Personal loans, for instance, are a popular choice for people with both good and poor credit histories. They’re designed to get you the cash you need quickly, with fair repayment terms of 12-36 months. This means they’re also popular with those who prefer to avoid very short-term ‘payday’ loans or who have used them in the past and wish to opt for more manageable credit.
Below we answer some of the most common concerns borrowers raise about their suitability when looking for a personal loan. Do any of these sound familiar to you?
“I need money in a hurry”
Many personal loan customers are applying for credit because they need money quickly, before their usual payday. This may come about due to an unexpected bill, or because something needs repairing or replacing in order for them to live their lives normally, such as a car or washing machine. Others may be purchasing something less essential, but they need the money that same day to get the best deal.
If you need money fast, then a personal loan can be one of the speedier options. If your application is successful, the money will be paid into your account on the same day if you applied online, or you’ll receive the cash right then and there if you apply in-store. The application itself is streamlined and shouldn’t take long – just make sure you have all required information to hand. More details can be found in our Personal Loans FAQ.
“I want a small loan with easy repayments”
When on the lookout for a small loan of up to £1,000, many people decide to apply for a payday loan. Payday loans have a short repayment term, whereby all money borrowed plus fees and interest is due within 30 days of the loan pay-out. This can be hard to manage for some, and although the payday loan industry has improved due to stringent new lending policies, they can still cause real financial difficulty in the long term.
Personal loans help to fill the gap between larger instalment loans and the smaller payday loans. You can borrow up to £1,000 and pay it back in instalments over a number of months. If you’d prefer to keep the loan term short, you can opt to pay in a minimum of 3 instalments. For those who’d like to pay a smaller amount back each month, the repayment term can be set for up to 24 months.
“I have never borrowed before”
With any type of unsecured credit, the information held in your credit file is an important factor in the approval process. Your credit file holds information about who you are, where you live and any previous credit or credit applications. It will also contain important financial information such as previous bankruptcies or problems with previous non-payment. This all equates to a credit ‘score’, where proper payment of credit is rewarded and missing payments cause the score to go down. Many people assume that, if they haven’t borrowed before, then their credit score must be fine. Unfortunately, it works on the basis that you have to prove you can handle credit properly before your score is ‘good’. This creates a bit of a catch-22 situation for new borrowers.
Personal loan applications are approved due to a variety of factors, always including but not limited to the applicant’s credit score. The amount you want to borrow, how manageable the loan is for you, your income and expenditure, and your proof of ID all play a part in the approval process. This makes it possible for those who have not borrowed before to start building up their credit score with a manageable personal loan.
“I want a loan quickly, but I want to speak to a real person”
The internet is usually the first place we go when looking for credit these days, when not too long ago the first port of call would usually be your local bank branch. While the internet can be a really useful tool for working out which lenders to avoid and which may be a good fit for you, the online application process itself may not feel natural to some customers. When it comes to something as important as finance, having a knowledgeable person on hand to help if needed and physically signing the contract is something many feel more comfortable with.
We understand that sometimes it’s hard to know exactly how a company is run when they can only be found online. It’s also easier for rogue lenders to pop up and cause real problems behind the curtain of the world wide web, and those who may have been stung in the past often prefer to deal with credit applications on paper, and understandably so. Here at H&T Pawnbrokers we offer a complete online personal loan, but we also have 250+ stores throughout the UK so that you can come and speak to a real person if you want to. When applying in-store, you also may qualify for a lower rate and you’ll get the cash paid straight to you upon approval.
Alternatively, if you are applying online we are more than happy to talk you through the application, and we will need to discuss the details of the contract with you on the phone to ensure that all information is properly understood. You are welcome to ask us any questions at any point, and our friendly and knowledgeable advisors will be able to help. You are welcome to call us on 0800 838 973 or use our online contact for more information before, during or after you apply.
