Personal Loans - Exactly How A Personal Loan Works
Personal loans can help you turn some of your most cherished dreams into reality. This type of loan offers you the freedom to use the funds as you please. In other words, it gives you the flexibility to borrow a loan that isn’t meant for any predefined spending such as the purchase of a car, real estate, or for any other purpose. You can use these funds as you please — to pay child welfare, court fines, settlement dues, medical emergencies, or even for a vacation.
So, the usage of the funds released under the personal loan is not restricted to any specific purpose. As long as you have the ability to repay the loan, your creditor should be willing to sanction it. That makes it ideal for those who wish to borrow a loan for multiple purposes or for general use. If that’s something you want to do, then here’s all that you need to know about borrowing personal loans in the UK.
FAQs | Personal Loans in the UK
- What is a personal loan?
- How do I qualify for a personal loan?
- Do you offer personal loans to those with bad credit history?
- Do you require a guarantor to sanction personal loans?
- How can I apply for a personal loan?
- Will applying for a personal loan lower my credit ratings?
- Can I get a personal loan on the same day?
- For what purposes is a personal loan borrowed?
- Does Money Pig offer personal loans?
- How much fee do you charge to process a personal loan?
- Can I buy a car with a personal loan?
- What if I fail to repay the personal loan that I borrowed from Money Pig's lenders?
- Can I use a personal loan to consolidate debts?
- Why should I trust Money Pig’s direct lenders?
- Is online fund transfer and repayment of personal loan safe?
- How can I borrow a low-interest personal loan?
Personal loans are traditional unsecured loans, which are advanced for personal use, without any restrictions on how the borrower wishes to use the funds. This type of unsecured loan is best suited for those who need immediate access to cash, which can then be used for various purposes. Such loans are usually advanced for a shorter duration. You could get a personal loan from your bank or any other financial services provider, depending on your credit scores and the preferred repayment period.
Most banks advance personal loans only to those who fulfill their mandatory criteria. Some of those include having a good credit score, full-time employment, and willingness to borrow the personal loan for a relatively shorter duration. Sometimes, banks may also require you to have a certain average monthly balance to confirm your ability to repay the loan. However, none of that is required when you borrow a personal loan from Money Pig’s direct lenders, who offer a more customized deal. We offer personal loans and other short term and long-term loans to those with all types of employment and credit scores.
Money Pig’s direct lenders require you to fulfill certain basic requirements in order to qualify for a personal loan. This requires you to be a UK citizen who has completed 18 years of age and has a UK bank account. Also, you must be fully capable of entering into a contract and must not be disqualified from that.
Unlike premier banks and financial institutions, Money Pig does not require you to go through rigid formalities. In fact, most of our customers have never visited our offices, but are offered the loan with minimal documentation. Also, we do not require you to be in full-time employment or have a good credit history. Money Pig’s direct lenders are open to advancing loans to those involved in all types of employments, professions, or businesses if they can repay the personal loan on time.
However, if you are a student, then we do offer student loans, which is another short term unsecured loan that we offer. The funds released aren’t restricted to academic purposes only and can be used to buy a car, pay your rent, or even upgrade your lifestyle. That makes it a great alternative for students who wish to borrow a loan for personal purposes.
Money Pig is not a direct lender, but an intermediary that has access to a broad network of licensed direct lenders in the UK. These lenders offer all types of long term and short-term loans, including personal loans. However, Money Pig is not involved in the business of direct lending but prefers to be a facilitator.
We believe that having the power to choose from a number of options helps you get a better deal than you otherwise would. So, we strive hard to give you that sort of power through Money Pig, a platform that connects potential borrowers with several direct lenders through a single personal loan application. That drastically minimizes the possibility of loan rejection and helps you meet your objectives, whether it is to get a loan on the same day or to bargain a low-interest deal.
Applying for a personal loan is as simple as filling in an online application and listing out your requirements. However, before applying, make it a point to explore the many personal loan alternatives that we have. Also, you need to be sure of certain essential facts such as the amount you wish to borrow, maximum interest rates that your willing to pay, and the loan duration. Finally, you need to take into consideration your goal and objective for which you wish to borrow the personal loan.
