Polar Credit review.

Polar Credit is a trading name of APFIN Ltd, the same FCA-authorised entity that operates CashASAP under firm reference 673186. The product is a revolving line of credit from £200 to £2,000 with a 68.7% representative APR, materially below the 96.2% rate on Drafty's comparable Flex product. The pricing model splits the cost into two parts: 49.9% per annum interest on drawn balances plus a 1.65% transaction fee on each withdrawal. Polar Credit is the cheapest revolving credit option in this directory and the natural alternative for borrowers whose cash-flow gaps recur on an unpredictable schedule.

Active Direct lender Established 2020 Verified May 2026

Key facts

Each figure has been verified against Polar Credit's published representative example and the FCA register on 4 May 2026.

Credit limit
£200 to £2,000
Representative APR
68.7%
Term
Open-ended
Transaction fee
1.65% per draw
Setup fee
None
Min withdrawal
£25

49.9% per annum interest variable on drawn balances. Daily rate of 0.165%. Representative example assumes a £1,200 credit limit. There is no fee to set up or maintain the credit line: cost only applies to drawn funds. The 68.7% APR reflects interest plus the 1.65% transaction fee combined and assumes typical drawdown patterns. The illustrative withdrawal of £250 for 14 days costs £9.91 in total (£4.13 transaction fee + £5.78 interest).

Operational strengths

Cheapest revolving credit option in the directory

The 68.7% representative APR sits well below the 96.2% rate on Drafty Flex, the only other revolving credit line in this directory. For a borrower whose use case is recurring drawdowns on a flexible facility, Polar Credit is materially less expensive than the next-cheapest revolving alternative. The illustrative £250 withdrawal held for 14 days costs £9.91, a third less than would accrue on a Drafty drawdown of the same size and duration.

Pay only when drawing

There is no setup fee, no monthly account fee and no charge for keeping the facility open at a zero balance. Cost applies only to drawn funds, split between the 1.65% transaction fee at the moment of withdrawal and the 49.9% per annum interest applied to the outstanding balance. A borrower can hold the credit line indefinitely without cost as long as no drawdowns are made. The structure suits applicants who want a safety-net facility but expect to use it irregularly.

Larger limit than the directory's payday peers

The £2,000 credit limit ceiling is materially larger than CashASAP's £750 maximum and matches Loans 2 Go and Fast Loan UK at the upper end of fixed-term peers. For a borrower whose recurring need is in the £500 to £2,000 range and who values flexible access, Polar Credit covers a broader use case than most short-term direct lenders in this directory.

CCTA membership and Open Banking affordability

APFIN Ltd is a CCTA member, which carries the same conduct-code commitments described on the CashASAP page. Polar Credit also uses Open Banking (via Credit Kudos) at the application stage to read recent bank-account transaction history. The Open Banking step is voluntary but improves the affordability assessment, which can mean a higher offered limit for borrowers whose income and outgoings show stable cash flow.

Material considerations

Cost

Still expensive relative to mainstream credit cards

The 68.7% representative APR is the cheapest in the directory's revolving credit segment, although it is well above mainstream credit-card rates of around 30% to 40%. The split-cost structure (49.9% interest plus 1.65% transaction fee per draw) penalises frequent small withdrawals more than a single larger one. A borrower drawing £100 ten times pays the 1.65% fee ten times. The same £1,000 drawn in one withdrawal pays the fee once. Borrowers who can predict the size of their need should draw the larger amount once rather than repeatedly.

Revolving access creates debt-creep risk

The behavioural risk on a line-of-credit product is repeated drawdowns extending the borrowing period indefinitely. Polar Credit allows minimum monthly payments to keep the account in good standing, which preserves the structural flexibility but means a balance can sit accruing interest for months if the borrower does not actively reduce it. Borrowers who want a defined repayment end-date and a clear total-cost figure upfront should look at a fixed-term product such as the sister brand CashASAP or the Drafty Loan instalment alternative.

Hard credit search at application stage

Polar Credit runs a hard credit-file search at the application stage using TransUnion. A search footprint appears on the credit report once the check is run, regardless of whether the application is then approved. There is no preliminary soft-search filter. Applicants who want to test eligibility without registering a hard footprint should look at peers offering a soft-search front-end before applying here.

Smaller verified review base than directory peers

The Trustpilot profile sits at around 229 reviews, smaller than CashASAP's 3,500+ and well below the 17,000+ on Drafty or 25,000+ on Lending Stream. The reviews paint a generally positive picture of service delivery. The smaller dataset still gives less statistical depth for new customers using third-party reviews as a reliability proxy. Polar Credit is also one of the newer brands in the directory, which partly explains the shorter review history.

Most appropriate & Least appropriate

Polar Credit's revolving structure rewards borrowers whose drawdown pattern is irregular and infrequent and penalises those who let a balance sit. The two columns below clarify the borderlines.

Most Appropriate

The right fit

  • Cash-flow gaps recur on an unpredictable schedule
  • Borrower can clear drawn balances quickly to limit interest
  • Lowest available APR on a revolving credit line is the deciding factor
  • Comfortable sharing recent banking transaction history through Open Banking
Least Appropriate

Look elsewhere

  • Borrower wants a defined repayment end-date and total-cost figure
  • Required sum exceeds £2,000
  • Pattern is many small drawdowns where the 1.65% fee compounds
  • Mainstream credit-card or bank loan rates are accessible

The application process

Polar Credit operates a three-stage application flow that establishes the credit limit upfront, after which drawdowns are near-instant from the borrower's online account. There is no mobile app yet: the credit line is managed through the website only.

