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Cahoot Flexible Loan

The Cahoot flexible loan is a new kind of loan that you can fit around your lifestyle and needs. You can borrow money when you need it and pay it back when you can afford to.

The loan works by setting you a loan limit, kind of like the credit limit you get on your credit card. You can borrow what you want, when you want, up to your loan limit. Your interest rate stays the same, no matter how much you borrow. The loan limit that is set will depend on what you need, your circumstances and your credit history.

For example, say you want to take out a loan for a holiday. You may need to pay a deposit straight away and then pay the balance later. Instead of either taking out two loans, or taking out a loan for the whole amount before you have to pay it all, you can get a flexible loan and only take out what you need when you need it. You only pay interest on the amount you have borrowed at any one time, not on the whole loan limit.

Repayments are also flexible. There is a small minimum monthly payment, again much like with a credit card. Beyond that, you can pay off the loan as you can afford to. Don't forget that the slower you pay it off the more interest will build up over time.

Also, unlike most personal loans which have fixed interest rates for the life of the loan, the APR on this loan is variable. This means that as interest rates go up or down, the interest rate on your loan could too. If the interest rate goes up, this could well increase your minimum monthly payments.

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Summary Table

Interest Rate	Typical 6.9% APR Variable
Repayment Terms	Ongoing
Loan Limits	Up to £20,000
Secured?	No
Online Account Access	Yes
Early Payment Penalty	No

Credit Sources Review

The Cahoot flexible loan can be great if you're looking for a loan that fits more around your needs than the other way round.

The loan works much like a credit card but with a much lower interest rate. However, the interest rate is higher than many standard fixed rate loans so it might not be a good idea if you don't really need the flexibility it offers.

Also be aware that interest can build up quickly if you only make the required minimum payments and if you're doing this it can take a long time to pay off the loan.

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