Tappily was a UK-based financial service that provided flexible credit lines to individuals seeking short-term borrowing solutions.
Unlike traditional payday loans, Tappily offered a revolving credit facility, allowing customers to access funds up to a predetermined limit as needed.
This approach aimed to provide a more adaptable borrowing option for those facing unexpected expenses.
How Tappily Operated
Tappily’s service functioned similarly to an overdraft.
Customers were assigned a credit limit, and they could draw funds up to this limit at any time.
Interest was charged daily on the outstanding balance, and repayments were automatically adjusted based on the customer’s bank account activity.
This system was designed to offer convenience and flexibility, enabling borrowers to manage their finances more effectively.
Interest Rates and Fees
Tappily charged a daily interest rate of 0.34% on the borrowed amount.
For example, borrowing £100 would incur an interest charge of 34 pence per day.
There were no additional fees or charges, making the cost structure straightforward.
However, it’s important to note that while this rate was lower than some payday loans, it was still higher than traditional personal loans or credit cards.
Eligibility Criteria
To qualify for a Tappily credit line, applicants needed to meet certain criteria:
- Be a UK resident aged 18 or over.
- Have a regular income of at least £1,000 per month.
- Possess a UK bank account with online banking facilities.
Tappily utilized open banking technology to assess applicants’ financial situations, allowing them to make informed lending decisions based on real-time data.
Advantages of Tappily
- Flexibility: Borrowers could access funds as needed, up to their credit limit, without reapplying for a new loan each time.
- Transparency: The absence of hidden fees meant customers were aware of the costs involved.
- Automated Repayments: Tappily’s system automatically adjusted repayments based on the customer’s bank balance, helping to prevent missed payments.
Considerations
While Tappily offered several benefits, potential borrowers needed to consider the following:
- Cost: The daily interest rate, though lower than some alternatives, could accumulate over time, making it an expensive option for long-term borrowing.
- Bank Account Monitoring: Tappily required access to customers’ bank account data to operate effectively, which might have raised privacy concerns for some individuals.
Closure and Administration
In January 2023, Tappily’s parent company, Indigo Michael Limited, entered administration.
This development led to the cessation of new lending activities under the Tappily brand.
Existing customers were advised to continue repaying their outstanding balances as per their original agreements.
The administrators communicated with customers regarding the status of their accounts and any further actions required.
Alternative Options
With Tappily no longer operating, individuals seeking similar flexible credit solutions might consider other providers.
It’s essential to compare different options, focusing on interest rates, fees, and terms to ensure the chosen product aligns with one’s financial needs and repayment capabilities.
Responsible Borrowing
Regardless of the lender, responsible borrowing is crucial.
Potential borrowers should assess their financial situation, ensure they can meet repayment obligations, and avoid borrowing more than necessary.
Utilising budgeting tools and seeking financial advice can aid in making informed decisions.
Conclusion
Tappily provided a flexible borrowing option for UK consumers through its revolving credit facility.
While it offered several advantages, including flexibility and transparency, the service ceased operations following the administration of its parent company in early 2023.
Individuals seeking similar financial products should explore alternative options, ensuring they choose solutions that best fit their financial circumstances and borrowing needs.
