle-free.

It has a variety of loans for different applicants and flexible terms and their eligibility terms are friendly. We’ll find out more about the platform below.

Pros and Cons of a CashFloat Loan

Pros

  • It is a regulated and fully authorized lender under the FCA
  • Offers fast application and approval process
  • Same day funding available
  • Offers one of the lowest APRs in the UK with daily interests from as low as 0.5%
  • Can connect you to alternative lenders when your application is rejected
  • Has a mobile app for fast funding on the go
  • Has a loan calculator that offers transparency into the fees and rates, letting you make a comparison with other providers

Cons

  • Low loan ceiling
  • Applying for a loan here might affect your credit score as the lender performs a hard credit check

How does a CashFloat loan work?

CashFloat seeks to set itself apart from other lenders in a number of ways. One of the differences is the fact that it assesses borrowers based not only on credit but on affordability. Therefore, bad creditors who have what it takes to pay back the loans can qualify.

Another differentiating feature is the speed at which the provider processes loans. The application and decision-making process is streamlined so as to offer same-day funding. And this comes at no extra charge to the borrower. The only condition is that you apply during work hours.

The platform also encourages borrowers to save money by making early repayments. It therefore does not charge any fees for early payments. At the same time, it offers an opportunity for discussion whenever you find yourself unable to meet the repayment.

Its customer support team is friendly and always ready to help, even by rearranging payments. All you have to do is to make a call before the due date and make relevant arrangements.

If you default on payments without alerting the support team, you will be subjected to a default fee. And the outstanding amount will accrue interests on a daily basis and you will have a maximum of 60 days to make repayment.

Missing payments will not only lead to default fees and interest accrual but will also harm your credit score. Since the provider reports to credit agencies, you might have difficulties accessing funding in the future or find it very expensive with a poor score.

On the website, you will find a loan calculator. Before you apply for a loan, you will have the opportunity to determine the best fit. You can use it to set the amount and term of the loan then assess the repayment amount and determine whether it is suitable or not.

If you find the terms satisfactory, you can proceed with the application process by filling out the application form. After you submit your details, the provider will take anywhere from 1 hour to 3 hours to send you a decision. You will get the decision via email.

In case they need to confirm some details or ask questions before approval, they will call you. And if they approve your loan, you will likely get funding on the same day. Once you get the loan, start arranging for repayments.

These usually take place monthly using a continuous payment authority (CPA). A CPA is essentially a recurring payment under which you allow a company to withdraw funds from a given account on regular basis.

Unlike a debit credit, this provision allows the company in question to withdraw funds any time they want to and to take payments in varying amounts without having to consult you. If you want to cancel the CPA at any time, simply consult the lender or your bank and make the relevant arrangements.

The lender offers specific amounts that you can borrow for specific terms. These are:

  • £200 to £250 – 1 to 2 months
  • £300 – 1 to 3 months
  • £350 to £450 – 2 to 3 months
  • £500 to £600 – 2 to 4 months
  • £600 to £850 – 3 to 4 months
  • £900 to £1,100 – 4 months

If you are a new customer on the platform, you can only borrow a maximum of £500. But if you prove to be creditworthy by repaying the full loan within the required time, you can qualify for the full amount.

Another interesting aspect about the lender is that if it declines to fund your application, it will request for permission to get you another lender. In case you accept the request, you may be able to find funding without having to go through the arduous application process all over again.

Though the official maximum daily interest rate for short-term loans in the UK is 0.8%, CashFloat offers loans from as low as 0.5%. And since it is simple interest, the final amount is lower than would have been the case had they used compound interest.

What loan products does CashFloat offer?

CashFloat offers a variety of loan products to meet the needs of different borrowers. These include:

Short-term Loans

These are online credit facilities with flexible installment options for repayment. The platform notifies borrowers of all upcoming payments in advance. It debits all loans using simple direct debit card options.

Payday Loans 2.0

The platform offers a fresh alternative to traditional payday loans. With this option, you can get your funds as fast as you need and pay back whenever you want so as to save on interests. Apart from its same-day funding feature, the loan also has one of the highest acceptance rates compared to other products on the site.

Money on Demand

You can use the site’s mobile app to access money instantly under the Money on Demand product. It comes in the form of a free download and offers the fastest way to get cash. Moreover, the app uses bank-grade security on the mobile platform.

