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Personal loans are the most common type’s of loans taken out in the UK. Common factors of personal loans:
- Available from £500 up to £25,000
- Borrow over 6 months to 10 years
- Most purposes considered
- Suitable for Homeowner and Non-Homeowners.
There are over 800 personal loan schemes available in the UK meaning each lender has different type of products available dependant upon the client’s circumstances. The reason for so many loan products is due to every person having different reasons for the loan and also amount they wish to borrow, the length of the term, their age and credit history.
Who is eligible to take out a personal loan?
How do I find the right personal loan?
How quickly can I receive the money?
What happens if I cannot repay my loan for a short while?
What happens if I want to pay back my loan early?
Who governs personal loans?
Anyone that is over the age of 18, has lived in the UK for a minimum of 2 years and has regular income can apply for a personal loan. Top
Click here to apply for a loan
When looking for the right personal loan there are a number of factors which you should consider rather than just the cheapest rate. For example if you know you have had previous issues with your credit in the past, it will be unlikely the lenders will approve you for their best rates. The lenders when approving your loan work on what is called a scoring system, each lender has their own unique way of scoring their clients dependant upon various factors of your circumstances.
If you are unsure of what your credit profile looks like you can apply to get a copy of the file from the main credit reference agencies:
Experian
Equifax
A little tip: Try and look out for the Total Amount Repayable (TAR). This will give you an accurate figure on exactly what you will be paying back!!
It is important to compare different loans in order to find the best one to suit your personal circumstances. Rather than taking time out and going in and out of individual banks and buildings societies to get your personal loan, it’s a lot quicker to do one single search online to find you exactly what you are looking for. Top
Click here to compare personal loans
Your loan application can be completed and funds can be transferred in to your account in as little as 2 day’s from the date you have returned all of the required documentation by the lender.
A consideration period will apply here, (required by the Consumer Credit Act - see below), to allow you time to read the documentation and make sure that you are 100% sure about taking out this loan. Top
Whether you have become ill or have been made redundant – what ever the circumstances you must contact your lender immediately. Some lenders offer repayment holiday’s (or deferred payment) – where you will be allowed to take a break at an agreed point during the term of the loan. Please be aware that the interest will still be accrued so this may mean that you’ll end up paying more.
To be on the safe side your lender may offer you payment protection insurance and this will cover your payment in the event of accident sickness and un-employment, until you are able to go back to earning money again and can simply be added to your monthly instalments. This can provide peace of mind but does not come cheap so you must make sure you shop around for the best deal. Top
Some companies offer this as an incentive and there is no charges for you should you wish to pay back your loan earlier that the term originally requested.
However most companies will charge an “early payment penalty” should you wish to repay the loan earlier than the repayment term. This is because the interest on the loan is where the lender makes their money. It is therefore useful to shop around. Top
Personal loans are governed by the Consumer Credit Act 1974 and are enforced by the office of fair trading. It provides customers who take out a loan protection against companies who are simply ripping customers off!
Within the credit agreement you will have all the details relating to the loan that you wish to take and to be able to make a more informed decision about taking the loan. You will simply have clear information on the state of your finances. Top
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