Satsuma Loans - Early Payment

T-G-C

Hello,

From experience and background knowledge, do lenders, in this case Satsuma Loans, hate it when a customer decides to complete their loan before the agreed date?

I will be completing a loan, in full, 5 weeks before the agreed completion date. This will allow me to rebate a discount on the original amount, in terms of interest and gives me peace of mind.

Do you feel that Satsuma Loans would see this, in terms of their customer ratings, as a negative from me or a positive? Would it discourage them from lending in the future? Does it demonstrate financial stability?

Your opinions and experience would be wonderful

[Deleted User]

Unlikely. But it's not a bad thing if Satsuma prefer not to lend to you.

DCFC79

Who knows but if they do reject you take it as a god send and dont borrow from Satsuma or anyone else like them.

T-G-C

DCFC79 wrote: »

Who knows but if they do reject you take it as a god send and dont borrow from Satsuma or anyone else like them.

I know that none of the short-term cash lenders are nice, especially Wonga, however, if there was a nicest out of all of them, Satsuma Loans would be rated the highest.

They do not charge late payment fees, can shift the agreed date if needed and operate a direct SMS chat if avoiding speaking over the phone.

I will, however, not be using them in future. This is mainly because unlike credit cards, if the agreed monthly amount is not paid in full, there is no lifeline - it is a bad mark and collection efforts.

With a credit card, even with interest added each month, can be a lifeline if you can't put back everything you spent - perfect for an occasional cash flow issue, as long as the debt is paid and doesn't keep mounting.

stevenhp1987

If you can afford to repay 5 weeks early, why are you considering using them again? You will save a small fortune in interest.

You should always avoid PayDay loans and I cannot think of a situation where it would be advisable.

Having a PayDay loan does not demonstrate financial stability; Paying it off ASAP will help.

T-G-C

stevenhp1987 wrote: »

If you can afford to repay 5 weeks early, why are you considering using them again? You will save a small fortune in interest.

You should always avoid PayDay loans and I cannot think of a situation where it would be advisable.

Having a PayDay does not demonstrate financial stability; Paying it off ASAP will help.

I am not considering using them again in the short-term, I mean if 6 months down the line I needed a cash supplement, it would be a nice last resort to have prepared for use.

Satsuma Loans are not a payday lender, as they do not require employment and the loans are spread between 3 to 12 months, whereas payday loans are paid in full on your next salary date.

stevenhp1987

T-G-C wrote: »

I am not considering using them again in the short-term, I mean if 6 months down the line I needed a cash supplement, it would be a nice last resort to have prepared for use.

Satsuma Loans are not a payday lender, as they do not require employment and the loans are spread between 3 to 12 months, whereas payday loans are paid in full on your next salary date.

991% Representative APR (from their website)... That's PayDay lender territory (worse!). It would show on your credit report as such.

It's almost 4 times more than Wonga's Representative APR. Wonga offers 274% Representative APR over 6 months (from their website).

This will potentially put off lenders when they view your credit report and will likely nuke a mortgage application with a mainstream lender.

Rather than waste money on such extortionate rates perhaps you should go through your incomes and outgoings to see where you can save a bit of extra cash to use as a last resort?

[Deleted User]

T-G-C wrote: »

Your opinions and experience would be wonderful

Yes - have repaid Sunny loans always early and never needed to use the 'full term offering' since 2014.

Earlier this year on what so far has been the last loan, only then did I pick up on the fact the percent (%) for me was a lot higher then the website stated. I remember Sunny and Satsuma were so close together when I did a compare of all other lenders who made their information available, these two were really top of the list for most costly.

Only time I got rejected was under post new regulations in April 2015 when I tried to take out new loan not long after settling the previous as the wrong thing to do to be frank and which if I was honest was the problem in the old payday loan day so I couldn't grumble and you can see what happens when you try to repay early and get it wrong.

In addition from what I've made of it, it doesn't make a jot of difference to any other credit granters if you have ever re-paid one of these loans earlier. It means absolutely nothing.

redpete

Most people do consider satsuma in the pay day loan category - they offer small loans for short periods at very high rates of interest. You are fooling yourself if you think they are not as bad as others and therefore not too bad to have to use them.

The amount of money you will save by paying it off early should far outweigh any worry about them not offering you another loan at some unspecified time in the future.

PeacefulWaters

Get rid of the loan.

Start saving up.

Next time you need a "cash supplement" use your newly acquired savings.

Never get a loan again.