Once you have thought about all of that, you can file your online personal loan application on Money Pig’s website, and we will connect you to a whole bunch of licensed direct lenders. Once you have accepted the personal loan agreement offered by a certain direct lender, then the funds are transferred to your bank account. So, there is no need for you to spend hours scheduling appointments or paying personal visits to get a personal loan.
When you apply for a personal loan from Money Pig, your credit ratings remain intact because Money Pig and its direct lenders refrain from performing hard credit checks during the initial phase. So, when you put in your application, we only perform a soft credit check.
If you do not know about the types of credit checks, then you must know that there are two types — hard credit check and soft credit check. The hard credit check is a detailed verification and soft credit check is one that usually has no impact on your credit score. Moreover, soft credit checks show your financial records just as you see them. However, if the personal loan application is rejected, then the hard credit check can hurt the applicant’s credit score. The reason for this is simple! It indicates to the credit agency that banks or financial institutions are not willing to transact with you.
As a result, your credit score drops, but when you apply through Money Pig, we do things in a more methodical manner. Upon the receipt of your personal loan application, we only run a soft credit check to ascertain your repayment capability. On that basis, we put you through the best direct lender from within our network who is most likely to approve your personal loan. So, even if your personal loan application is rejected, it will not impact your credit score. Our direct lenders run a hard credit check only before sanctioning the loan, and not during the loan application review and approval stages.
Yes, you can get personal loans and all other types of short-term loans on the same day from our direct lenders. We understand that you could be dealing with an emergency situation, and therefore we offer same-day personal loans. If you have a pressing need for money and can’t wait until Monday, some of our direct lenders also offer same-day personal loans on the weekends and public holidays. So, do not hesitate to apply during an emergency. However, make it a point to mention the urgency in your loan application so that we take it up on a priority.
Every day, Money Pig receives hundreds of loan applications and although we process them very quickly, we would like to prioritize those who are dealing with emergency situations. So, let us know that you need a personal loan on the same day and we’ll do our best to connect you with a direct lender willing to sanction the same. We do this based on your credit score, repayment capability, job type, the sum required and certain other parameters. As we have complete information about the individual requirements of each direct lender within our network, we speed up the process by putting you through the one who is most likely to sanction your loan.
Personal loans are borrowed for several purposes, and that usually depends on the borrower’s debt behavior. While some choose to restrict it to emergencies only, there are also those who choose to borrow it for leisure activities such as going on a vacation. Again, there are also those who borrow it to pay for their basic necessities such as accommodation and groceries during a financial crisis. So, the purpose of borrowing a personal loan entirely depends on the borrower.
Money Pig does not charge anything from personal loan applicants, in order to process their loan applications. So, all our services are absolutely free of cost to loan applicants. However, we do charge direct lenders a small commission to run the show. We completely understand that those looking for loan options may not have the resources to spend on a loan application and processing fees. So, unlike our competitors, we choose to offer free loan application processing to all those who apply through Money Pig.
Yes, you can buy a car with the personal loan offered by Money Pig’s direct lenders, and we must admit that quite a few customers choose to do this. Our direct lenders also offer a car loan that you can use to buy a car. However, as in the case of most auto loans, the car's ownership would not be transferred to the borrower immediately. Instead, the ownership lies with the bank or the lender who advances the car loan, until the full repayment of the car loan. As a car depreciates much faster, most of our customers choose to buy it with a personal loan. When you buy a car with a personal loan, the ownership lies with you from the very moment you pay the car dealer. So, you are free to sell the car whenever you wish to. This lets you swap the car for a better one without watching it depreciate until you fully repay the car loan.
Yes, Money Pig has certain direct lenders within its network, who offer personal loans to those with bad credit history. So, if you are stuck in an emergency situation and cannot get a loan from your bank due to a poor credit score, then you need not worry. Money Pig can always find someone willing to offer you a good deal. So, if you can repay the personal loan that you wish to borrow, then one of our direct lenders would be willing to advance the same.
Low credit scores can be a big hurdle, especially when you apply for a personal loan from a bank or a premier financial institution. Most banks consider it risky to advance loans to those with poor credit history and reject the loan application without even considering the individual’s ability to repay the loan.
