Debt Consolidation Loan
Debt Consolidation Loan
With our debt consolidation loan, you could roll multiple repayments into one monthly repayment, helping you save money and manage your outgoings.
With our debt consolidation loan, you could roll multiple repayments into one monthly repayment, helping you save money and manage your outgoings.
What is a debt consolidation loan?
A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.
You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.
Why take out a debt consolidation loan?
A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.
You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.
What kind of debts can be consolidated?
A consolidation loan can be used to pay off multiple credit cards, store cards, overdrafts and other personal loans. This helps simplify debt by keeping it all in one easy and manageable place.
You may also use a debt consolidation loan to pay off existing credit you are currently repaying that has a higher APR than what we charge.
Can a debt consolidation loan improve my credit score?
As is the case with most loans, if you don’t keep up with your repayments throughout the term of the loan, then it can negatively affect your credit score. That said, if you decide to switch your existing debt into one monthly repayment, you may find it easier to stay on top of your finances.
Regularly repaying a debt consolidation loan (on time) could help improve your credit score in time.
How much can I borrow?
We offer loans from £500 to £25,000. The amount you can borrow is dependent on your personal circumstances. We assess your personal circumstances through a credit check as well as other affordability checks so we can make an informed decision.
What is the maximum repayment period?
The repayment period for our loans is dependent on the amount you are borrowing and loan purpose. The maximum period of time that you can repay your debt consolidation loan is 72 months. The minimum repayment period is 12 months.
What is the APR for your debt consolidation loans?
Unlike other lenders, our rates are tiered based on the amount you are borrowing. Meaning, you will know exactly what rate you would be charged before applying. Our rates for our debt consolidation loan are as follows:
To view what rate you’d be charged, scroll down to our loan calculator or click here.
Can I repay from my salary?
Repayments for a debt consolidation loan may be made by payroll deduction where the facility exists, otherwise by Direct Debit. To see if your employer has payroll deduction set up with ourselves, click here.
Do you perform a credit check?
Yes, it is our policy to perform a credit search with every loan application. This is to help ensure we are lending responsibly and protecting the interests of the members who save with us, however, the approval decision does not rely solely upon your credit score. All our loan applications are assessed by considering income and expenditure, level of debt and ability to repay.
Are there any fees or charges?
There are no set up fees or hidden costs for our debt consolidation loan.
Can I repay my loan early?
There are no charges or penalties for early (in full or part) repayment. If you wish, you can pay off part of your loan with a lump sum. Your monthly repayments will stay the same, but the term of the loan will be reduced and the total amount of interest paid reduced. You also have the option to overpay your loan. Either way, there are no penalties.
Will my interest rate change?
The APR of your loan is fixed for the duration of the term.
Am I allowed to apply?
You are more likely to be accepted for a Personal Loan if:
You are less likely to be accepted if you:
We’ll make a decision on whether to offer you a loan based on your personal circumstances.
We regret that we are unable to offer you a loan if are insolvent at the time of applying or have been discharged from insolvency less than 12 months ago.
*Meeting these criteria does not guarantee acceptance.
How do I apply?
If you are already a member, you can apply for a loan via our online banking or mobile app. Alternatively, you can apply over the phone by calling 0121 700 1222, where a member of our team will be happy to talk you through the process.
If you are not already a member, but you would like to join and borrow in one convenient application form, please click here.
What if my loan is not approved?
If you do not qualify for our Personal Loan we may offer you one of our other products, such as the Credit Builder or Emergency Loan.
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