If you are facing a financial emergency and are contemplating taking out a short term loan, a provider like Very Merry Loans could come to mind. After all, they have one of the merriest names in the market.
But are they the right lenders for you? Before you sign up for a loan on the platform, you would do well to assess their highlights and downsides.
Our thorough analysis of the platform gives you an opportunity to do precisely that. And by the end of it, you should be able to make an informed choice.
So read on and figure out if Very Merry Loans is the lender for you.
Table of Contents
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What is Very Merry Loans?
Founded in 2013, Very Merry Loans claims to be a non-charging broker. They offer connection services, linking borrowers to potential lenders at no fee. Instead, for every successful connection they make, they get a commission from the lender in question.
According to their site, they only work with lenders who adhere to the strict regulations of the Financial Conduct Authority (FCA).
The service provider is a registered trading name of Payday Ventures Limited, which is registered in England and Wales. Its registered office is in London, England and it is licensed by the Information Commissioner’s Office.
Payday Ventures serves as an Introducer Appointed Representative of T Dot UK Limited, and both are registered and authorized by the FCA.
Pros and Cons of a Very Merry Loans Loan
How does a Very Merry Loans loan work?
Very Merry Loans works as a credit brokerage service provider, linking borrowers and lenders from the UK. On this platform, you can access loans ranging from £100 all the way to £2,000 and flexible repayment terms ranging from 2 months to 12 months.
The loans however differ from traditional payday loans on a number of aspects. First, payday loans usually allow you to borrow a small amount of money. And second, you usually have to repay the borrowed amount with interest on your next payday, hence the name.
But Very Merry Loans seeks to be a little more flexible by connecting you to lenders who offer a little more. The amounts are higher than what you would get with the typical payday lender. And you can make small repayments for up to a year.
Like most payday loans though, they offer fast approval services that allow you to get your funds almost instantly. It only takes a few minutes to approve your application and transfer funds to the bank account you provide.
They make use of a common application form for all applicants which only takes a few minutes to fill out and submit. When you submit your application on the site, you will get multiple quotes from some of the top direct lenders in the country.
That allows you a great deal of freedom to choose the one that suits you best. And if you do not find any of the offers suitable, you are under no obligation to sign up. The opportunity to select offers from multiple lenders is a great provision as it allows you to compare terms and rates before settling on one lender.
And in view of the amount of time it would have taken to undertake a similar comparison, it is also a great time-saver.
Another major differentiating factor between this and other lenders is that services are available round the clock, 7 days a week, even on bank holidays. That is an important feature considering that financial emergencies do not always wait for dawn to break or for the weekdays.
Given that there are lots of lenders on the platform, you stand a much higher chance of approval than if you were applying with a single direct lender. You do not have to have a perfect credit record to access a loan from Very Merry Loans.
While they do consider your credit rating, they emphasize the importance of having a verifiable source of income. Some of the lenders on the platform perform hard credit checks which will impact your score. But others are content to work with soft credit checks that leave no footprint on your record.
But as a responsible service provider, they insist on the need for healthy repayment habits. Repaying your loan on time can help you improve your credit score and access cheaper credit in future. Conversely, poor repayment habits will bring down your score and make a short term loan extremely costly due to penalties and interests.
With an aim to practice responsible lending, the service provider discourages against long term use of these short term loans. They highlight the fact that these are expensive sources of credit and should be used only for financial emergencies and not for long term money management. Additionally, they do not encourage the use of such loan for settling other loans.
If you qualify for a loan on the platform and choose an offer from one of the lenders, you will receive a loan agreement form. On this form, you will find all the details of the loan offering. Read through it carefully to understand the terms of the offering before accepting a loan.
Take time to look at the interest rate, the repayment terms and the late payment policy since things do not always go as planned. In case you find the terms satisfactory, you will need to sign the electronic form and wait for funds to reflect in your account.
While this could take about 15 minutes, it might also take up to 3 days depending on your bank and whether or not it accepts faster payments.
Very Merry Loans Account Creation and Borrowing Process
Creating an account and borrowing from Very Merry Loans is a simple and hassle-free process. Before you get started, you can check out the terms by using the online loan calculator on the site’s homepage (https://www.verymerryloans.com/uk).
1. Specify the amount you want to borrow and the amount of time you need for repayment.
This will give you an estimate of the cost of the loan. You can adjust these figures.
2. Once you find satisfactory terms, click “Apply Now.”
This will take you to the application form where you can start by filling in your personal details. These include your name, phone number, email address, date of birth, marital status and number of dependents.
3. Next, fill in your residence details which include the postcode, house number, home status and date you moved in.
4. The next step involves filling in your employment details starting with status, work phone, industry, employer name and job title as well as pay frequency, monthly income and the date you started.
5. Next, submit your financial details including debit card, bank account number and sort code as well as when you opened the account.
6. Finally, fill in your expenditure information, specifying the amount you spend on various outgoings then create a password for your account and submit the form.
Eligibility Criteria for Very Merry Loans Loan
Qualifying for a loan with this service provider is quite simple. Here are some of the eligibility requirements that they consider:
- Be at least 18 years or older
- Be a legal resident of the UK
- Have a UK personal bank account
- Have a valid phone number
- Have a valid email address
Information Borrowers Need to Provide to Get Very Merry Loans Loan
When applying for a loan from Very Merry Loans, you will need to provide a number of details. These include:
- Phone number
- Marital status
- Number of dependents
- Employer name
- Monthly income
- Pay frequency
- Home status
- Bank details
- Debit card details
- Length of time at residence
What are Very Merry Loans loan borrowing costs?