What other store services does CashFloat offer?

CashFloat does not offer any other store services.

CashFloat Account Creation and Borrowing Process

The account creation and borrowing process on CashFloat is very simple and intuitive.

1. On the homepage of the website, scroll down to find a section entitled “Complete our secure application.”

Start by filling in the loan details which include the loan amount, duration and payday. Next, fill in your personal details starting with your name, date of birth and email address and then your phone and postcode. You will also need to enter your residential details and marital status.

2. Provide details about your monthly income and that of your partner.

Enter any other sources of income as well as the number of dependents you support.

3. After that, you will need to enter your expenses, in terms of shared expenses if at all you share.

These may include your rent, food expenses and transport as well as loan repayments and other credit commitments.

4. Provide your employment details starting with your employment type and title, name of company and industry and the duration.

Provide your work phone number and email as well as the website and postcode among other details.

5. Finally, you will need to enter your bank account details where the lender will provide your funds.

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 CashFloat Loan

Qualifying for a loan on the platform is not at all complicated. Here are the criteria you need to meet:

  • Be at least 18 years old
  • Be a UK resident
  • Have an active UK bank account
  • Be employed
  • Have a regular income

Information Borrowers Need to Provide to Get CashFloat Loan

When applying for a loan on the site, here is the information you will need to provide:

  • Personal details
  • Contact details
  • Residential details
  • Marital status
  • Employment details
  • Income information
  • Bank account information

What countries are accepted for CashFloat loans?

CashFloat offers services in all regions of the UK.

What are CashFloat loan borrowing costs?

CashFloat is one of the cheapest short-term lenders out there. Here is a look at its fees and borrowing costs:

  • APR – 997%
  • Late payment/default fee – £15
  • Arrangement (origination) fee – nil
  • Early repayment fee – nil

Take a look at the representative example:

  • Amount borrowed – £ 500
  • Loan term – 4 months
  • Installments – 4
  • Repayment amounts – £215.81
  • APR – 997%
  • Total repayment amount – £863.24

CashFloat Customer Support

One of the most remarkable aspects of CashFloat is that it provides exceptional services including customer support. You can easily tell from the overwhelming number of positive customer reviews, which is surprising for a short-term lender.

Is it safe to borrow from CashFloat?

Yes. CashFloat is a regulated lender with the FCA and operates a secure website with standard encryption protocol.

CashFloat Review Verdict

CashFloat gains our full recommendation as a reliable and solid short-term financing provider. It is a comparatively cost-effective service provider with a great reputation for good customer support.

It offers multiple loan options, even allowing borrowers to access funding on the go using a mobile app. There are no prepayment fees or application fees. The only fees you may have to pay are default fees.

The application process is simple and straightforward and funding is almost immediate. The only downside is that they will need to check your credit which may impact your score. And the loan limit is also quite low.

But overall, this is a great choice of platform for times when you need quick access to emergency funding.

FAQ

What is the difference between short term and payday loans?

While you can repay short-term loans in installments over a period of time, you would need to pay payday loans as a lump sum on payday. CashFloat offers both types of loans to suit different applicants in various circumstances.

If CashFloat declines my application can I apply again?

Yes. Though you can only have your loan approved if the factor that led to your being declined has changed.

Can I qualify for a loan with bad credit?

Yes. CashFloat considers your credit score as well as other factors and not the score in isolation. To qualify for a loan with bad credit you need to meet the basic criteria outlined. But additionally, you would need to prove that you have steady income to confirm that you can afford the loan.

Is it possible for me to get a loan without a credit check?

No. Among the requirements that the FCA lays out for licensed lenders is to check that the loan will assist an applicant in their current situation. As a responsible lender, CashFloat performs thorough credit and affordability checks on all applicants prior to approval.

If I have poor credit, is it easier to get approved for a smaller or a larger loan?

Though it might seem logical that a poor creditor should apply for a small loan, a larger loan might sometimes be a better fit. Longer term loans are more affordable since they call for lower monthly installments. But at times, smaller payday loans are preferable as they have lower risk potential.

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Nica is a BA Political Science degree holder who fell in love with writing after college. She specializes in financial technology and cryptocurrency. At her young age, she was already able to work with founders who graduated from Harvard, tech startups funded by Y-Combinator, CEOs of multi-million dollar blockchain companies, investment companies in London and many more.

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