We have access to a number of lenders all willing to lend you the money. But please bear in mind you will have to pay interest on what you borrow which means that you'll pay back more than you actually borrowed.
Contact us for our advice as to the best solution for your needs.
Types of borrowing
There are a number of ways you can borrow money for the short to medium term.
These can be:
Bank overdraft
Personal loans
Credit cards, store cards and in-store finance
Other borrowing
When you apply to borrow money in any of these ways, you'll be asked to complete an application form. Your answers help the lender to predict how big a risk they're taking by lending you money. This is called a credit score.
You'll be charged interest on what you borrow, usually monthly. The interest rate varies depending on the type of loan. You can use the APR (Annual Percentage Rate) to help you shop around for the best deal. APR tells you the cost of the loan taking into account the interest on the loan and other charges. All lenders have to tell you what their APR is – see What is APR ?
Always think about whether you can afford the repayments from your household budget. Don't sign until you've considered all the options.
Credit scoring
What is credit scoring?
When you apply for a credit card, current account, personal loan, hire purchase (HP) agreement or mortgage, or any other form of credit, the lender will usually credit score your application. This helps the lender decide whether to accept your application and, where relevant, helps set your credit limit and interest rate.
Credit scoring works by awarding points to the information you provide on your application form and to the information recorded on your credit report (held by a credit reference agency). The questions on an application form are designed to help the lender to assess your creditworthiness. Credit scoring uses all this information to try to predict how big a risk the lender is taking by allowing you to borrow money. It often helps them decide:
whether to give you a credit card or loan
what credit limit to give you
what interest rate to charge.
If your total score reaches the lender's pass mark, they will probably offer you credit. If you don't score enough points, the lender may:
turn down your application
offer to lend you a smaller amount than you were hoping for
charge you a higher rate of interest.
Each lender has their own scoring system, but you'll generally score the most points the longer you've been in a job; if you own your own home and/or have lived for a while at the same address; if you're middle aged rather than younger or older; and if you're married. However, you certainly don't have to be all of these things to apply for a loan.
The information on your credit report is very important and having a good credit history will improve your chances of getting credit. Someone who has had a credit card and pays all their regular bills on time may score more points than someone who's new to loans. On the other hand, it can count against you if you already have several loans and credit cards, or if you've made lots of different applications recently.
If you're not on the Electoral Roll the lender might refuse your application. This is because lenders use it to confirm your name and address.
What if they turn you down ?
Lenders won't go into detail about how their scoring systems work, but if you are refused credit you can ask them to tell you the main reason – which could be because of credit scoring or because of information on your credit report. They have to tell you the name of any credit reference agencies they used.
What is APR ?
APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers. The APR includes important factors such as:
the interest rate you must pay
how you repay the loan
the length of the loan agreement (or term)
frequency and timing of instalment payments
amount of each payment
certain fees associated with the loan
premiums for payment protection insurance that the lender chooses to make compulsory.
All lenders have to tell you what their APR is before you sign an agreement. It will vary from lender to lender. Generally, the lower the APR the better the deal for you, so if you are thinking about borrowing, shop around.
The Financial Services Authority does not regulate some forms of buy to lets, unsecured loans, secured loans, commercial loans, overseas mortgages and conveyancing.
Changes in the exchange rate may increase the sterling equivalent of your debt.
For overseas mortgages we act as an introducer to other companies.
