Frequently Asked Questions

Technical FAQ
Personal Loan FAQ
What exactly is a personal loan? How do personal loans work? How am I protected? What is PPI? How do I get a personal loan? How can I be sure that I make the right choice? How am I judged when applying for a personal loan? Why do Loan Providers put so much importance on a good credit history? Does applying for a loan affect my credit status? I've had credit problems. Can I still qualify for a personal loan? What is a non-standard lender? How do I check my credit rating? What is an affinity loan? What is a secured loan? What is a guaranteed loan? What is an unsecured loan? How are interest charges calculated? Does the APR cover the cost of this insurance? How do I make my repayments? How can I make sure I never miss a repayment? Are there any hidden charges on personal loans? Are there any hidden penalties for repaying the loan early? Am I obligated to accept the offer if I apply? What can I do if I'm rejected and I don't agree? What happens once my loan has been agreed? When do I get the funds? What supporting documentation do you need from me? Is a personal loan for me? How can I find out how much I have left to pay? Are there any geographical restrictions when applying for a loan? Who are your loan providers? If I have a problem with my personal loan who should I contact?
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Personal Loan FAQ
Technical FAQ
What do I need to get on the Internet? What is a modem? What is a browser? How do I know that I'm using the right browser? How do I upgrade my browser? How do I print a page? How do I know where to find your website again? What is a cookie? What happens if my PC crashes during a session on your website? How do I download Adobe Acrobat Reader to my PC? I’m trying to download my application but just get a blank screen. Why is that?
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What exactly is a personal loan?
A personal loan is a lump sum advance from a loan provider to you. The lump sum can vary from as little as Ł500 to as much as Ł25,000. You can choose over what period of time to repay the loan, in monthly instalments. Personal loans can be secured, or more normally, unsecured. The secured element relates to whether the repayment of the debt is backed by some other asset, usually your home. For unsecured personal loans, the shortest repayment period is 6 months, with the maximum 120 months, although not all providers will have this range of terms available. For secured loans, the maximum term mirrors that of mortgages and other loans secured on your property, with a maximum of either 25 or 30 years. The loan provider makes money by charging you interest, which is added to your loan repayments. All personal loan providers also offer payment protection insurance. This insurance allows for repayments to be continued should you have an accident, sickness, or become unemployed. The loan provider makes money on the commission from the sale of this policy to you. You do not have to take this insurance to take the personal loan.
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How do personal loans work?
Once approved, the money is deposited in your account either electronically, or via a personal cheque. You agree to make regular monthly repayments until the full value of the loan capital, plus any interest, has been repaid. Most personal loans are at a fixed interest rate, which means that the interest rate you are charged, and by definition the repayments, do not vary over the term of the loan. The most common, and simplest way to ensure you keep up with repayments is to set up a direct-debit from your current account to the loan provider, which minimises the chance of you missing a repayment.
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How am I protected?
Personal Loans are governed by the Consumer Credit Act. The Act contains strict regulations about how money is lent and covers loans up to a value of Ł25,000. When taking out a personal loan you will be asked to sign a credit agreement. Read this through carefully before you sign, as you will be bound by its terms. Some loan providers offer insurance policies or payment protection schemes to protect you in the event of accident, illness or redundancy. However, cover may vary and you should check with your individual loan provider what a particular policy or scheme covers, or more importantly, excludes. If you do have difficulty making your repayments, seek advice from your loan provider immediately. The earlier the better and the more sympathetic they will be. Alternatively, you can seek advice from a voluntary organisation.
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What is PPI?
Payment protection insurance is a type of optional insurance that will cover your personal loan repayments in the event of death, illness or involuntary unemployment. You personal loan provider will provide you with a quote for this insurance but it is key to remember that PPI is entirely optional. You should read the policy statement and Key Facts summary from the provider before committing.
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How do I get a personal loan?
