Creditstar | Payday Loans Like Creditstar - CreditRaters.com lender
Last updated: 15th Jan 2020

Creditstar Review

About

Creditstar is a short term payday loan provider in the UK offering loans between the amounts of £100-£700 for a period of 30 days to 6 months. The company has been operating since the year 2006, and stresses the importance of providing a great customer service throughout its product offering. Loans offered by Creditstar are unsecured, hence they carry a higher APR compared to secured loans available in the market. Creditstar is part of a group of companies that provides financial services in 8 countries.

Types of loans

Creditstar only provides short term loans which must be paid within a span of six months or less. These loans are unsecured, and the approval process only relies on a borrower’s affordability and credit rating.

  • First time borrowers are limited to a maximum loan amount of £300. This limit is gradually increased up to £700 if the borrower keeps making timely repayments.
  • Loans are given out for a period of 60 days to 6 months, depending upon the borrower.
  • A longer loan term results in a higher interest charge, hence borrowers looking for a short term solution usually opt for smaller loan terms.

Loan applications are checked through credit reference agencies to verify if a borrower fits the eligibility criteria required for approval of a Creditstar loan. Borrowers with a bad credit history may not be able to secure a loan with the lender.

According to the Creditstar website, customers opt for Creditstar loans when they wish to cover expenditure pertaining to healthcare, travel, purchase of goods, or any other unexpected expenses.

Creditstar uses Continuous Payment Authority, a service that allows the lender to automatically deduct the due monthly payment from a borrower’s bank debit card. In case a debit card has not been provided by the borrower, then a bank transfer must be made in favour of Creditstar of the due loan amount. The company sends out a notification 3 days before a payment is due to minimize the risk of delayed payments.

Borrowers can also make early repayments on the outstanding loan balance, although the lender does not specify whether they would be able to save on interest costs.

Loan extensions are also allowed for a period of 5-30 days after the due date. This extension may be sought a total of two times per loan, and granted at the discretion of the lender.

Borrowers will also have to bear an extension fee, which is the sum of interest expense to be charged on all the extended days.

Eligibility Criteria

The following eligibility criteria must be met in order to apply for a loan with Creditstar. Borrowers must:

  1. Be over the age of 18
  2. Have employment in the UK that provides regular income
  3. Be a resident of the UK
  4. Prove affordability of the loan within the specified loan term
  5. Have an operational bank account in the UK that comes with a linked debit card
  6. Have an operational mobile phone number

Pros & Cons

Customers of Creditstar enjoy the following pros & cons:

Advantages
    • Allows repayment via bank transfer

A few customers may not be comfortable with an automatic deduction from their debit card and prefer making a bank transfer to pay the monthly loan bill. Creditstar allows its customers to make bank transfers, although it is safer and more convenient to allow the Continuous Payment Authority to ensure payments are made on time. Missing a due payment can seriously damage the credit rating of a borrower.

    • Loans can be extended

It is entirely possible for a borrower’s financial circumstances to change over time, and this can make it difficult to honour the due monthly loan payments. Creditstar allows extension of between 5-30 days for up to 2 times for a single loan. The lender will only charge the interest accrued per day of the extended period as additional cost. The loan extension fee must be paid when the loan extension request is filed before the actual due date of a loan payment.

    • Easier process for returning customers

Borrowers that have previously received a loan from Creditstar and have repaid it in full are eligible to apply for a new loan, provided they still fulfill the lender’s eligibility and affordability criteria. The application process is much easier for them as they simply have to login with their existing details and apply with their information that is already stored in the Creditstar systems.

Disadvantages
    • May require applicants to send documentation

Creditstar may require bank statements for the past few months or other supporting documents while processing the loan application. This is no longer a requirement with a few more technologically advanced short term credit providers in the UK.

    • Does not allow loans greater than £700

The borrowing limit is capped at £300 for new borrowers and £700 for existing customers, which is among the lowest being offered by most short-term lenders in the UK. Borrowers that are looking for a larger sum need to look elsewhere for a loan, as these limits will not be extended by Creditstar.

    • Applicants with a bad credit history may not qualify for a loan

Although the lender evaluates every case individually, but an applicant with a bad credit rating may not qualify for a loan since the loans being offered are unsecured and require greater scrutiny of the borrower’s financial circumstances.

Borrowing costs of Creditstar loans

Creditstar charges a representative APR of 1079.24%.

For example, if an amount of £300 is borrowed from Creditstar for a period of 4 months, the total repayable would be £470.45, which would include £170.45 in interest charges. The interest rate charged by the lender is fixed at 274% per year.

