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Creditspring Reviews: 0% Interest Loans, Low Membership Fees

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Available amounts : 8/10
Loan terms : 7/10
Fees : 9/10
Ease of use : 9/10
Responsible lending : 9/10
Repayment flexibility/options: 8/10
Customer support : 8/10

Price: £5/ monthly

Updated: June, 24, 2022

Pros

  • No interest rate
  • Affordable monthly fees
  • No early repayment fee
  • Option to cancel anytime
  • Access to financial tips
  • Rejection won’t affect your credit score
  • Cons

  • Limited loan amount
  • 14-day approval period
  • Membership requires full-time employment
  • Creditspring is a loan provider that allows borrowers to take out loans without having to pay any interest rates. 

    Naturally, there’s a catch– borrowers have to commit to a membership fee. 

    What exactly does Creditspring offer?

    Here’s everything you need to know about the loan provider, including what Creditspring reviews say about its services.

    What is Creditspring?

    Creditspring is a subscription-based emergency loan provider that was founded in 2016. 

    The London-based firm offers an alternative to loan-taking and helps people get emergency funding without having to be subject to sky-high interest rates and potentially fall into unmanageable debt, which alarmingly is the case for 7% of British adults

    Instead of charging interest for loans customers take, Creditspring asks members to commit to a membership and pay a monthly fee– much like an insurance policy– making it an excellent option for those who would otherwise struggle to get access to more mainstream lending options.

    Creditspring offers different types of loans, including 

    • Bad Credit Loans for those whose credit rating is less than stellar; 
    • Emergency Loans for unexpected expenses; 
    • Wedding Loans that can cover the cost of an average wedding in the UK;
    • 6 Month Loans, which as the name suggests are loans to be repaid in 6 months; 
    • Personal Loans—Creditspring gives you access to two personal no-interest loans a year; 
    • Short Term Loans, which on Creditspring range from £500-£1,000 and can be repaid within 12 months; 
    • Car Loans, or known as a car repair loan is used to cover unexpected costs of car repairs; 
    • Debt Consolidation Loans which are used to cover any outstanding debt, such as credit card debt, you might have. 

    Worth noting: Credispring, unlike most fintech companies, is backed by private investors rather than venture capitalists.

    How Does Creditspring Work?

    Creditspring lets users borrow a set amount depending on their plan (£100, £200, £250, or £500) twice a year. 

    They have 6 months to repay the loan in full, all while paying a fixed monthly fee they agree to before taking out the loan. 

    For example, someone seeking to borrow £500, would repay the advance in fixed instalments, along with a £10 monthly membership fee.

    Members have access to two advances in a year and can take the second advance once the first is repaid in full (and on time).

    To become a member:

    1. Go to Creditspring’s website.
    2. Click on the ‘Log in’ button in the top right corner.
    3. Create an account for free.
    4. Pick a plan.

    All new members have to wait 14 days from signing up to take out a loan. 

    This cooling-off period can work well as it gives you time to once again review all your financing options and decide whether Creditspring is the right decision. However, if you are in need of quick cash, there are direct lenders which can transfer funds to your account within 24 hours of getting approved for a loan.

    Some of the lenders that offer same-day funding in the UK include: 

    Worth noting: Creditspring loans reviews say that the application process is simple and doesn’t take more than a couple of minutes.

    Will Creditspring run a credit check?

    If Creditspring rejects your applications, it won’t affect your credit score. It would end up on your credit report but only you would be able to see it.

    When reviewing your application, Creditspring will conduct a ‘soft’ credit search that will not affect your credit score. If it accepts the application, the company will run a ‘hard’ check that will leave a footprint on your credit report.

    Worth noting: Creditspring allows lenders to repay early without having to pay a fee.

    Creditspring Memberships

    Those that are eligible for a membership can choose from one of the three plans that Creditspring offers, including:

    PlanCreditspring Step membershipCreditspring Core membership Creditspring Plus membership
    Monthly fee£5£8£10
    Loan amount£100 to £200£250£500
    Loan terms6 months 6 months 6 months 
    Representative APR87.5%77.3%43.1%

    Which Membership Plan is Right for You?

    When choosing a membership plan you need to consider your needs and requirements. 

    What will you use the loan for?

    If you have a credit card or student loan debt to pay off, the £200 loan provided with the basic membership may not be enough. 

    The Plus membership can get you a higher loan, but you will have to pay twice as much in subscription fees. In addition, if you do not take out two loans this year, you might end up paying a fee and not using the services of the platform. 

    Calculate costs with each plan and make sure to consider how much you will end up paying monthly to choose the best plan for you. You could try using the services of one of the top-rated budgeting apps in the UK to help you plan your finances and monthly payments. 

    Is Creditspring a Good Idea?

    Like any other loan provider, there are pros and cons to consider before signing up for the platform.

    What Are the Advantages of Creditsping?

    Here are some of the biggest pros of Creditspring. 

    1. Creditspring can help boost your credit rating. 

    One of the great things about a Creditspring loan is the ability to improve your credit score by taking out a credit builder loan of £1000 that you repay monthly. 

