Loans under £15,000
If there is a magic number in lending then it is probably the £15,000 loan. This is the commonest and most popular loan offered by lenders in the UK. It is the right amount of money to allow you to buy an ordinary new car or good sized conservatory or new kitchen and go on a very good holiday.
Most lenders offer it with repayment terms of up to 5 years and a few offer repayment for up to 7 years.
What makes it so special?..... Well the most important thing is how lenders consider the risk of lending to you for certain amounts of cash. Although they will not ever publish their golden rules of lending we have been able to decipher the rules for you, and there are three very important bits of information you should know.
The moment you want to borrow more than £15000 everything changes, the APR will shoot up, the lending criteria will be much tighter, ie they will look at your personal circumstances in much more detail before they will loan to you.
Why is £15,000 set as the boundary, there is no particular reason, it used to be £7,500 then £10,000 and over the years with inflation decreasing the amount you can buy with the same amount of money it has gradually risen. Lenders have to choose a set number over which they get much more picky about making a loan and this is the current line drawn in the sand.
Simplify Loans Golden Rule Number One :
Borrow up to £15,000 - quite easy, lower APR, lenders more relaxed about your financial history, loan will not be secured.
Ask for £15001 - much harder, likely to be secured loan, higher APR you will need to have a much higher credit score.
What if you need more than £15,000? well do not worry, it is actually far easier to take out two or more unsecured £15,000 loans at the same time rather than try and take out a loan for £25,000 to £30,000. By borrowing the money this way it will work out much cheaper as well because the APR will be lower.
Simplify Loans Golden Rule Number Two :
If you need more than £15,000 then take out two or more £15,000 loans rather than trying to take out a larger secured loan. Apply for the loans online all on the same day (preferably Monday morning). Online applications are processed very rapidly often within an hour and you should get a decision the same day or next. Because the credit reference agencies do not update their records at the same speed (It will take several days at least for the applications to show up) your loans should be approved before the individual lenders realise that you have applied for additional loans. None of this is illegal in any way and unless the loan application states that you have to declare that you are applying for credit elsewhere then you are not in breach of the application process.
Most lenders offer it with repayment terms of up to 5 years and a few offer repayment for up to 7 years.
What makes it so special?..... Well the most important thing is how lenders consider the risk of lending to you for certain amounts of cash. Although they will not ever publish their golden rules of lending we have been able to decipher the rules for you, and there are three very important bits of information you should know.
- Firstly for sums up to £15,000 lenders are far more relaxed about your credit history, employment record, earnings and even long term proof of address.
- Secondly you will be able to borrow this sum of money as an unsecured loan which is great news for you!
- Thirdly and perhaps most importantly, the cost of borrowing £15,000 or less will almost certainly be considerably cheaper because the APR will be lower.
The moment you want to borrow more than £15000 everything changes, the APR will shoot up, the lending criteria will be much tighter, ie they will look at your personal circumstances in much more detail before they will loan to you.
Why is £15,000 set as the boundary, there is no particular reason, it used to be £7,500 then £10,000 and over the years with inflation decreasing the amount you can buy with the same amount of money it has gradually risen. Lenders have to choose a set number over which they get much more picky about making a loan and this is the current line drawn in the sand.
Simplify Loans Golden Rule Number One :
Borrow up to £15,000 - quite easy, lower APR, lenders more relaxed about your financial history, loan will not be secured.
Ask for £15001 - much harder, likely to be secured loan, higher APR you will need to have a much higher credit score.
What if you need more than £15,000? well do not worry, it is actually far easier to take out two or more unsecured £15,000 loans at the same time rather than try and take out a loan for £25,000 to £30,000. By borrowing the money this way it will work out much cheaper as well because the APR will be lower.
Simplify Loans Golden Rule Number Two :
If you need more than £15,000 then take out two or more £15,000 loans rather than trying to take out a larger secured loan. Apply for the loans online all on the same day (preferably Monday morning). Online applications are processed very rapidly often within an hour and you should get a decision the same day or next. Because the credit reference agencies do not update their records at the same speed (It will take several days at least for the applications to show up) your loans should be approved before the individual lenders realise that you have applied for additional loans. None of this is illegal in any way and unless the loan application states that you have to declare that you are applying for credit elsewhere then you are not in breach of the application process.
If you have a good credit rating then we would recommend you look at ZOPA for a loan. They are quite a new lender in the market and are a new breed of whats called peer to peer lending. Unlike a bank they are set up as a community where people who have money to spare can offer it to ZOPA for an attractive interest rate knowing that ZOPA will then use it to loan it out to people needing to borrow. They are strict it that you must have a very good credit rating but in return you can borrow at good APR rates and thier loans are simple and straightforward with no early repayment penalties. They have been voted the UK's most trusted lender for 2010, 2011, 2012 and 2013 by Moneywise.