Jan 9, 2020

Defining “less than perfect” credit

Your credit report demonstrates how you have dealt with past credit and how you handle your bills, allowing lenders to assess your level of risk when you apply for credit. So, “less than perfect credit” generally describes a record of past difficulties in keeping up with your credit agreements - any late repayments or no repayments will show on your credit report over time. Each lender will have their own appetite for risk so there may still be a lender out there for your situation.

Can I get a loan if I have a low credit score?

As you probably realise, your chances of being approved for a loan are much higher if you have a reasonable credit score, as lenders are likely to avoid taking larger risks. However, there are options designed for those who don’t have the most perfect credit history. These loans typically have higher interest rates and greater restrictions than other loans, simply because those applicants are considered to be a riskier proposition than those with higher credit scores.

What makes me eligible?

In the UK, to apply for a loan designed for those without the best credit, you must meet a number of criteria. First of all, you’ll need to be a UK resident who is over the age of 18. You must also not be bankrupt, have evidence of a steady income and have access to an active bank account. Remember that with any loan application you will undergo a credit and affordability check, so that the lender can determine whether repayment of the loan would put you into financial difficulties or you’re outside of their risk criteria or not.

Will I need to have a guarantor?

Not necessarily but it could increase your chances of acceptance. If you have less than perfect credit, having a guarantor could help build up your score. It would also give lenders more confidence that you will pay the money back.

What are my other options?

If you don’t have a great credit profile and are unable to use a guarantor, there are other options. You could use a free eligibility checker which will show you what loans you are likely to be offered, without harming your credit score. Also, before applying it would be a good idea to review your report so that you could look to make changes to put you in the best possible position for receiving credit. Using our tool Credit Knowledge* will give you access to your own, detailed credit report. Credit Knowledge will help guide you in making your report more attractive to lenders and indicate to you why you may have been refused credit in the past.

*Please see site for Terms & Conditions

Jan 7, 2020

What is a short-term loan?

As the name suggests, a short-term loan is a type of credit that is to be taken out and repaid within a short period of time. Short term is usually seen as anything that is less than 12 months, but the loan term is dependent on the lender. Predominantly, short-term loans are taken out for a period between 3-6 months. If you are looking to borrow credit for longer than 12 months, then you should seek a more suitable loan option such as a personal loan.

How does a short-term loan work? 

When applying with SupaLoans,we try and make it as simple as possible for you in finding you the most appropriate lender. Firstly, you will need to fill in our application form online. The application form will ask you to fill in your details and provide us with information on how much you would like to borrow and how long for. We will then check through our panel of lenders and provide you with an instant onscreen decision of a lender who has agreed in principal to offer you a loan.The loan amount that they offer you, will be based on your needs and circumstances.

What can I use a short-term loan for?

A short-term loan is usually a credit option that is used by people who have found themselves with an unavoidable expense that they can’t perhaps pay for right there and then. A short-term loan doesn’t have to be used for anything in particular - the use depends entirely on the person who takes out the credit. This could be anything from unexpected bills, a broken-down car that needs to be fixed, home improvements and repairs, or even debt consolidation.

How do I repay my short-term loan?

When applying for a loan with us, you will have provided details in your application for how long you wish to borrow for. You will then have been forwarded onto a lender who has agreed in principal to offer you a loan. You and the lender will then agree on the time period in which you are to repay the loan back. Your loan repayment will be in smaller more manageable instalments every month, rather than one lump sum.

Can you get a Short-Term Loan with less than perfect credit?

If you have a poor credit rating, lenders may still be willing to lend to you, but at a higher rate than was originally advertised. It is recommended that you check through your credit report before applying for any type of credit. There may be elements to your report that could hinder you from being successfully accepted for loans or credit cards, such as late payments, insolvencies or judgements.Credit Knowledge is a FREE* tool which you can use to understand and monitor your credit report and score and learn how to build and maintain your score,whilst also providing you with access to Discounts & Vouchers to save money across the high street, and the social reporting tool Knowso! Find out more here!

Choosing the right short-term loan for you?