There are no setup or registration charges to be paid when applying for a loan with Creditstar.

The following table illustrates the different scenarios borrowers may experience if they take out a loan with Creditstar.

Loan TypeLoan AmountLoan TermTotal RepayableCharge of Credit
Short Term Loan£3004 months£470.45£170.45
Short Term Loan£6004 months£940.90£340.90

Information Required To Apply

The following information is required when applying for a loan with Creditstar:

  1. Personal details including full name and date of birth
  2. Contact information including mobile phone number and email address
  3. Income information including employment details
  4. Bank account details.

How To Apply With Creditstar?

To borrow funds from Creditstar, the following steps must be followed.

First time customers

First time customers may only request a maximum amount of £300 for their loan, spread over a period of 30 days to 6 months. Customers are also given the choice to select the date that is most convenient for them to make the monthly payment.

Step 1

An online account needs to be created by clicking on the Register button located at the top-right corner of the lender’s website. The application form is self-explanatory, requiring personal, income, employment, bank account, and contact details of the borrower. Once all of the information has been provided and the user account has been created, borrowers need to submit the application along with their requested loan amount for approval.

The lender then processes the application by conducting all the necessary checks to ensure, to the greatest possible extent, whether the applicant would be able to honour the loan payments on time. This is done by contacting credit reference agencies to verify the applicant’s credit history, and by considering the income information provided to assess whether the applicant has the affordability for the requested loan amount. At this step, a Creditstar representative may also reach out to the applicant to confirm or request a few details.

Once all of the conditions and requirements as set out by Creditstar have been fulfilled, the loan is approved and the funds are directly deposited into the borrower’s specified bank account. Usually, as per the lender’s website, it takes around 30 minutes for the funds to be deposited.

Application process for returning customers

The following steps need to be followed by those who have already borrowed from Creditstar in the past.

Returning customers already have an account with Creditstar, so they simply need to click the ‘LOG IN’ button, as shown on the top-right corner of the image below, and login with their credentials as registered with Creditstar.

Step 2

After logging in, returning customers need to apply for a new loan by selecting the required amount, loan term, and monthly repayment schedule. Borrowers cannot apply for a new loan if an existing one still has outstanding payments. Also, returning customers may be eligible to borrow up to £700, depending upon whether they made timely repayments on their previous loan with the company.

After the application has been submitted for review, a Creditstar representative may still reach out to re-confirm information as presented in the loan application. Even if customers have done business with the lender in the past, a fresh assessment would be done to ascertain whether the borrower’s current financial circumstances are adequate to afford the loan.

Once the loan has been approved, it is deposited into the borrowers bank account.

FAQs

Creditstar allows loan repayments in two ways: Continuous Payment Authority or a direct bank transfer. With CPA, the lender automatically deducts the due loan payment from the borrower’s debit card. However, in case this is not possible, then the borrower is expected to repay the due loan payment through a direct bank transfer in favour of Creditstar.

It depends. As Creditstar provides short term unsecured loans, the only security that the loan would be paid in full with interest is the borrower’s affordability and credit rating. If the credit rating is poor, the loan application may not be accepted. However, a loan application may still be filed even with a poor credit rating, as each case is evaluated individually and certain characteristics of the borrower may qualify them for a loan.

If and when a loan application is rejected, it is assumed that the applicant would require some time to improve their financial circumstances before filing another application. That is why Creditstar disallows applicants to re-apply for a loan for a period of 90 days from the date of rejection.

It takes approximately an hour for Creditstar to process a loan application, after which a decision is communicated to the applicant. If approved, the loan amount is disbursed into the borrower’s bank account within 30 minutes, although some banking channels may require more than 2 hours to process the funds.

Yes, loans taken out from Creditstar can be repaid before they become due, although it is unclear whether borrowers are able to save on interest costs by paying earlier than the due date.

Lenders Like Creditstar

Are you not completely convinced about the services being offered by Creditstar? Would you like to research some alternative options before reaching a decision? The following lenders are also providing short term loans in the UK at comparative rates. These have also been reviewed and rated by Credit Raters.

Broker/LenderDescription
Simple Fast Loans (lender)Payday short term loans available between the £250 to £1,000 range. Payment plan is split over weekly, monthly, or fortnightly due dates. Interest charge is a flat 205.2% per year.
Peachy (lender)Payday short term loans between £100 to £1,000 range. Loan term is defined by the borrower up to 12 months. Interest charge is fixed at 248.37% per year.

Creditstar Promo Codes

No promo codes are available for Creditstar at this time.