Things to consider when getting a loan
When applying for a loan, each lender in the UK will have their own set of criteria for a customer to meet before they can lend to you. This may vary, but as a minimum you should:
- Be over 18
- Be a UK resident
- Not be legally prevented from borrowing for any reason (e.g. bankruptcy)
If you can meet this, lenders will then look at your credit history. Having a bad credit score can limit the type of loan you can apply for. This means you may see lower borrowing limits and higher interest rates.
As well as this, it helps to make sure you can afford your loan. If you miss any repayments it can have a negative impact on your credit score. This can make it harder to get credit in the future.
It’s not recommended to apply for multiple loans. If your application is rejected, making another can impact your credit score and make getting credit harder.
Applying for a Vanquis Loan
Currently we offer loans directly to eligible Vanquis Credit Card customers via email, SMS or through the Vanquis App. You can also call us to check your eligibility and receive a link to your online application. Give us a ring on 0333 003 5802*.
However if you're not a Vanquis Credit Card customer yet, you can check if you are eligible for a Vanquis loan through a number of money comparison sites such as Compare the Market, ClearScore, Experian, Totally Money, Money Saving Expert and Money Supermarket.
Here's what you can expect if we offer you a loan:
- Simple and straightforward online application
- No hidden charges or fees, ever
- Quick and easy eligibility check with no impact on your credit score if you are declined.
*Call charge information
Network charges may apply. Calls to 01 and 03 numbers from UK landlines and mobiles are normally included in free plan minutes if available; otherwise calls to 03 numbers cost the same as calls to 01/02 prefix numbers. Calls to 0800 or 0808 numbers are free from mobiles and landlines.
There are several features and considerations of a loan. Whether you’re applying through a bank or another lender, it helps to weigh up your options.
Some features of a loan include:
- The ability to borrow a lump sum and spread the repayments over a number of months
- Fixed repayments so you know how much you need to repay each month
- You know exactly when the loan will be repaid and how much it will cost you
However, there are some things you may want to consider:
- High interest rates can make borrowing expensive
- Fixed repayments can cause issues if your salary varies from month to month
- Some loans need you to put up property or possessions as security
Please consider your options before you apply. Find a loan that fits your current situation and ability to make payments.
The better your credit score, the more loan options you may have. Having a higher score can give you access to higher borrowing limits and lower interest rates. This is because lenders will see that you have managed credit well in the past. As such, they may see you as more likely to keep up with repayments.
Lenders can view borrowers with a lower credit score as a bigger risk. If the lender feels you are a risk, they may not approve your application. If they do approve, they could charge higher interest rates. This means your options can be limited when applying for a loan.
If you have poor credit, a well-managed loan could help you increase your score. If you can keep up with payments and pay off the loan in full, it is a positive sign. As a result, you could see your loan options improve in future.
When getting a loan might not be a good idea
A poor credit score is one reason why you might not be granted a loan. The same is true if you have any existing debt, such as other loans or credit cards. Lenders may think you are reliant on them and see you as a higher risk. If this applies to you, a loan may not necessarily be right for you.
There are several other reasons you might be turned down for a loan:
- A low or unstable income - If you are self-employed, in part-time employment or on benefits, your income could change month on month. This could suggest you won’t be able to keep up with the repayments each month. Lenders will see you as a bigger risk and may be less likely to lend to you
- You’ve made too many applications - You might be rejected if you apply for several loans in a short space of time
- You’ve not borrowed before - It may be the case that you have little or no credit history. This may be because you’ve never borrowed money before. As such, lenders will have no idea whether you're good at repaying money
In any case, it’s important to apply for a type of loan and lender best suited to your needs and circumstances.