There are many different lenders offering short term loans at a range of different rates, but it is important that you choose the right option for you. Here at The Loan Tree, we can help you find the most suitable lender that is willing to lend to you today. If you are still unsure, comparison site Supacompare has a wide range of short-term loans for you to compare! 

If you’re need a short-term loan, we could help! Click here to find the right loan for you.

Dec 11, 2019

Life can throw unexpected things our way, and this could involve making a purchase that we are not prepared for. A personal loan can help with covering the cost of anything from a new washing machine to an unforeseen bill. A personal loan can aid you by covering this unexpected cost up front, leaving you able to pay it off monthly in more simple and manageable payments that you otherwise would have.

What is a personal loan?

A personal loan is a type of credit that you can apply for that is for personal use, rather than business or commercial use. A personal loan can be either secured or unsecured. A secured personal loan is one which is secured against an asset of yours that is of value, for example your car or house. Furthermore, an unsecured personal loan is not secured against any assets, but the loan amount you are offered will be dependent on your income and personal circumstances. Generally, personal loans are unsecured, but you may be offered a secured personal loan if you have a poor credit score and credit history. This just provides the lender with some security and reassurance if you were to ever be unable to repay the loan but your asset, (e.g. car or home), may be repossessed if you don’t keep up your repayments.

If accepted, you will receive your personal loan in full, and then you will have arranged to pay it back with interest in instalments over an agreed period of time.

What is a personal loan used for?

A personal loan can be used for a multitude of reasons; whether this be a loan to purchase a new car, to pay some unexpected bills, to carry out some home improvements, or to pay for a wedding. The reasons for use of a personal loan are endless!

How much can I borrow with a personal loan?

As we mentioned before, a personal loan can be either secured or unsecured. Unsecured personal loans are usually for a smaller amount, generally under £25,000. A personal loan will generally need to be secured against your assets when the loan amount required exceeds £25,000.

What are the benefits?

Firstly, you will agree with your lender how much you are able to pay over a set period of time. This enables you to make smaller, more manageable repayments each month, and allows you to budget the rest of your finances. With a personal loan, you may be able to borrow more than you would with a credit card. If your credit card only has a small credit limit and you are looking to borrow more, a personal loan may be an option for you. Also, if you have multiple debts that you are paying off individually, a personal loan is an opportunity to group all of these repayments together into one lump sum. This enables you to pay one amount every month rather than several separate payments. If your loan agreement specified a fixed rate, then you can rest assured that you will be paying the same sum every month and the interest won’t vary.

Things to consider before applying...

Firstly, you need to consider whether a personal loan is the right option for you and if the repayments are something that you can comfortably afford to pay each month. Also, you may be paying a higher interest rate than what is advertised. If you have a less than perfect credit score, lenders may still offer you a loan, but at a higher rate of interest than what their example originally stated. If you would like to check your credit score before you apply for a Personal Loan, Credit Knowledge offers a FREE trial in which you can see a thorough breakdown of your report. Find out more here.

Getting a personal loan with SupaLoans

Here at SupaLoans we can help you apply for a personal loan by using the information you have given to us, to provide you with an instant decision on which of the lenders on our panel has agreed in principal to offer you a loan.

For more information or if you wish to apply for a loan, please visit https://www.supaloans.co.uk

Dec 10, 2019

What is a credit report?

In simple terms, your credit report is a tool used by lenders to determine if you qualify for credit such as loans,mortgages or similar services. It helps to indicate what kind of borrower you are; if you would be a risk or if you’re likely to manage your repayments. Your credit report contains information such as your personal details, credit account history and public records. When applying for credit, you are giving lenders access to your credit report – this is a part of the application process they use to determine your eligibility. All lenders have different requirements and so they assess your score based on their own criteria. They will set a minimum that you need to reach in order to qualify for your desired amount of credit.

What is a credit score?

All the data on your report contributes to the calculation of your credit score, which is just a number that shows lenders your creditworthiness. Typically, credit scores range from 300 to 850 and the higher your score, the more likely you are to receive credit from lenders. Behind the number itself, there are some main factors that are considered during the decision-making process and therefore it’s important to know what affects your score so that you can stay in control of yours and even make improvements over time.