1

Online application and Open Banking

The applicant completes the online form with personal, employment, income and bank details. Polar Credit then invites the applicant to connect a bank account through Open Banking via Credit Kudos. The Open Banking step is voluntary, although applicants who skip it may be offered a lower limit because the affordability assessment relies more heavily on credit-bureau data alone.

2

Credit limit decision

A hard credit-file search is performed at TransUnion. A footprint is left on the credit file once the search runs, whatever the final decision. The underwriting model returns either an approved credit limit (usually within minutes) or a decline. The applicant reviews the offered limit and decides whether to proceed before signing the agreement. Limits depend on circumstances and may be lower than the £2,000 maximum.

3

Drawdowns through the online account

Once the credit line is open, the borrower logs in to the online account and requests a drawdown. Minimum withdrawal is £25. The 1.65% transaction fee applies at the point of withdrawal. Funds typically arrive in the nominated bank account within minutes via Faster Payments, although the exact timing depends on the receiving bank's processing windows. Any drawdown can be settled ahead of schedule with no early-repayment fee.

Comparable alternatives

Three FCA authorised Lenders
worth considering.

Three firms cover adjacent positions, including the directory's other revolving credit line and Polar Credit's own sibling brand for fixed-term needs.

Drafty

The directory's other revolving credit line. Higher 96.2% representative APR but a larger £3,000 limit and an established mobile app for managing the account. Suits borrowers who value app convenience and need a higher ceiling.

CashASAP

Sister brand under the same APFIN authorisation. Fixed-term payday and instalment loans of £200 to £750 for borrowers whose underlying need is one-off rather than recurring.

Lending Stream

Established direct lender with a much deeper Trustpilot base of 25,000+ reviews and faster funding. Six-month fixed-term £50 to £1,500 instalment loans for borrowers prioritising verifiable scale over revolving flexibility.

Sources and verification

Loan terms, representative APR and fee data verified against polarcredit.co.uk on 4 May 2026.

Regulatory status verified on the FCA register under firm reference 673186 (APFIN Ltd, which also operates CashASAP).

Trustpilot data sourced from uk.trustpilot.com/review/polarcredit.co.uk, retrieved 4 May 2026.

Swift Money Limited is a credit broker, not a lender. Inclusion in this directory does not imply a commercial relationship between Swift Money and Polar Credit. We are authorised and regulated by the Financial Conduct Authority, FRN 738569.

Frequently asked

Polar Credit questions, answered.

How does the Polar Credit line of credit work?

Once approved for a credit limit between £200 and £2,000, the borrower can request a drawdown through the Polar Credit online account. The minimum withdrawal is £25. A 1.65% transaction fee applies at the point of withdrawal. Funds typically arrive within minutes via Faster Payments. A minimum monthly repayment is taken by Continuous Payment Authority while a balance remains outstanding. As soon as part or all of the balance is repaid, that portion of the limit reopens for redrawing. There is no fee for keeping the facility open at a zero balance.

Why is Polar Credit cheaper than Drafty?

The two products use different pricing models. Drafty Flex prices everything into a single 96.2% representative APR. Polar Credit splits the cost into a 49.9% per-annum interest rate plus a 1.65% transaction fee per draw, combined into a 68.7% representative APR. The split fee model rewards larger less-frequent withdrawals over many small ones. The lower headline APR also reflects different positioning: Polar Credit targets borrowers who can manage the draw pattern, while Drafty's model handles a wider mix of usage behaviours. Both are legitimate FCA-authorised products. The cheaper headline rate at Polar Credit comes with the trade-offs described in the considerations above.

Do I have to use Open Banking to apply?

No. Open Banking is voluntary. Polar Credit invites the applicant to connect a bank account through the Credit Kudos service so the affordability assessment can read recent transaction data, although the applicant can decline this step and proceed with a credit-bureau check alone. Applicants who skip Open Banking may be offered a lower credit limit because the affordability model has less information to work with. Borrowers who are uncomfortable sharing transaction-level banking data can still apply on the bureau-only path.

What is the 1.65% transaction fee?

The 1.65% transaction fee is charged once at the point of each withdrawal from the credit line. A drawdown of £250 incurs a £4.13 transaction fee. A drawdown of £1,000 incurs a £16.50 transaction fee. The fee is added to the outstanding balance and accrues interest alongside the principal at the 49.9% per-annum rate. Borrowers who make many small withdrawals pay the fee many times. Borrowers who take a single larger withdrawal pay it once. Predicting the size of the need before drawing helps minimise total cost.

How do credit-limit increases work?

Existing customers can request a credit-limit increase through the online account once they have demonstrated repayment behaviour on the current limit. Polar Credit reassesses affordability before approving any increase. The decision considers credit-bureau data, current balance behaviour and (where consented) updated Open Banking transaction data. Approval is not automatic and the offered increase may be smaller than the requested amount. Borrowers can also request a limit decrease at any time through the same channel.

Is Polar Credit the same company as CashASAP?

Polar Credit and CashASAP are both trading names of APFIN Ltd, the same FCA-authorised entity operating under firm reference 673186. APFIN's company number at Companies House is 07989136. They are separate brands offering different products: Polar Credit's revolving line of credit at 68.7% representative APR, CashASAP's fixed-term payday and instalment loans. They share the same parent, the same regulatory permission and the same underwriting infrastructure. Both brands appear under APFIN Ltd's listing on the FCA register.

Get started

Apply for a short term loan in
under 2 minutes

A single soft search application returns offers from multiple regulated lenders, including direct alternatives to Polar Credit and other short-term loans options for borrowers with bad credit. No impact on your credit file. Receive a decision in seconds.

Apply now