Loans FAQs
Need some extra cash but don’t know where to start when it comes to borrowing money? Here are some answers. It’s easy to compare loans and get a great deal today with TotallyMoney.com’s loan comparison tool.
How can I use a loan?
A loan can be used for a number of things – including buying a car, making home improvements and debt consolidation.
Isn’t it easier to use a credit card?
Spending on your credit card may be more convenient than a loan, but it could also end up costing you much more in interest payments. Also, if you want to make a large purchase, you could exceed your credit card limit.
What’s credit scoring?
Once you apply for a loan, lenders will use the details you provide – combined with information from a credit reference agency – to assess your application and give it a score. This score will then be compared to the lender’s acceptance criteria to see if you are eligible for a loan. If it does, then your application will be accepted.
I have a bad credit history. Can I still get a loan?
Some lenders will give you a loan, even if you’ve got a bad credit history – but they will charge you a higher interest rate than those with a good credit history. Before being accepted, you will be assessed on your ability to repay the loan.
How can I improve my credit history?
Having a bad credit history can make it difficult to get accepted for personal finance products like loans. But you can improve your credit rating by paying your bills on time and spending sensibly on a credit card – making sure that you pay off the balance each month. You can also boost your credit score by ensuring that you’re registered on the electoral role.
One of the quickest ways to ruin your credit record is to apply for products like loans that you have very little chance of getting. Every failed application leaves a mark on your credit file. TotallyMoney.com’s loan comparison tool helps you see the likelihood of the loans you’re eligible for, so you avoid that risk.
Can I get a loan from any lender?
Lenders are selective about who they accept for loans. So they’ll look at your credit record and assess how likely you are to repay the money. Any big debts or a history of missed payments could mean you can’t get a loan from a certain lender or that you pay a higher interest rate than someone with a higher credit rating.
How do you know what loans I may be eligible for?
When you provide your personal information using TotallyMoney.com’s loan comparison tool, we help match your profile with information from lenders. By providing accurate information, you can better ensure you see the loans you’re most likely to get.
Will I get the rate that I see displayed?
The representative APR (Annual Percentage Rate) displayed is the interest rate offered to at least 51% of successful loan applicants. However, your actual interest rate will depend on your personal circumstances. So it may be different from the one you see displayed on TotallyMoney.com’s loan comparison tool.