Frequently Asked Questions
- Who is behind this site? Can I trust it?
- What loans are available on this site?
- What is a home credit loan?
- How do I use this site?
- Why doesn't my search return many or any results?
- Why isn't my existing home credit lender on this site?
- Why are there no bank loans on this site?
- Why are there no payday loans on this site?
- How should I choose between loans?
- Am I guaranteed to get a loan which is advertised?
- How can I tell which loan is least expensive?
- Why are some of the APR's so high?
- How do I apply for a loan?
- Why can't I apply for a loan through this site?
- Why do you show me details of two loans – the one that I asked about and the 'representative example'?
- What's a Credit Union?
- Why doesn't a loan from my local Credit Union show up in my search?
- What information do you keep about any search I make on this site?
- 1. Who is behind this site? Can I trust it?
- This site was set up on the instructions of the Competition Commission. It is a completely independent site which exists only to help you make a more informed choice in using home credit. For more information see the section on About this site.
- 2. What loans are available on this site?
- We provide information on home credit loans. We also provide information on other loans that you can repay without having a bank account.
- 3. What is a home credit loan?
- Home Credit is money that you borrow and then repay by paying cash to an agent who calls at your house at an arranged time.
- 4. How do I use this site?
- We have tried to make the site simple to use. Just type in the amount you want to borrow, choose how much time you want to pay off the loan and enter your post code.
- 5. Why doesn't my search return many or any results?
- It could be because you asked for a loan that is above or below the amount that a lender is prepared to offer. Or perhaps you searched for an odd loan amount such as £105 when lenders offer loans of £100 or £120. Try changing the amount of the loan.
- 6. Why isn't my existing home credit lender on this site?
- They should be here unless they make only a very small number of loans each year. It may be that you need to change your search to ask for different amounts of credit – see the answer to the question above. But if you think that any home credit lender is avoiding this site then please let us know and we will check further and, if necessary, we will pass the information on to the Competition and Markets Authority.
- 7. Why are there no bank loans on this site?
- Because banks rarely offer the option for you to repay in cash and they don’t collect repayments by calling at your home.
- 8. Why are there no payday loans on this site?
- Like banks, payday lenders do not allow you to repay in cash.
- 9. How should I choose between loans?
- Normally you will want to choose the least expensive loan. But you might also want to ask family and friends whether they have had particularly good or bad experiences with individual lenders.
- 10. Am I guaranteed to get a loan which is advertised?
- No. This site asks for no information about you other than your postcode. If you apply for a loan, each lender will then want more information from you to assess whether they can lend you money.
- 11. How can I tell which loan is least expensive?
- There are three indicators that can help you find the least expensive loan.
|Loan amount||Length of loan||Total amount payable||Cost of the credit 1|
|£100.00||14 Weekly Payments||£140.00||£40.00|
|Amount of repayments||Additional charges for the credit||APR 2||Rate of interest 3|
|£10.00 every week
||None||1068.5% APR||148.98% PA fixed|
Default and other charges: While not routinely applied we reserve the right to charge you any fees we incur in the instruction or involvement of third parties for: Tracing you, Returned Payments, Debt Collection, Court Action. No additional charges for home collection.
Restrictions / Other information: All loans subject to status. Loans not granted to minors. Written Quotations on request. Postal address only - no personal visits.
|Loan amount||Length of loan||Total amount payable||Rate of interest||Representative APR|
|£100.00||14 Weekly Payments||£140.00||148.98% PA fixed||1068.5% APR|
|Amount of repayments||Additional charges for the credit|
|£10.00 every week
The cost of credit is the extra amount of money you will have to repay to borrow your loan
The APR is the Annual Percentage rate. It tells you how much the lender will charge as a percentage figure for lending you the money but worked out on a yearly basis
The rate of interest tells you how much the lender will charge as a percentage figure for lending you the money
- If you are borrowing money over less than one year, the cost of credit is the most useful way to find the least expensive loan. It also helps that it tells you in cash terms how much extra you will pay to borrow the money.
- 12. Why are some of the APR's so high?
- The APR is a useful way of comparing loans which are repaid over a number of years. So if you are thinking of taking out a bank loan, or a mortgage, or a credit card, then you should definitely look at the APR. But the APR does not work well for short-term loans and it can make for misleading interest rates. This is why use the cost of credit is the best way to compare short-term loans.
- 13. How do I apply for a loan?
- Each loan shows the contact details of the lender. Please contact them direct.
- 14. Why can't I apply for a loan through this site?
- It would affect the independence of this site if we offered loans or provided a direct link to the loan companies. Websites that offer loans normally exist to make money and they do this by taking money from lenders that advertise on their site. This means they may be tempted to encourage you to apply for some loans over others.
- 15. Why do you show me details of two loans – the one that I asked about and the 'representative example'?
- The law says that we must do this and it’s meant to help you. The representative example shows how much a lender will charge most people. So by comparing how much you would be charged with the representative example, you can see whether you are being charged a higher or lower amount. But don’t worry if this is confusing – the important thing is that you compare the loans that are offered to you.
- 16. What's a Credit Union?
- Credit unions are financial co-operatives that offer savings accounts, loans and other financial services to their members. Most people can join a credit union because of where they live or where they work. Credit unions can't, by law, charge more than 2% a month interest on the reducing balance (26.8% APR), so a £300 loan repaid over 6 months would cost no more than £22 in interest. You can search for a credit union you may be able to join at www.findyourcreditunion.co.uk
- 17. Why doesn't a loan from my local Credit Union show up in my search?
- Credit Unions that allow repayments in cash can choose to include their loans on LendersCompared. But they don’t have to and some credit unions may choose not to be included.
- 18. What information do you keep about any search I make on this site?
If you still have questions after reading this section of our site, or if you need general information and advice on money issues, we suggest you contact the government backed Money Advice Service. This is a free, independent service which provides help via the web, or by telephone, or face to face. See the website at www.moneyadviceservice.org.uk