It’s easy! Just complete the following 4 steps:
Enter your loan requirements including loan amount, term and a few basic questions about yourself. Personal loans that match your requirements are presented to you in table format enabling you to easily compare different loans. You can view specific product features of each loan by selecting the “Details” button. You can even interactively search for a loan based on features most important to you by selecting “find the right loan for me”. Apply for a loan by selecting the “Apply” button. You will then be asked to complete an application form that is then assessed by the loan provider. The loan provider will then notify you of the success of your application. If you happen to unsuccessful with your application feel free to try another loan provider present on our marketplace.
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How can I be sure that I make the right choice?
Our unique selection process can objectively guide you through the decision-making process and provides a list of loans, which match your requirements. For example, you will be asked for your preferences relative to different loan features, such as typical APR, monthly repayment and brand. You will then evaluate a series of hypothetical loans and make trade-offs between different loan features. After comparing these features, you will be presented with a list of your top ten loans based solely on your preferences.
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How am I judged when applying for a personal loan?
Judgement criteria vary from one loan provider to another. However, your income and your credit history are the two main criteria. Many loan providers rely on data from credit reference agencies.
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Why do Loan Providers put so much importance on a good credit history?
When issuing you with a personal loan, loan providers give you credit. They take this risk based on your ability to repay that money. Your credit history shows how you have repaid loans in the past. This is taken as an indication of how you will repay loans in the future. If you have a good credit history, you are considered low risk. A good credit history can help you get more than personal loan privileges. It can also help get loans for those bigger life purchases such as a car or a house. A good credit history speaks well for you. A poor credit history can be improved over time and people have opportunities to make that happen.
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Does applying for a loan affect my credit status?
Yes. Every time you apply for a loan, an inquiry is made as to your credit status. This inquiry is noted with the respective credit agency. Although these inquiries will remain on the report for approximately one year, loan providers will be primarily concerned with the number of inquiries over the last 6 months. Loan providers do become concerned if there are more than 10 inquiries during that time. They interpret this as an indication that you are badly in need of credit, and thereby consider you high risk. As a result, they will be less likely to grant you the loan you are applying for. It is therefore important that you do not apply for an excessive amount of loans unless absolutely necessary.
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I've had credit problems. Can I still qualify for a personal loan?
There are some loan providers on our database who are willing to consider applications from people who have had credit problems in the past. Often they will require that a secured loan be taken out, which improves the risk from their perspective. In addition, interest and other charges are often higher, again reflecting the increased risk. If you are in this position, while using our Compare and Contrast loan search engine, select the CCJ/Arrears specialist lender as being an important loan feature for you. This will help us find lenders who provide this service.
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What is a non-standard lender?
A non-standard lender provides finance to those who may otherwise have difficulty obtaining credit.
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How do I check my credit rating?
First of all, you need to understand how the system works. Remember that you do not have a right to credit, and before giving you credit lenders, such as banks and loan companies, want to check that you are an acceptable risk. To help them do this, they check with firms called credit reference agencies (CRAs) to get details about you and your credit record. These agencies have records of almost every adult in the UK. You can write to the two main CRAs for credit information at the following addresses: Experian, PO Box 8000, Nottingham NG1 5GX, tel 0115 976 8747 Equifax, Dept 1E, PO Box 3001, Glasgow G81 2DT, tel 0990 783783. You must send a cheque for £2 (made payable to Experian or Equifax), your full name and address and any addresses you have had in the last six years (this helps the agency to track all the information it has on you). If you run a business, give its name and address as well, because separate information could be held on you under your business.
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What is an affinity loan?
An affinity loan is a personal loan that is associated with a particular, often charitable, cause. A donation is made to the charity when you are issued with the loan and a small percentage donation will also go to the charity for every transaction you make on the loan. Many companies and organisations form an affinity deal with a major loan provider, as they do not have the resources or expertise to launch their own product, but want to offer the service to their customers. An example might be a football club wanting to offer personal loans to its fans.
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What is a secured loan?
Secured loans differ from unsecured loans in that a second 'charge' is made against your home, in addition to your mortgage, so that if you stop making repayments on the loan, the loan provider has rights over the value of your home. These, however, would be secondary to those of your mortgage loan provider. A secured personal loan looks just like a regular one and the law ensures that it has all the same consumer protections.
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What is a guaranteed loan?