Even worse, they run a hard credit check on all personal loan applications which can further mess up your credit scores if your loan is rejected by that bank. At Money Pig, we consider that to be an archaic approach and think differently. We believe that your credit history is your past and must not hold you back from moving further with your goals and ambitions.
The answer to this question depends on your credit score and the amount that you wish to borrow. If your credit score is extremely low and we find out something that’s very unpleasant, then our direct lenders may ask you to furnish a guarantor with a good credit score. Likewise, if you have a good credit score but wish to borrow a larger sum, even then the concerned direct lender may ask you to furnish a guarantor. However, in most cases we sanction the loan without a guarantor, so do not be reluctant to put in your personal loan application and give it a shot.
Before you borrow a personal loan, you must be sure of repaying it entirely in order to avoid the aftermaths of defaulting a loan. Depending on the clauses mentioned in the loan agreement, the direct lender may initiate the necessary actions for recovery. Also, defaults and late payments are reported to the credit agencies and directly influence the borrower’s credit score. This, in turn, impacts the financial future of the borrower.
If you are in a tight spot and have no choice but to borrow a personal loan, then we recommend that you limit it only to the amount you wish to borrow. Also, negotiate the late payment and pre-payment clauses with the concerned direct lender before concluding the loan agreement. Not many people are aware of the fact that several loan agreements contain a prepayment penalty. This is imposed by direct lenders to make up for the loss of interest when the debt is repaid before the fixed tenure. So, although the consequences of failing to repay can be as severe as litigation, there are ways to create gaps by negotiating a certain number of permissible delays in the loan agreement's repayment clause. You can then use this time to find ways to repay your personal loan and avoid the consequences of a default.
Yes, if you are struggling with multiple small debts, then you can consolidate them by borrowing a personal loan. Although we offer loans to consolidate debts, you may not want to borrow that for smaller amounts. That’s when personal loans help consolidate debts because you are free to use it as you please. However, you must repay it according to the terms and conditions agreed in the loan agreement, between you and the concerned direct lender.
Money Pig carefully handpicks the best direct lenders from the UK’s financial services industry. These direct lenders are licensed and regulated by the Financial Conduct Authority (FCA). You can confirm that effortlessly by finding the direct lender in the FCA’s online register. If you do not find a direct lender on the online register or have any concerns about transacting with a lender, please write to us with the name of the concerned direct lender and the relevant screenshots. We will get back to you as early as possible and help resolve the issue or put you through another direct lender.
We understand your concerns about online payments and scams, which can occur due to many reasons. However, as far as Money Pig and its network of direct lenders are concerned, we follow the best cybersecurity practices to keep your personal and financial data safe. As you can see, all our websites have SSL Certificates and run on HTTPS. So, all the data exchanged between the servers is encrypted and safe. Nevertheless, you need to avoid using public WiFis in order to prevent interception of the data exchanged from your device to all your online accounts that contain financial details or provide access to sensitive financial data. This includes your bank’s website and other shopping sites where you may have saved your credit card details. Also, confirm whether your bank makes use of 2-Factor authentication and if they do, then keep your phone safe.
Borrowing a low-interest personal loan is much easier for those with a good credit score than it is for those having an average or a poor credit score. That’s because creditors find it easier to rely on those who have a proven track record. However, if you do not have a good credit score, you may still be able to pick a low-interest personal loan by structuring your debt.
One way of doing this is by borrowing fixed interest loans for a shorter duration. This spikes up your monthly repayments but brings down the overall interest that you pay. Also, the reason we recommend fixed interest rates instead of APRs is the fact that APRs are not calculated on the amount borrowed. Instead, it is calculated on the aggregate sum of the amount borrowed and the costs involved in processing the personal loan. On the other hand, fixed interest is calculated only on the amount that you borrow and remains constant throughout the loan period.
Money Pig’s low-interest personal loans are perfect for all your personal needs — whether it is to buy a new dishwasher, travel to your dream destination, or to pay your bills. Our direct lenders would be happy to offer you the best deals. For more details, Apply Now.