Is a loan right for you?

It’s hard to decide whether a loan is right for you. We believe that when it comes to borrowing money, you should have all the information you need so that you can make the right decision for your circumstances. We want to give you some tips and tools to help you choose the loan that’s the best fit for you.

About affordability

As a responsible lender, we complete affordability checks for every loan, even if you are an existing customer. This is to make sure the loan will be affordable for you now and for the length of your loan. We do this by looking at your bank statements to see your income and spending and also completing a credit check. 

If we can see the loan is not affordable, then we will be unable to offer you a loan at the time. We may be able to offer you a smaller loan with lower repayments, but this is not always possible. You can reapply after 30 days if your circumstances change. 

We like to reward our customers, so if you have a loan with us and you make all your loan payments on time you will get our cashback reward. Also, you might be able to get a lower price in the future with us if you apply for another loan.

Types of Credit

There are lots of types of credit and below is some information so that you can make the best decision for your circumstances.

What is a secured loan? 

A secured loan is a type of borrowing that allows the lender to take ownership of a borrower’s asset, such as a home or a car, if they fail to repay what is owed.

What is an unsecured loan? 

Unsecured loans are also known as personal loans. This involves borrowing money and agreeing to make regular payments until the loan is repaid in full, along with any interest owed. These are the loans we offer you at Moneyline.

What is Buy Now Pay Later? 

Buy Now Pay Later is when you buy a product and split the payments into instalments instead of paying the full price all at once. 

Instalment loan?

You pay what you owe over a number of instalments rather than in one lump sum.

What is a payday loan?

A payday loan is a small personal cash loan offered for a short term, usually around 30 days but always under 90 days. A payday loan, sometimes referred to as a cash advance, is an unsecured loan. This is not something we offer at Moneyline.

What is a home credit or doorstep loan?

These are usually unsecured cash loans delivered to your doorstep. You make regular payments, just like other personal loans. The main difference is someone will come to your door to collect the payments which is why it’s called home credit. Home credit or doorstep loans often allow you to pay weekly as well as monthly. At Moneyline, we are sometimes referred to as an alternative to home credit or doorstep due to our flexibility around repayments.

How to compare loans?

To help you make the right choice about which lender to choose, we want to show you some of the key things you should look out for when comparing your options.

Fees and charges: There are many loan companies that have hidden fees and upfront charges for their loans, such as admin fees, late payment fees or early payment fees. It’s always best to look at the detail to see what fees and charges a loan has. Moneyline has no upfront fees, late payment fees or early payment fees.

Company reviews: Company reviews are a great way to read about customer experiences. Using sites like TrustPilot is a great way to find out more about a company. You can see Moneyline reviews on here.

APR: APR or Annual Percentage Rate is the total cost of your borrowing, it also includes the standard fees and interest you will pay. Our loan terms we offer are a year or less, so APR is not the best way to compare. The total amount payable is often an easier way to understand how much you will pay back when a loan is less than 12-months.

It is always best to research loan providers before starting an application.

What should you do if your loan provider shuts down?

There have been many loan providers that have either gone into administration, are no longer providing new loans, or accepting new customers as they wind down operations. So, it’s important to know where you stand.

Providers that have stopped lending recently, include brands such as Morses club and Dot Dot loans.

Morses Club stopped lending in Nov-23
Dot Dot loans stopped lending in Nov-23
Cash4UNow (NovaLoans) stopped lending in Oct-23
Naylors loans stopped lending in Sep-23
6 Towns Credit Union loans stopped lending in Sep-23
Hastings & Rother Credit Union loans stopped lending in Aug-23

If you have a loan with any lender that has gone into administration you should continue making your payments towards your loan as normal, unless they ask you to stop. There’s a chance that you may not notice any difference when you’re making your repayments. By not paying the loan back, you risk damaging your credit rating and credit score.