Lending Stream Short-Term Loans: High Cost, High Risk

The Quick Version

Lending Stream offers short-term loans with APRs ranging from 99.9% to 1333%. While they provide quick cash solutions, the costs are steep, making this option a last resort. Only consider these if you've exhausted safer alternatives like credit unions or low-interest credit cards.

Rates shown are representative. Your actual rate depends on your credit profile. This is not financial advice.

The Numbers

According to Lending Stream's official page, new customers can borrow between £50 and £800, while existing customers can go up to £1500. The loans come with a representative APR of 1271%, with terms spanning 3 to 6 months. For a £300 loan over 6 months, you'd repay £578.36 in total — that's £278.36 in interest alone.

What's Actually Good

The biggest advantage here is speed. Approval happens in minutes, which is crucial if you're in a bind. Plus, they consider applicants with bad credit, which is often a hurdle with traditional lenders.

• ✅ Fast approval process
• ✅ Bad credit applicants considered

The Catch

The downside is glaring: the APR is astronomically high. At 1271% representative APR, you're dealing with a lot of interest. This is a high-cost credit solution, so only use it if absolutely necessary. Additionally, while applying doesn't impact your credit score, taking out a loan and defaulting will.

• ❌ Extremely high APR
• ❌ High total repayment amounts

Who Benefits Most

This is best suited for UK residents over 18 with a regular income who have exhausted all other financial options. If your credit score is low and you need cash immediately, this could be your last resort. However, be prepared for the high cost.

The Bottom Line

If you're considering Lending Stream, double-check that no other lower-cost options are available. This is a solution for emergencies, not everyday expenses. Always explore credit unions or other personal loan options first.