Got an urgent huge purchase down the road but is short in budget? Starling personal loans may help you with this big spend, but they’re not always the right lending product for you. What you might really need is a Starling Bank overdraft.
Is a Starling Bank overdraft right for you? Should you settle for a Starling personal loan, if they offer one in the future? Use this article to make a well-informed decision.
Terms from 1 to 10 years. Representative example: 5 year £10,000 loan with comparison rates from 2.8% to 49.9% APR would cost between £10,728 and £27,321, including fees. The interest can vary between £728 and £17,321.
About Starling Bank
Starling is a London bank founded by Anne Boden in 2014. They offer financial and lending products to individuals and businesses.
If you get their award-winning current account, you can see your spending insights and create savings goals in the Starling mobile app.
Business owners and startup organisations can also use Starling’s B2B banking services. They offer business accounts for limited companies, sole trader accounts for freelancers, and multi-currency accounts if you have overseas transactions.
Meanwhile, if you want to borrow funds for a huge purchase, you can choose from their personal or business overdrafts and business loans.
As for borrowers who are having difficulties with monthly repayments with a Bounce Back Loan, they can use the Pay As You Go plan. This allows the borrower to either take repayment holidays or extend their loan term.
Starling Bank overdraft features
- Representative rate of 15% APR* (variable)
- Assumed credit limit of £1,200
- Interest is accrued daily
- Charged on the 15th of the following month
- Starling Bank overdraft rates are 15%, 25% and 35% Equivalent Annual Rate or EAR (variable)
- No application fees
- Includes full check, so it will affect your credit score
How to apply for Starling Bank overdraft
- Go to the Starling Bank website.
- Next, select Overdrafts & Loans > Personal Overdraft
- Navigate to the bottom of the page.
- Select Start your application.
- You will then be asked to choose if you’re a New Customer or an Existing Customer.
- Provide your UK phone number and email.
- Next, you’ll need to download the app to continue. To start, scan the QR code on the page. This will take you to the app store, where you can start downloading the mobile app.
- After downloading the app, you can continue your application there.
- Starling Bank will then check your details. Now, all you have to do is wait for their approval.
You’re eligible if you:
- Are 18 years old or above
- Live in the UK permanently
- Haven’t been bankrupt
What you’ll need:
- Smartphone or laptop
- Stable internet connection
- Valid government ID (ex. Driver’s licence or your UK passport)
Starling overdraft Vs Starling personal loan?
Starling doesn’t offer personal loans at the moment. However, if they offer one in the future, would it be ideal to choose a personal loan over a Starling Bank overdraft?
In general, both lending products are expensive. So, choosing the right product all boils down to your preference.
If you prefer fixed terms and monthly repayments, a Starling personal loan might be more suitable for you. Meanwhile, if you like things to be more flexible, you might like a Starling bank overdraft more. That’s because you can pay an overdraft in instalments, unlike with a personal loan. You can also pay it off like how you do with your credit card fees.
Again, take note that an overdraft is still a loan. Both can be expensive to pay if you don’t reflect on your financial situation carefully. Make sure to choose the lending product you’re more capable of repaying.
Starling Bank loan calculator
EST Monthly Repayment
7 days
to 90 days
EST Monthly Repayment
£1
to £5,000
We all need a little extra support from time to time. At Starling, we know that an overdraft can act like a short-term safety net when youre feeling the burn financially. But we want to make banking better which means offering a better kind of overdraft. One thats easy to manage and fair on fees. Manage your money and keep tabs on your overdraft, all from our award-winning app.
Repayment Period
12 months
to 60 months
Loan Amounts
£7,500
to £25,000
Paying off your debt using a Nationwide loan could give you the chance to take control of your finances.
Repayment Period
12 months
to 60 months
Loan Amounts
£7,500
to £15,000
You are eligible if youre 21 or over and live in the UK permanently, you have a regular yearly income of £6,000+, you are able to make your repayments by Direct Debit, and you havent been declared bankrupt, had a CCJ or an IVA within the last 6 years. All credit is subject to status and credit checks.
Repayment Period
12 months
to 96 months
Loan Amounts
£15,000
to £25,000
Make your plans a reality with a personal loan with fixed monthly payments, an instant credit decision, quick access to funds and no arrangement fee.
Repayment Period
24 months
to 60 months
Loan Amounts
£15,000
to £24,999
When it comes to putting your plans into action, its personal. And with a personalised loan just a few clicks away, getting things moving could be simpler than you think. Get your loan rate before you apply without it affecting your credit score.
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Minimum and maximum loan periods vary between 1 month and 10 years. APR varies between 2.80% and 71.30% p.a. Total interest repayments vary between £435 and £1,019 over the life of the loan. *APR is based on an unsecured loan of R£15,000 for a term of 3 years. WARNING: This APR is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different APR. These rates can change without further notice. All rates quoted are per annum.