    Make your repayments on time and Creditspring will report your activity to the relevant credit bureaus, who will then use this information to improve your credit rating. Having a good credit score can help you get better loans in the future, including favourable interest rates on mortgages and car loans. 

    Worth noting: SteadyPay offers a similar product, although they charge a fee of £4 a week. 

    2. Loans are guaranteed with Creditspring. 

    Unlike other platforms where you need to apply for credit and then wait and see if you are approved or not, Creditsping guarantees loans. In other words, if your membership is approved, your loan will automatically be approved as well as disbursed when needed. 

    3. Creditspring is more secure than traditional payday lenders. 

    Unlike payday lenders which cater to people with poor credit ratings and low income, Creditspring has higher standards and is not prepared to lend money to just anyone, making the platform a more trusted and secure loan provider than your run-of-the-mill direct lenders. 

    What Are the Downsides of Creditspring?

    Creditsprng may not be the best choice for everyone. 

    1. Creditsping is not the cheapest option

    If you have a good credit score and no issues getting funding, a traditional loan from one of the bigger banks, like NatWest or a TSB personal loan, is a much more affordable option. 

    However, if traditional loan routes are not an option for you right now, Creditspring can be a great alternative. 

    2. You are limited to only two loans a year

    This is another aspect to consider before joining Creditspring. 

    You might need more cash down the line after you used the two loans provided by the platform. This leaves you with a handful of options when it comes to borrowing money and if you already have bad credit, then the only remaining route would be to take out a payday loan, which comes with very high-interest rates. 

    Drafty and SafetyNet for instance, offer an ongoing line of credit, letting you borrow as often as you want. 

    3. You could easily lose your membership

    If you fail to pay your monthly fee on time or make loan repayments you could lose your Creditspring membership. Also, if you lose your job or face some financial difficulties that could have a negative effect on your finances, you need to inform the company. Otherwise, they could suspend your membership privileges. 

    4. You will pay a fee whether you take out a loan or not

    Unlike services offered by Tappily Loans or Polar Credit where you only repay what you borrow, with Creditspring you have to pay a monthly membership fee whether you take out a loan or not, which in essence means that you are paying interest on a loan you never took out.

    On the plus side, you can cancel the membership at any time. 

    What are the Creditspring Eligibility Requirements?

    To become a member at Creditspring, applicants have to meet all Creditspring qualifications.

    For example, CreditSpring is limited to UK residents who have an annual income of £20,000 p.a. and above. Also, all members are subject to affordability and credit checks.

    Other requirements applicants have to meet include:

    • Having a permanent UK address for at least three months and having a UK bank account.
    • Being 18 or over.
    • Having full-time employment.
    • Having no recent CCJs
    • Having no recent IVA or bankruptcy claims.

    Customer Support

    Existing and potential customers can reach out to the Creditspring customer service team by

    • Phone: +44 20 3870 3332
    • Enquiry form 
    • Through their account (for members only)

    You could also find some answers on the company’s Help Center page.

    There’s still no Creditspring app or live chat but customers say they are satisfied with the company’s customer service and describe the team as helpful and knowledgeable. If you want a lender that provides immediate assistance through a live chat feature, take a look at what Mr Lender has to offer.

    Bottom Line

    Creditspring is one of the few loan providers that doesn’t charge borrowers an interest rate– instead, they pay an annual membership fee of  £60, £96, or £120. All borrowers who take out a loan have to repay the advance in six months and can take up to two loans in a year.

    FAQ

    Could I lose my access to credit from Creditspring?

    Members that fail to meet monthly membership fee deadlines or loan repayment deadlines, and don’t inform the company on time that they’ve lost access to regular income or any changes to their financial status can lose access to Credispring’s services.

    Is Creditspring legit?

    Creditspring is operated by Inclusive Finance, which is regulated and authorised by the Financial Conduct Authority (FCA).

    Is Creditspring a payday loan?

    Creditspring offers different types of short-term loans but instead of interest, it charges a monthly membership fee. If you are interested in payday loan, here are some options for you.

    How do I cancel Creditspring?

    You can cancel your Creditspring membership after you’ve paid your loans and membership fees. Once you’ve done that, head over to the cancellations page to notify the company that you want to cancel your membership. Creditspring will cancel it after it confirms you’ve paid back the settlement in full.

    Is Creditspring any good?

    The company has a 4.6 rating on TrustPilot. Creditspring reviews show that around 87% of customers are satisfied with Creditspring’s services.

    My name is Marija, and I'm a financial writer at DontDisappointMe. Although finance might not be everyone's cup of tea, my 10+ years of working in one of the biggest banks in my country, and my interest in extensive research on everything finance/investment-related, have made me somewhat of an expert in the field (if I do say so myself). No longer having the passion to work in a corporate setting, I decided that I couldn't let all of this knowledge go to waste so I started writing. And, here I am! Today I try to share my knowledge with my audience in the hopes of making this topic as simple and interesting as possible. In my leisure time, I like spending time with my family and travelling to new locations.