What is considered a good or average score?

There is no specific number that will guarantee you approval. Also, due to different lenders having different requirements – you could be refused by one company and accepted by another with exactly the same credit score. Also, different credit rating agencies calculate scores in different ways, giving different results.However, most companies view a ‘good’ score as being somewhere between 881 and 960. A ‘fair’ score could be 720 to 880.

How does my credit score affect my ability to receive credit?

Your score, along with the information in your credit report are key ingredients in determining if you are eligible for credit such as loans, credit cards and mortgages. Overall, higher scores reflect a better credit history, making you suitable to receive loans with lower interest rates.

Everything you need to know about Guarantor Loans

Dec 9, 2019

What is a guarantor loan?

Put simply, a guarantor loan is a form of trust-based lending. If a friend or family member trusts that you will make repayments on a loan, then the lender should too. This requires the guarantor to co-sign the credit agreement, which means they are agreeing to step in and make repayments if you don’t.

A guarantor loan is most suitable for someone with less than perfect or no credit history as it increases their chances of being accepted. It effectively assures the lender that they will get the money back because the guarantor has made a promise to pay back the loan, should the original borrower be unable to.

To check your eligibility for a loan or to ensure you are in the best position to get lower interest rates, get your free* detailed credit report at: CreditKnowledge.co.uk. It’s a simple way to understand and monitor your credit report and score, 24/7.

What is a guarantor?

The guarantor for your loan must be a person aged between 18 and 75, with good credit history. If you are unable to make repayments, it will be the guarantor’s responsibility to do so; therefore, it is vital that they can afford it. This essentially means that a guarantor will only be approved if they have enough money to pay the debt, as well as handling their own finances. It usually helps if they are a UK homeowner.

Who can be your guarantor?

Your guarantor should be someone who knows you really well, or just someone who you are happy discussing your financial situations with. It’s very important that both parties understand and are comfortable with what is expected of them when you agree to take out the loan. It could be a family member or friend, but most importantly someone who is happy to help you out! In taking and repaying a guarantor loan, you can help increase your credit score. It can be almost anyone who meets the lenders criteria, which usually consists of any of the following:

• Aged 18-75
• UK homeowner / good credit
• Willing to pay if you don’t

If you don’t know a homeowner, don’t worry as there are also options for non-homeowners. Someone who is able to demonstrate that they have sufficient assets or wealth to cover the loan, is considered to be a trustworthy guarantor.

Are guarantor loans a good idea?

If you are able to make payments on a guarantor loan without any hitches, then they are absolutely a good idea! Whenever you repay a loan, the information is reported by the lender to a credit reference agency, which will update your credit score accordingly. Which of course means that your credit improves, making you qualify for lower interest rates on any future loans.

Before you apply…

Because guarantor loans often come with interest rates higher than average, it is worth exploring your options before applying, to see if you could save the money. The best loans are usually reserved for people with higher credit scores, so it would be good to try and improve this before hand.

It is also worth bearing in mind that guarantor loans can be more expensive than other types of loans. So make sure you need it before taking it out and make sure you can afford to make the repayments.

How do I apply for a guarantor loan?

Firstly, choose your desired amount and a term in which you wish to pay it off. For example, £500 over 2 months. Then you would need to give a few of your personal details, so we know who you are and if you’re eligible. Also we would need to know your full income details and your regular outgoings, to determine your affordability. After this, you’d need to give repayment details, so which bank account you would like the money to come out of and when. The final step is to let us know who you have chosen to be your guarantor.

What happens after I apply?

Our main goal is to ensure you receive your guarantor loan in the smoothest and quickest way possible. After completing the application, it’s important that we make sure you both understand your responsibilities and what is required of the guarantor if the borrower is unable to make any payments.

If the guarantor loan application is successful with one of our panel of lenders, the money should be paid out within 48 hours (depending on your bank’s processing time for payments received). It is also important to note that the loan is paid into the guarantor’s account for fraud protection reasons. It is then their responsibility to give the money to you.

