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Instalments across 3 months were studied in the previous comparison and today we’ll be doubling up to the popular 6 month loans niche. There is a heavy overlap across each, but there are less overall options when stepping up. This has historically been a more competitive space to be operating in due to the instalment heavyweight brands Lending Stream and Sunny who have been big TV ad spenders. Competition may however ease moving forward in light of Sunny recently closing (MyJar, Satsuma and Uncle Buck have been further exits). It wasn’t that long ago of course that the closure of the big Enova firms went through (On Stride Financial & Pounds to Pocket).

Lending Stream was the first major brand to carve out the 6 month loans sector. They had originally offered a payday term, but were savvy to change direction when most lenders piled on short term. In time they’d be joined by an army of monthly firms who adapted when industry capping came into force. Stream’s main rival was Sunny, but Dot Dot Loans will likely fill this spot if they can continue their recent growth. There is certainly no dominant force in 2021 though with very sporadic market share. SafetyNet’s product would be very expensive over 6m if you kept topping up there and so it is Dot Dot in the #2 rank who are the top instalment firm as it stands.

About: Niche

In the past instalment comparison the benefits of spreading a monthly balance across 3 months was highlighted in order to improve affordability. When extending to half a year those repayments become even more affordable assuming that you are sticking to modest borrowing sums. When opting for a 6 month loan you’ll receive better overall value since the interest is cutting against a balance that is reducing on a monthly basis. It is true that longer term borrowing helps the lenders to pocket more cash, but most providers do enable early settlements to be made. This can usually be done with ease from making the request via your account login. Otherwise, by phone.

We’d consider good sector value to float around £150 per £300 (reminder: £100 was competitive at 3m). Many established brands tend to charge closer to £300 that is almost double the price. High cost products can especially cause problems for amounts accessed between £500 and £1000. Large debts like this could easily spiral and so should be extended over a year. Further comparisons will look at 12 and 24 month term options. There are also guarantor and logbook loans for very poor credit. Playing the long game and building up a limit on a subprime credit card is another viable option. The key advantage here is zero interest on purchases when balances are cleared monthly.

Notes…

Alexa.com: Comparison listings are sorted by global traffic rankings. Those unranked are sorted alphabetically.

Amounts: Borrowing amounts displayed are complete ranges (across every term available).

Closures: Capfin, In-Sync Credit Services, NextCredit, Pounds to Pocket, Quidie, Tiger Loans Company, Track Loans, Trusted Quid, WageDayAdvance, Wonga & Zippa Loans. More recent: MyJar, On Stride Financial, Peachy, Satsuma Loans, SkyQuid, Sunny & Uncle Buck.

Examples: £300 costs have been sampled. The exceptions are £600 being displayed for Quick Loan Shop (instalments require £400+). Then for Payday Loans Net we show £1200 since £950 is the smallest amount available at 6m and finally for Fund Ourselves £1500 is shown as 6m requires £1260+.

Best Prime Deal

5) Kabayan Finance: £146.99

Feefo.com (5* Percentage + Exact 5* Counts)

3) Smart-Pig: 96% (1680+)

Prime: Drafty

We did previously hand this spot to On Stride Financial who boasted the leading competitive prime rates. They have of course now closed down and so it is Drafty that takes the top spot (as they did in the 3 month comparison). Drafty’s £300 charge over 6m is £97.20 that is an excellent deal for sure (although Polar Credit have recently edged them at £95.29). As a credit line you’ll be able to access your cash 24/7 and there are sizeable sums available of £3000 (new customers) and £5000 (future potential). This firm has picked up high praise on major portals, but it is Mr Lender that shines in this department charting Reviews.co.uk and 2nd at Trustpilot. For those fortunate enough to qualify, Drafty would be the ideal choice in this competitive sector.

Subprime: Fair Finance

Fair Finance did offer the cheapest bad credit 6 month loans at £116 per £300 across 6 months with a discounted £92 reloan. However, they have now lost this spot to 2 recent comparison entries (this is Conduit at £64.24 and Moneyline at £96.48). Moneyline would be ideal from these, since Conduit requires paperwork through the post and they have currently paused lending through the pandemic. As it stands, we’d still give Fair Finance the top shout. They have importantly earned market trust as demonstrated by their #1 Feefo ranking. It is good to see that they also consider applicants with CCJs, defaults and those on benefits. There are some really great deals floating around at this time. Just remember to consider these ahead of the bigger more recognised firms who tend to charge close to £300 per £300.

Last Update: June 16th, 2021