Personal Loans

You can use a personal loan for pretty much anything you like. Some common uses include:

• Consolidating your debts into one manageable monthly repayment
• Holidays
• Home improvements
• Buying a new car
• A wedding

There are some things you can’t use your personal loan for such as gambling, or frivolous and excessive spending.

Taking out a loan is a big commitment and one that should only be considered if you genuinely need to borrow the money.

The interest rate you receive is usually based on your credit report and personal information. Loan rates are different depending on the lender, as each one will look at how well you’ve managed your money in the past to decide how much you can borrow, for how long and at what interest rate.

If you’ve been rejected for a personal loan, it’s more than likely because of your credit score or history. Some common causes include:

• Missed or late payments in the past
• Already having a lot of debt against your name
• Multiple applications in a short space of time
• A thin or non-existent credit history
• CCJs, bankruptcy or insolvency etc

No. While a good credit score increases your chances of being accepted, each lender has their own criteria and will consider other factors in addition to your credit score. These may include:

• Employment history - How long you have worked in your current and past roles
• Income - How much you earn
• Debt-to-income ratio – What you owe compared to what you earn
• Credit history – Whether you have previously missed or deferred on payments
• Residential status – Whether you rent, mortgage, or own your home

This said, you may want to read more about how you can improve your credit score before applying. There are also other benefits to having a better credit score, including access to higher loan amounts and lower interest rates.

First things first, don’t start making repeated applications, as this will only harm your credit rating further.

To improve your chances of being accepted you should:

1. Work on improving your credit report by:

2. Only applying with lenders who specialise in less-than-perfect credit histories - just like us. You can check your eligibility to see whether you will be approved before you apply.

Guarantor personal loans may be another option for people with a bad credit history. This is where a family member or friend agrees to back make your repayments if you are unable to. This will reduce the risk for the lender and increases your chances of being approved.

As with any type of credit, a personal loan can either help or hinder your credit score.

If you take out a personal loan and stick to making your repayments on time each month, over time it can improve your credit report, show you’re a responsible borrower and can give you access to better rates or deals in the future.

However, if you do not keep up with your repayments or pay on time, it can have the opposite effect. Missed or late payments can leave a negative mark on your credit history, making it harder to get credit again in the future.

It’s a good idea to set up a standing order or Direct Debit for your repayments, to make sure they’re paid on time each month.

If you do find yourself struggling to meet your repayments or able to pay on time, here are your options:

1. Short-term fix: if you’re struggling to make your payments on time or are unable to pay, get in touch with your lender straight away, let them know your situation, and see if they can do anything to support you - like giving you extra time to pay.

2. Long-term fix: if you think your circumstances are going to last longer than anticipated, still contact your lender to see if they can help, as well as asking for independent support from organisations like:

• Citizens Advice
• Money Advice Service
• National Debtline
• StepChange

Late or missed payments on a personal loan can harm your credit score.

To apply for a personal loan with Ocean, you must be a UK citizen residing in the UK, and at least 18 years of age.

At Ocean, our personal loans range from £1,000 up to £15,000. The exact amount you can borrow will be determined by your personal circumstances.

Depending on the amount you borrow, you can choose to repay your loan over 1 to 5 years.

A shorter term means that you can pay off your loan quicker, but you’ll have higher monthly repayments.

A longer term allows you to spread the cost further, meaning lower monthly repayments. However, as a result, you are likely to pay more in interest overall.

There may be options for you to pay off your loan early if the terms and conditions allow, but there might be additional charges and fees incurred if you do so.

Application requirements vary depending on the lender, but typically, you would need:

• Proof of identity
• Proof of address
• Evidence of your income and expenditure 

Initially, you’re likely to receive late payment fees, but if you miss several repayments, this will turn into a default, which can severely harm your credit score.

Following a default, the lender may take further action to reclaim the money owed. This could lead to County Court Judgments (CCJs) or debt collectors becoming involved.

If you’re struggling to keep up with repayments, it’s best to speak to your lender as soon as possible.