Frequently Asked Questions

  1. What loans are available on this site?
  2. Why are there no bank loans on the site?
  3. Why can't I apply for a loan through the site?
  4. Why do the loans on this site have such high APRs?
  5. How do I get more information on these loans?
  6. How do I apply for a loan?
  7. Where can I go for advice on borrowing money?
  8. Do I have to put up any security to get a loan?
  9. Is there any payment protection insurance?
  10. What happens if I fall behind on repayments?
  11. What is home credit / home collected credit?
  12. How do I compare cash loans on this site?
  13. What is Total Charge for Credit?
  14. Are there any extra charges?
  15. What happens if I miss a payment?
  16. Why does this site show loans I didn’t search for in the form of a 'Representative Example'?
  17. Why are two rates of interest shown; i.e. representative APR and rate of interest?
  18. Why isn't the home credit lender I've been borrowing money from on this web site?
  19. Why didn’t my search for a loan return many, or any, results?
1. What loans are available on this site?
Lenderscompared.org.uk provides information on small loans, typically from a few tens of pounds up to a few thousand pounds, where repayments are made in cash. Home collected loans are those where an agent calls at your home to collect repayments. Other cash loans are also included where the repayments are made in cash at a local collection point or office.
2. Why are there no bank loans on the site?
Most banks only take repayments by direct debit, so are not included on this site.
3. Why can't I apply for a loan through the site?
To maintain independence from lenders this site doesn't accept applications for loans directly. Please contact the lender using the information provided to apply for a loan.
4. Why do the loans on this site have such high APRs?
The APR is generally high for small, short term loans, particularly where they include any costs of home collection. The cost of the credit is often a better indication of value, although the APR may be useful when comparing loans of similar duration. You will need to think about the length of the loan and whether you can manage the repayments for the full period.
5. How do I get more information on these loans?
Please contact the lender to find out more information about these loans.
6. How do I apply for a loan?
Please contact the lender to apply for a loan.
7. Where can I go for advice on borrowing money?
8. Do I have to put up any security to get a loan?
No, you will not normally be required to put up any property or other security in order to get these loans, or to obtain a guarantee from another person.
9. Is there any payment protection insurance?
Most home credit loans will not come with payment protection insurance (PPI). Most credit union loans come with loan protection insurance at no cost to the borrower. This means that you will not leave a debt behind if you die whilst repaying the loan. Some credit unions also offer extra insurance against unemployment or disability but this is optional and not taking it won't affect your ability to get a loan or the terms of the loan.
10. What happens if I fall behind on repayments?
Please contact your lender and explain the situation and you may be able to agree a satisfactory solution. If you are behind by more than four weekly payments (or two monthly payments) the lender will generally be required to send you an arrears notice, together with an OFT information sheet listing sources of free debt advice and information. You can ask the lender for these details at any time if you are worried about keeping up repayments.
11. What is home credit / home collected credit?
Home credit is also known as home collected credit. When using home collected credit an agent will call at your house (normally weekly) at an arranged time to collect your payments.
The costs are usually fixed and up front, and you will not normally be charged any extra for missed or late payments.
12. How do I compare cash loans on this site?
Enter the amount you wish to borrow, over how long you want to borrow it for and your postcode. Then choose whether to look at home collected loans, or all loans. You can also choose how to sort your results, the best way usually being by cost of the credit as this shows you how much more than the original borrowed you will have to pay back.
13. What is the cost of the credit?
The cost of the credit is a good measure of value for short term loans. It shows you how much it will cost you to borrow the amount you want. It includes interest and other charges, such as for home collection, but does not include any charges for late or missed payments.
14. Are there any extra charges?
Most home collected loans will not charge extra for late or missed payments, or ‘default charges’. Where they do, this should be clearly indicated in the credit agreement, so check the agreement carefully before you sign up
15. What happens if I miss a payment?
See Q10 above.
16. Why does this site show loans I didn’t search for in the form of a ‘Representative Example?
This is a legal requirement under the Consumer Credit (Advertisements) Regulations 2010. It is intended to show a typical loan that consumers are likely to get if they respond to the advertisement. In most cases this will be the same as the loan you searched for, but it may not be – for example, if borrowers with a poor credit history are likely to be offered smaller loans, or charged a higher rate of interest, or if other loans would be more suitable.
17. Why are two rates of interest shown; i.e. representative APR and rate of interest?
Both are shown on an annual basis (even if you are borrowing for less than a year), but the rate of interest does not include non-interest charges. The APR includes all charges payable under the loan (other than charges for late or missed payments) so can be used to compare different loans – although the cost of the credit may be a better comparator in many cases.
18. Why isn't the home credit lender I've been borrowing money from on this web site?
They should be, unless they supply only a very tiny number of loans. Or it could be that they don’t lend the exact amount you searched for (see Q19) If, after trying different search criteria, you still can’t find your lender contact us and we will, if necessary, take this up with the Office of Fair Trading.
19. Why didn’t my search for a loan return many, or any, results?
It could be because you searched for an odd loan amount, or an amount which is above or below those generally available. For example, you may get more results if you search for a £100 loan rather than, say, a £105 loan, as some lenders will lend only in increments (glossary)