A guaranteed loan is one where the loan provider uses information it has about you and your financial record (usually through an existing account relationship) to decide that you qualify for the loan before you apply. This is done to encourage applications, as one reason you may be hesitant is the fear of being turned down. You are normally advised of the guarantee in a mailing campaign, the hope of the loan provider being that this fact increases the number of people who reply to the offer.
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What is an unsecured loan?
This loan does not require an asset to be nominated as security. If you fail to keep up with repayments, the loan provider will have to undertake legal proceedings to recover the money, with no explicit risk to your home or any other asset.
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How are interest charges calculated?
The interest is calculated in two basic ways. Either the total interest due is calculated up-front, and added to the loan advance, or is calculated on an ongoing basis, either daily or monthly, based on the capital outstanding at that time. Repayments are simply the total of interest and capital divisible. The two methods make no material difference to the amounts paid by you to the loan provider.
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Does the APR cover the cost of this insurance?
It does now. This long-overdue change means that loan providers cannot now quote you a cheap interest rate that did not reflect the cost of insurance that you might have had to buy to get the loan. Now it must include this, and so making a comparison based on the interest rate is much easier.
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How do I make my repayments?
There are three ways in which your loan can be repaid. The most popular way is to set up a direct debit from your own bank account to the loan provider. Alternatively, you may be able to pay by cheque every month. Lastly, a small number of loan providers still allow payments to be made in cash to a branch.
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How can I make sure I never miss a repayment?
Set up a direct debit to ensure that the monthly payment is made automatically. It is worth considering this payment option because if you miss the deadline, late payment penalties may apply, and the missed repayment may be recorded against you in your credit history both with the loan provider, and with the credit reference agencies Experian and Equifax.
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Are there any hidden charges on personal loans?
You should be made fully aware of all charges, including interest, insurance premiums and arrangement fees before you sign your loan agreement. Less obvious may be charges you want to consider that are payable should you wish to repay the loan early - these are listed on the product details page for each loan but you should also check with the lender when you are applying.
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Are there any hidden penalties for repaying the loan early?
Many firms levy an early repayment charge, which can be two or three months interest. However this may very between loan providers. Our selection criteria allow you to differentiate between loans with this feature.
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Am I obligated to accept the offer if I apply?
If you apply and are approved for a loan, you are under no obligation to accept the offer. An offer will be sent to your listed address; you can choose to accept by returning the signed document or reject the offer.
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What can I do if I'm rejected and I don't agree?
If you are rejected for the loan you apply for, the loan provider details, for the loan applied for, will be emailed to you. This will allow you to contact the loan provider regarding any questions you may have about the refusal for a loan. You can also get a copy of your credit history at the following addresses: Experian, PO Box 8000, Nottingham NG1 5GX, tel 0115 976 8747. Equifax, Dept 1E, PO Box 3001, Glasgow G81 2DT, tel 0990 783783.
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What happens once my loan has been agreed?
If a personal loan is agreed you will be given a written agreement to sign. Ensure you understand the terms upon which the loan is offered before you sign. This includes any loan set up fees due, penalties you'll incur if you repay the loan early and the total amount you pay. The agreement may also include a 'cooling off' period where once you have signed the loan agreement you have a short time to cancel it without penalty.
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When do I get the funds?
This will depend on the loan provider of the loan applied for. Most loan funds are received within 24 hours of approval and signing of the agreement. This may vary slightly between loan providers.
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What supporting documentation do you need from me?
This may vary between loan providers. Usually the loan provider will request your bank details and utility bills to confirm your address.
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Is a personal loan for me?
To decide this there are a number of factors to consider. These include whether it is necessary to borrow the money at all, or could you fund it from your existing investments? If you need the money for only a short time, would it be better to use a credit card or current account overdraft? Can you afford it - not just now but have you any other commitments on the horizon that would affect your finances?
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How can I find out how much I have left to pay?
To find out about an outstanding balance on a loan you will need to contact the loan provider directly. Some loan providers send statements every six months to a year, depending on the loan provider.
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Are there any geographical restrictions when applying for a loan?