Very Merry Loans admits that short term loans are costlier than traditional loans. But it does not charge the highest rates in the market. Note that its rates vary significantly from one lender to another, so take your time to compare the offers you receive.
Take a look at its borrowing costs and fees:
- Lat payment fees – up to £15
- Daily interest rates – up to 0.8%
- Loan amount – £250
- Loan term – 3 months
- Total amount repayable – £411.63
- Monthly installments due – £137.21
- Total interest charged – £161. 63
- Annual interest rate (fixed) – 292%
- Representative APR – 1,192% (variable)
Very Merry Loans Customer Support
There is little information online about the broker’s customer support service. However, once you sign up for a loan on the platform, you will be directed to a direct lender. And as such, you will likely deal more with the lender’s customer support than the broker’s.
Therefore, take time to find out what previous and existing customers say about the lender whose offer you want to accept.
Is it safe to borrow from Very Merry Loans?
Very Merry Loans is licensed by the Information Commissioner’s Office and is a trading name of Payday Ventures, which is registered and authorized by the FCA. It processes user data securely as well as confidentially with the use of 256-bit SSL encryption.
Moreover, it claims to work only with lenders who follow the strict regulations of the FCA.
Very Merry Loans Review Verdict
One of the biggest challenges of dealing with a broker rather than a direct lender is that you do not know much about your actual lender. But as a service provider, Very Merry Loans provides great value.
By allowing you to choose from multiple lenders, they offer a measure of flexibility that not many brokers offer. They make things easier for borrowers who want to compare rates before settling on one lender so as to choose the best fit.
And since they only deal with FCA-regulated entities, they offer a measure of credibility and reliability.
Overall, they can be said to be a good choice of service provider for times when you need a quick financial fix.
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Glossary of loaning terms
A credit score shows your creditworthiness. It's primarily based on how much money you owe to loan or credit card companies, if you have ever missed payments or if you have ever defaulted on a loan.
Guaranteed Approval is when, no matter how bad, your credit score its, your loan application will not get declined.
A Credit Limit is the highest amont of credit a lender will lend to the borrower.
Collateral is when you put up an item against your loan such as your house or car. These can be repossessed if you miss payments.
A Cash Advance is a short-term loan that has steep interest rates and fees.
Your Credit Rating is how likely you are to fulfill your loan payments and how risky you are as a borrower.
Fixed Interest Rate is when the interest rate of your loan will not change over the period you are paying off you loan.
The Interest is a percentage based on the amount of your loan that you pay back to the lender for using their money
If you default on your loan it means you are unable to keep up with your payments and no longer pay back your loan.
If you miss a payment the lender will charge you for being late, this is known as a late fee.
An Unsecured Personal Loan is when you have a loan based solely on your creditworthliness without using collateral.
A Secured Loan is when you put collateral such as your house or car up against the amount you're borrowing.
This is the Interest Rate used by banks for borrowers with good credit scores.
The Principal amount the borrower owes the lender, not including any interest or fees.
A Variable Rate is when the interest rate of you loan will change with inflation. Sometimes this will lower your interest rate, but other times it will increase.
An Installment Loan is a loan that is paid back bi-weekly or monthly over the period in which the loan is borrowed for.
A Bridge Loan is a short term loand that can last from 2 weeks up to 3 years dependant on lender.
Having an AAA Credit Rating is the highest rating you can have.
A Guarantor co-signs on a loan stating the borrower is able to make the payments, but if they miss any or default the Guarantor will have to pay.
LIBOR is the London Inter-Bank Offered Rate which is the benchmarker for the interest rates in London. It is an average of the estimates interest rates given by different banks based on what they feel would be the best interest rate for future loans.
Home Equity Loans is where you borrow the equity from your property and pay it back with interest and fees over an agreed time period with the lender.
Debt Consolidation is when you take out one loans to pay off all others. This leads to one monthly payment, usually with a lower interest rate.
If you obtain a Student Loan to pay your way through College then you loan is held with the Department for Education U.K.
Financial Aid in the form of grants is funding available to post-secondary education students throughout the United Kingdom and you are not required to pay grant
How long will it take for me to get a decision on my application?
Typically, this should only take a few minutes. The platform uses auto decisioning, an automated approval process which is considerably faster than having human underwriters review applications.
Do you check my credit score?
No. Very Merry Lenders does not check credit score. But the different lenders may do so in order to ascertain your eligibility and creditworthiness.
Is the customer support team available at all times?
No. You can get a hold of a customer support team member on all 7 days of the week between 9:00 AM and 5:00 PM, but not on bank holidays.
Why did the platform decline my loan application?
The most likely reason for the response is that the lender did not believe you are currently in a position to repay the loan. But you could reapply at a future time when your financial circumstances change.
How long will it take to access funds if my application is accepted?
In most cases, you might get funds on the same day. But this depends on your lender, so confirm their payout times before signing up. Note too that some banks do not support fast payment and could lead to delays of up to 3 days.
What countries are accepted for Very Merry Loans loans?
The service provider accepts borrowers from all over the UK.
What loan products does Very Merry Loans offer?
Very Merry Loans offers short term installment loans through third party lenders, serving as a broker service.
What other store services does Very Merry Loans offer?
They do not offer any other store services.