The final thing you should know is that once the money has been paid out, the lender will keep both parties up to date with statements. Many lenders give the ability to see the balance whenever you want, by logging into your online account. Both you and your guarantor would have access to this information.

*3 day free trial, after which you will be charged £19.99 a month

Nov 27, 2019

WHAT IS A DEBT CONSOLIDATION LOAN?

When taking out a debt consolidation loan, people are usually looking for a personal loan with an amount that is big enough to clear all of their existing debt at once. This type of loan can be used to clear most debts - such as credit cards or any other loans. Of course, after consolidating these debts, the only thing left to pay off would be this loan. 

Debt consolidation is an attractive way for individuals who have a reasonable amount of debt, owed to more than one creditor, to manage and ultimately clear it. It is considered much easier to handle because instead of making multiple payments, of varying amounts, to a bunch of different creditors who may each be charging different interest rates, you are able to just keep track of one single payment. Similar to any other loan, there are pros and cons to take into consideration:

Pros:

• Debt consolidation allows you to sit back and take a breath. By consolidating your debts into one, it’s much easier to manage your finances and choose how you’ll clear your debt.

• This type of loan can also help you save you money in the short term and the long term. In short term, you might end up paying less each month than you have been doing, keeping more money in your pocket. In the long term, you might get a better interest rate and pay less over time.

• Your credit could improve - once you are able to pay off other credit cards and loan accounts, lenders can see that you are managing your finances responsibly. You could see your rating go up, if you maintain your payments to the debt consolidation loan.

Cons:

• Debt consolidation loans especially, can be more difficult to get if you have less than perfect credit.

• Taking out a debt consolidation loan is not the solution to all your debt, as you’re not removing it completely, you’re mainly making it easier to deal with. If you don’t pay off your existing debt with the new loan, you’ll continue to pay these creditors at the same time as repaying the newest lender and you’ll find yourself in a much more difficult situation than where you began. Because of this, you could consider alternative options before doing so.

• The term of the loan could be longer than the terms of debt obligations that you consolidated. This may cause the total interest cost to be greater than it would have been on the individual debts, even though the monthly fee is lower.

Before you apply...

Begin by working out how much money you owe: add up all the debts you would like to consolidate and include any extra charges you might have to pay off, (this may include fees for early repayment of some of the existing borrowing so check this before attempting to clear debts before the end of the term you originally agreed), then this will be the amount you need to borrow. You should then decide how long it will take for you to repay the money.

Bear in mind that the longer you take to pay the loan back, the lower your monthly payments are likely to be. However, if you borrow for longer you will pay more overall. Lastly, check out some comparison sites and search for the best interest rate. For example, Supacompare.co.uk has options. Making sure you look for the lowest APR would be a good idea for starters.

Adding to that, a debt consolidation loan may not be the best way to tackle your debts. It’s important to consider some alternatives that could be:

• 0% money transfer card - These cards are used to move money into your bank account. You may have to pay a relatively small transfer fee that’s usually a percentage of the amount you request. However, you can pay this off with the total balance over time interest free. The length of that interest free period depends on the deal you get from the card issuer.

• 0% balance transfer card - If you have credit card debts, you could use a balance transfer card to move what you owe to a new card. Similarly, you may also be charged a relatively small transfer fee that’s usually a percentage of the amount you request that can be paid back interest free for a set time. The length of that interest free period depends on the deal you get from the card issuer.

FAQ’s about Debt Consolidation loans

Q) Do I have to pay off all of my debts with the loan?
A)No, you can choose which debts you’d like to clear. But, if you keep any open you have to show that you can afford to pay them back alongside any new loan.

Q)Will the money be paid directly to my other lenders?
A)No, it is usually paid to you and then you need to pay them off separately.

Q)Does the lender have to run a credit check?
A)Yes, lenders will check your credit record to determine whether or not you qualify for the loan. Please note that this is the case for any loan and you should be wary of lenders that advertise an opportunity for a ‘no credit check loan’, as this is a vital part of the decision. If you are worried about your credit score, get access to your free*, personal report here: https://creditknowledge.co.uk.

