A simples guide

Compare Tesco loans

Every little helps and with a Tesco bank loan, you could help yourself to some things that might make life a little easier. Perhaps a new car or some much needed home improvements or maybe you just need that extra little bit to straighten out your finances. Whatever you need it for, here are the facts on a Tesco loan.

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What loans do Tesco offer?

You can stock up on more than milk and bread at Tesco as they offer unsecured personal loans from £1,000 to £35,000 with repayment periods of between one and ten years giving you flexibility to spread the cost. You can also be specific about the amount of money you want to borrow meaning you only have to take out what you need.

An unsecured loan means that you won’t have to provide any assets as security so you don’t have to be a home owner – but you’ll typically need a good credit score to get the best interest rates. But just because the loan is unsecured doesn’t mean you can run off into the sunset with a suitcase full of money – you’ll need to make sure you make your repayments on time and in full.

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What interest rates will I get on a Tesco loan?

That’ll depend of a number of factors. Firstly, if you’re a Tesco Clubcard member then you’re eligible for preferential rates because you’re already a valued customer. If not, then the rates might still be very attractive but not quite so handsome.

The interest rate you’re charged will also depend on the amount of money you want to borrow. You might find that if you want to borrow £2,999, borrowing just £1 more could give you a better rate of interest – at the current APRs a loan between £1,000 - £2,999 attracts a 17.6% rate but borrow between £3,000 and £4,999 then you could be looking at 11.7% instead.

Your credit history plays a part in determining the interest rate too so if you’ve got an unblemished credit score, then you’re more likely to receive the lowest rates available. If you’re not sure how good your credit rating is then it’s a good idea to check it. There are three credit reference agencies that all credit checks go through – Experian, Equifax and Callcredit – and you can check your credit report for free with all of them (bear in mind some will only offer free trials so make sure you unsubscribe before you’re charged).

Why might I choose a Tesco loan?

Tesco have made repayments simple, as monthly payments are fixed so you know how much you need to budget for. And it’s vital you stick to them because every time you’re late with a payment you’ll be hit with a £12 charge.

You’ll also get payment breaks of up to two months on your Tesco loan (if you meet the eligibility criteria) but you can only take this break at the start of the loan. This means you’ll start paying it back three months after you take out the loan. You’ll be charged interest during the payment break so the amount of interest you pay will be more overall.

As you’d expect from a retail giant, there’s also a Tesco banking app which will let you stay on top of your money. As for actually getting your loan, applying online will give you the quickest turnaround time – but the application would need to be straightforward and have no need for supporting documents. If you apply any other way, it’ll take about five days for the paperwork to be sent to you which you’d then have to check and return (along with any additional evidence required) and only after that will a final decision be made. You can speed things up by using a next day courier service – there’s a fee for this (£50) which will be added onto your first repayment so you don’t pay interest on it.

Is it for me?

If you already shop a lot with Tesco, have a Clubcard and bank with them, then it might make sense to take out a Tesco loan rather than a loan from somewhere else – but other loans are available so it’s important to do your homework before making a commitment. So before you apply online or pick up the phone, why not just take a few moments to use our loan comparison service.

 

All Tesco loan details are based on information provided on www.tescoback.com on 3 November 2016.

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