Coffee Break Loans is a company that went viral on TikTok for promising an easy way to get a loan of $1 – 5000. The ad mentions that you can get a loan fast, even if you don’t have a strong credit score. In fact, the name even gives an idea that the process is so quick you could get it on your “coffee break.” But what’s the real truth behind the Tiktok post? Can you really get a small loan, with no hassle, just from applying on a website? Read on if you want to know if you should use Coffee Break Loans.
What is CoffeeBreakLoans.com?
CoffeeBreakLoans is a loan finder service that matches individuals with lenders. The company itself does not loan out money. They connect borrowers with “financial helpers,” or lenders, to give out small personal loans. The company seems to target those who have an emergency situation and have exhausted all other options to find money.
What Does CoffeeBreakLoans offer?
The most popular product from the Coffee Break Loans website is a small personal loan of amounts ranging from $1000 – $5000. These are loans that usually have a shorter repayment period– often 91 days. Although, qualified applicants can apply for coffee break loans to be repaid over a longer period of time.
The company doesn’t just offer personal loans, however. They also match applicants with business loans, car insurance and credit cards. These are great options if you’re in the market for these services and want to compare offers.
Is Coffee Break Loans Legit?
CoffeeBreakLoans.com is a legitimate loan finder. But Coffeebreakloans is not a lender, and they do not make credit decisions, take loan applications or do a host of other things that financial services companies or banks do. They do not determined the terms of a loan, set the rates or collect payments. They are simply a loan finder, and they offer to connect your online application with their network of financial service providers who review your application and decide whether or not to loan you money.
Is Coffee Break Loans Safe?
If you decide to apply for a loan with CoffeeBreakLoans, your information will be sent to lenders for them to review. These are real lenders who review your income, credit history and job status to determine if they want to offer you a loan. For these short-term small personal loans, these lenders charge fees and interest, often as high as 35%.
While the process is safe– as in, the process is what it claims to be: a way to connect consumers with short term lenders– there are pitfalls to these kinds of loans. The interest rates are higher than you will pay for a “normal” personal loan.
Paying over 30% interest for a short term loan, along with fees, can be very costly. You might consider the high cost of these loans are where the danger lies.
Each state determines the maximum amount of interest allowable that lenders can charge. These rates vary. Check with your state’s Secretary of State office to find out the rate.
Reviews of CoffeeBreakLoans
The customer service reviews of coffeebreakloans are generally positive. This means that people interested in a loan are able to get in touch with customer service to help them with the process. Of course, this doesn’t take into account the loans themselves.
But for a personal loan finder, to connect you to lenders for a quick cash loan, the reviews are generally positive.
Pros and Cons of CoffeeBreakLoans
As with all loan services, there are benefits and downsides.
Pros
- Borrowers are connected to many lenders
- Quick to apply
- Borrowers can receive loan funds quickly
- Competitive interest rates (for business loans)
- No hidden fees in the process
Cons
- Limited to $5000 for a personal loan
- Repayment time period is short
- Interest rates are high and the lenders often charge fees
Is Coffee Break Loans for you?
CoffeeBreakLoans might be a good service for you if you know you might not be approved for a traditional personal loan at your bank. If you have less than perfect credit, and need to find other options for a personal loan, this could be an option for you to get a cash loan. As an alternative, if you want to explore how to improve your credit so you are eligible for better loan rates with traditional lenders, Cambio can help you monitor and repair your credit to get you in a better position as a borrower.
Whether you choose this or another loan service, recognize that these short term personal loans will cost more than traditional loans over the long term, since the lenders in the CoffeeBreakLoans network do charge higher interest for lending to people with lower credit scores. There is a price for “quick money”, but if you’re in a bind, coffeebreakloans can be helpful in the short term to connect you with lenders.