Only applicants with a residential address in the United Kingdom can apply for a loan. Applicants in the Channel Islands and the Isle of Man may not apply.
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Who are your loan providers?
Our loan providers include most lending institutions within the United Kingdom.
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If I have a problem with my personal loan whom should I contact?
In all cases you should contact your personal loan provider.
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What do I need to get on the Internet?
All you need is a PC, a modem and a telephone line, as well as the necessary connection software that is called a browser and is provided by an Internet Service Provider (ISP).
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What is a modem?
A modem is an external box or a card inside your PC that simply translates computer signals into phone signals. This enables a computer to communicate with another computer via a telephone line. You'll need a modem to send e-mails and surf the Internet. The faster your modem, the faster your connection. The fastest modem you can currently buy is 56kbps (that's kilobits per second), or you could consider an ISDN link or Home Highway. Your telecoms supplier will be able to provide more information.
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What is a browser?
A browser is software that allows you to view websites. It has a number of controls in the form of the menu bar, toolbar and shortcut menu. Examples of browsers include Internet Explorer and Netscape Navigator.
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How do I know that I'm using the right browser?
If you have recently purchased a new PC, it is likely to have one of the two compatible browsers mentioned above or even more recent versions. Otherwise, click on Help on the toolbar at the top of your browser. There will be an "About" option to check which version you have.
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How do I upgrade my browser?
If you have an earlier version of a browser, you can download an updated version in the following way for either Internet Explorer or Netscape Navigator. For Internet Explorer - on the Internet
Go to the Microsoft site at www.microsoft.com. Click on the free Downloads link and select Internet Explorer.
For Internet Explorer - using a CD Rom
Browsers can also be upgraded using a Windows 98 CD Rom. If you have this, then insert the CD Rom and select IE4 SETUP.EXE. This will update the browser to Internet Explorer 4. For Netscape Navigator - on the Internet
Go to the Netscape site at www.netscape.com. Click on the free downloads link and select Netscape Communicator.
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How do I print a page?
For Internet Explorer 4 or 5 and Netscape Communicator, select File, Print. Or just click on the Print button on the toolbar at the top of your screen.
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How do I know where to find your website again?
It's easy to get lost on the Web. To avoid Web disorientation, make frequent use of your browser's bookmarking feature. This feature allows you to mark the website you are navigating so you can access it again at a later date without having to memorise its location. To bookmark a web page in Netscape browser, simply select Bookmarks from the menu bar at the top of the page and click on the 'Add Bookmark' option. This will save the location of the site you are navigating. To access this website at a later date, select Bookmarks from the menu bar and browse through your list of bookmarked sites to select the appropriate one. Once selected you will automatically be navigated to that page. To bookmark a web page in Internet Explorer, simply select Favorites from the menu bar at the top of the page and click on the 'Add to Favorites' option. This will save the location of the site you are navigating. To access this website at a later date, select Favorites from the menu bar and browse through your list of bookmarked sites to select the appropriate one. Once selected you will automatically be navigated to that page.
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What is a cookie?
A cookie is a piece of information sent to your PC when you access a website. Go to the Cookie Central site at http://www.cookiecentral.com
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What happens if my PC crashes during a session on your website?
If your PC crashes whilst on our site, none of the data entered will be saved. Therefore you will need to start the session again.
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How do I download Adobe Acrobat Reader to my PC?
If you download a copy of your application form, you will need Adobe Acrobat Reader on your PC in order to read it. If you don't have this software you can download it (for free) from the Adobe website. To download, please complete the following:
Go to the Adobe site at www.adobe.com. Click on the free 'Get Acrobat Reader' link Follow the download instructions clearly marked.
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I’m trying to download my application but just get a blank screen. Why is that?
If you are using IE4, then your browser may not have the Adobe Acrobat plug- in. This means that your application form will not appear when you click Download. Instead of using your left mouse button to click Download, use your Right mouse button to display a drop-down menu, choose Save Target As, and save your application to your hard drive. To read your application, click on the file you have saved and it should launch in Adobe Acrobat Reader. Remember, if you do not have Adobe Acrobat Reader installed, you can download it for free from the Adobe website at www.adobe.com.
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