Q)What happens if I cannot make my repayments?
A)You may be charged a fee and your credit record will be damaged, causing serious financial issues. If you ever get into this situation, contacting your lenders at the earliest possible time is advisable because many are able to agree a compromise to get you through a difficult period, although they’re not obliged to.

*Monthly fee applies after free trial. For more information or if you wish to apply for a loan, please visit https://www.supaloans.co.uk/

Nov 26, 2019

Winter calls for warmth and comfort, so if you haven’t already - it’s time to start preparing for the long, cold months ahead of us. Money can be tight sometimes but that doesn’t mean you can’t still have a beautiful, cosy home. If you want to make your home look amazing without spending a fortune, see our top tips on how to make it possible.

1. Add some throws, pillows and blankets.

Can’t afford a new sofa? Don’t worry! There are many stylish, affordable throws, blankets and pillows that will cosy up the feel of your home in a wink. If you are unsure of which colours to go for, get some inspiration from designs on your walls or floors. The more mismatched the better, experiment with different textures and fabrics for the maximum cosy impact.

2. Use soft lighting.

If you want to create a cosy atmosphere in your home, go for softer lights such as warm whites and yellows, instead of harsher hues. Soft lighting immediately makes a room more inviting and friendly.

3. Candles.

Candles are essential for anyone who is trying to add more cosiness into their space, they have the ability to instantaneously make any home feel warmer by casting a relaxing glow of light. They are the ultimate mood setter and another upside of them are the choices of delicate scents, all of which are available for pennies! If you like scents, you could also invest in essential oils or incense sticks for extra comfort.

4. Re-organise your furniture.

A few changes of your furniture can make a space feel more comfortable and it can also

help you save on heating bills. Bring sofa sets and chairs closer to the fireplace and away from doors or windows, don’t place them near a radiator as they will absorb heat. You may also want to add a rug in the living room for extra snugness.

5.Bring the outside, inside!

Winter isn’t a time to be spending excessive amounts of time outdoors but that’s not to say you can’t bring a touch of nature indoors. Having plants and flowers around your home will freshen up the space and feel more welcoming. Plant maintenance isn’t everyone’s favourite activity so why not consider faux plants as opposed to the real deal? They can look so realistic, guests won’t even know the difference.

6.Display things that say a little about you.

Fundamentally, feeling comfortable in your own home comes down to what makes YOU feel at home. Hanging photos of loved ones, artworks, quotes or symbols adds personality to any room and will create a more homely ambience in no time.

Nov 25, 2019

Have you found your dream wheels but don’t have all of the payment ready up front? A car loan can help you cover the initial cost and break the larger payment into smaller more manageable payments over an agreed period of time. A car loan can be a suitable option for you if you want to own the car from day one, and not have to lease or arrange a Hire Purchase Agreement with the dealership or manufacturer. By filling in the application form below, we may be able to find you the lender with the lowest rate that is willing to lend to you today.

What is a car loan?

A Car Loan is essentially a personal loan that someone may take out with a lender, with the sole purpose of buying a car. If you are looking at buying a car, whether it be new or second hand, utilising finance to buy the car outright ensures that you own the car from the moment of purchase. Whereas, if you were to lease the car (also known as Personal Contract Hire) you would never actually own the vehicle, and you would have to give the car back at the end of the lease.

If you have found the right car or are in need of a car ASAP and don’t have all of the money right there and then, a Car Loan may be the right option for you. A Car Loan enables you to spread the cost of your car over a longer period of time in more manageable payments each month.

How much can I borrow?

How much you would like to borrow for your car loan is completely dependent on how much you are willing to take out with a lender, how much you wish to spend on your new car and, of course, how much your lender is willing to lend to you. You may only need a small loan if the car is relatively cheap, or if you have already saved up most of the money, but you just need that little bit extra to cover the costs.

If it is a more expensive car that you are looking at purchasing, then you may choose to take out a larger loan over a longer period of time. Remember, different lenders will charge different interest rates on your loan, so it is recommended that you look around and make sure that you are choosing the best option for you. You can compare all of our car loan providers through Supacompare today!

Who can get a car loan?

