A fixed rate over a fixed term

A loan could be a good option if you want to: 

• Buy a car
• Pay off all your existing credit cards, store cards, overdrafts and other personal loans
• Add value to your home by upgrading a kitchen or building a house extension
• Fund your wedding or a holiday you’ve been planning for ages
• Get extra funds for any other acceptable reason

A loan could help you spread the cost of your purchase and give you a fixed payment plan to manage your repayments.

But you should know there are a few things a loan can't be used for:

• Buying or putting down a deposit on a property or land
• Household bills, rent or mortgage payments
• Car tax
• Business purposes
• Payments in arrears
• Tax avoidance arrangements 
• Court or solicitors' fees
• Gambling
• Buying shares or other investment funds

There are a few things to keep in mind when choosing a loan:

• The total costs of your purchase

It's a good idea to plan your expenses in advance. This will help you decide on the amount and borrow exactly what you need.

For example, if you’re thinking about home improvements project, take into account all your expenses such as materials, the cost of hiring contractors, any new furniture you might need. Costs can quickly add up and you don’t want to be in a position of taking too many loans in a short period of time. This could negatively impact your credit score.

• The loan price changes based on the loan size

Based on what you need a loan for, you could compare different loans and see how much interest you pay for each amount.

For example, if you wanted to borrow £7,400 over 5 years, the Representative APR is 7.9%, so in total you repay £8,924. If you borrow £7,500 and as the Representative APR drops to 3.9%, the total repayment is £8,253.

Please note, this is an example only, the rates you get and your total repayments are calculated based on your individual circumstances.