Thinking of applying for a loan and want to know how long you’ll have to wait for the cash?
Well, the thing is, there’s no straightforward answer to this question. It all depends on the lender you’ve chosen, you see.
Here at Ocean, the wait between your loan application being approved and you receiving the funds into your account is typically a week. However, we may need more information from you to process your application – like asking you to send us some payslips, for example. In this case, you may wait a little longer for your money.
When will my first repayment be taken?
This question is perhaps just as important as the one above. Usually, your first repayment will be taken out of your account by Direct Debit one month after the date you received your loan. If there’s a particular date you want your repayment to be taken – after payday, for example – speak to your lender.
Before you apply
Now you know how long you’re likely to wait to receive the funds from a personal loan, you should think carefully about applying. A good place to start is by asking yourself why you want a loan.
If there’s been an emergency, you car’s broken down perhaps, you may not have the funds available to pay for repairs or a replacement. In this situation, a loan could provide you with the money you need, but you should be sure you can afford the repayments before you apply. If you can’t, a solution to your problem could become a problem in itself.
"If there’s been an emergency, a loan could provide you with the money you need."
But if you don’t need the money for an emergency, you can take more time to work out how much you can afford to pay back each month and therefore borrow. Check out our loans calculator – by entering how much you want to borrow, how long you’d like to spread your repayments over and the APR you’ve seen advertised, it will estimate how much you could pay each month.
The reason it’s so important to only borrow what you can afford is that if you miss your repayments your credit history will be damaged. This will make it harder for you to borrow in the future. Plus, if the lender you apply to thinks you may struggle to pay them back based on the information you provide, they might reject your application anyway.
Give yourself the best chance
You’ve decided that taking out a personal loan is the right move for you and you’re confident you can afford the repayments. Now you need to give yourself the best chance of being accepted for the right deal for you.
A good place to start is by looking at your credit history. A personal loan is not secured to anything you own, which means lenders rely on your credit history to work out what type of borrower you are and how much risk you present.
If your credit history isn’t in the best state, perhaps because you’ve missed payments in the past, they’re likely to conclude you’re not a responsible borrower and they may not trust you to pay back the money you owe them.
On the other hand, if your credit history shows that you never miss a payment or go over your credit limit, it shows you’re a reliable and trustworthy borrower.
"You can check your credit history for free."
Your credit history doesn’t only play a role in whether or not your application is accepted, but also in how much you’re able to borrow and the level of interest you’re charged – so it’s a good idea to make sure it’s in the best state it can be.
You’ve probably heard this advice a million times, but with credit you’re not just looking for the best deal but the best deal for you. By that, we mean a deal that meets your needs and for which you’re eligible.
The thing is, you may not be eligible for the most competitive deals out there, particularly if your credit history isn’t great. But each application for credit you make leaves a ‘hard footprint’ on your credit history. Lenders can see this, and if they see a few spaced close together, they may conclude you’re desperate to borrow – even if the reality is that you keep getting turned down and having to start again from scratch.
"Give yourself the best chance of being accepted."
That’s why it’s so important to give yourself the best chance of being accepted by applying for the deals for which you’re eligible. ClearScore, CreditMatcher and Noddle all offer a comparison service that suggests deals you qualify for with your current credit history.
We hope that’s answered your question – and told you a little more about applying for a personal loan too!
Disclaimer: All information and links are correct at the time of publishing.