To apply for a Car Loan with The Loan Tree, you must be over the age of 18, a UK resident, currently employed, and earning at least £800 per month. Lenders may have their own requirements, but by applying with The Loan Tree we will use the information that you have provide us to match you with the most suitable lender that agrees in principal to offer you a loan.

Lenders may check your credit report and score when deciding whether or not to offer you a loan. It is recommended that you check these before applying for a loan to make sure that all of the information on your report is correct. You can use our FREE* tool Credit Knowledge to check your report today!

Do I have to know which car I want before I buy?

Not necessarily! You may have already found the perfect car, and you just need a car loan to help you purchase it. On the other hand, you may not have found the right car for you yet, but you know what budget you would like to spend and so can secure a loan for that amount.

How much will it cost for me to take out a Car Loan?

With any loan, the amount that you pay back will depend on the interest rate and time period that you agreed with your lender.

*Terms apply. Please see site for details.

For more information or if you wish to apply for a loan, visit https://www.supaloans.co.uk/

Dec 16, 2019

If you have found the perfect holiday destination but aren’t sure how you’re going to pay for it all upfront, a holiday loan could be an option to consider. A holiday loan is a fixed-rate personal loan that you’d apply for so that you can make simple, smaller payments towards the cost of your holiday. By filling in the application form below, we can look to find you the lender with the lowest rate that is willing to lend to you today.

Nov 12, 2019

Shopping, whether it’s for clothing, food or random beauty products, can quickly become an impulsive, emotion releasing habit. Let’s imagine you see a fairly nice coat with 50% off and you buy it, although you already have twenty warm enough coats in your closet. We’ve all been there. Mindless shopping can temporarily satisfy you, yes. Maybe for a month, maybe for a week, maybe for an hour. But it can also lead us to spending much more than we can afford, causing lots of stress and worry about our finances.

If as you’re reading this, you’re feeling guilty about that unnecessary purchase you just made or if you consider yourself stuck in the trap of shopping for fun - below are some useful tips that can help you become a more conscious buyer.

Make a wish-list.

When shopping, it’s a good idea to create a list of things you genuinely need. This can be kept in a notes app on your phone so that you can refer to it easily when need be. If you find yourself contemplating on getting an item, ask yourself: Is it on the list? If not, do I really need it? This will give you time to think twice on what it is you’re buying.

Analyse any purchase.

Before going to the counter, not many people think about how useful the product will be for them. It’s important to consider if you’ll even make use of it often and, if you will, how often? What will you use it for? How long will it last? Is it worth the money? The main thing to concentrate on is whether you’re buying it for the quality and not the quantity. If you do this beforehand, you’ll find that you’ll very likely end up spending less.

Understanding your necessities and priorities.

Recognising what you value most in life and focusing on it makes it much easier to prevent overspending. Things like food, shelter, basic utilities, childcare and transportation are some of the main things that would be of prime concern. Thinking like this will also help you save money for what it is you want most when you look at the bigger picture. Perhaps you want to travel, upgrade your home or buy a new car; whatever it is, consider how your spending can affect these goals.

Know what triggers you personally.

We are prompted to shop for all different kinds of reasons; boredom, low self-esteem and entitlement are just a few. Something as little as buying a new lipstick or a new pair of shoes is enough to better your ‘bad mood’ for a while. However, sometimes when we experience emotional turbulence, it can encourage us to feel like we deserve to spend money on ourselves. Of course, everybody is deserving of a treat every now and then, but it’s knowing that you don’t need to get a whole new wardrobe!

Plan to shop.

If you plan your shopping ahead of time, you have more time to figure out your purpose and what you are really in need of. Before shopping you should always determine what you intend to buy and how much you plan on spending. This way you should avoid making impulse buys. Your list can range from food items, to Christmas gifts, to new house decor - just make sure you know before you go.

You probably realise that the excitement of whim shopping never lasts. Hopefully these tips will help you to control the urge to buy something just because of a sale offer or because it looks pretty. Saving and having the money to buy things you genuinely need will be much more beneficial to you in the long run.

For more tips on how to save money or if you wish to apply for a loan, please visit https://www.supaloans.co.uk