Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
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Pounds to Pocket
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Pounds to Pocket Lending FAQs
Can I get a loan from Pounds to Pocket?
This question depends on the potential borrower. Pounds to Pocket requires borrowers to be at least 18 years old, along with having a valid bank account, evidence of employment and UK residency. As far as credit rating, we consider all applicants based on their individual credit history and associated risk.
How long does the lending process take?
This is variable based on the potential borrower's credit history and the lender's evaluation process. At Pounds to Pocket, we perform an individual status review with Credit Reference Agencies for every application received. Depending on an applicant's credit history, this process is usually completed in under 30 minutes (may take additional time),¶ and if the borrower is approved, funds can be delivered to their account within 10 minutes after approval.§
What are the lending options at Pounds to Pocket?
Pounds to Pocket offers its customers the LoanBuilder, a personal loan option created to cater to each individual borrower's unique financial situation. With variable loan amounts available up to £2,000,† customers can apply for a loan capable of handling a variety of situations and circumstances. And thanks to fluid repayment periods anywhere from six to 12 months, customers can select a loan that suits their needs without straining their ability to repay.
What can I use a loan for?
We recommend to all of our customers that loans be used in emergencies. While the definition of 'emergency' can certainly change depending on who you ask, we define them as unexpected complications with substantial costs attached. Whether this means auto repair, home reconstruction or some other unplanned for emergency, it's important to remember that these short-term loans should be taken on only when absolutely necessary.
Does Pounds to Pocket report to the credit industry?
Short answer: Yes.
Long answer: Pounds to Pocket reports its customers' repayment habits as positive or negative, depending on their ability to repay their loans on time. Specifically, if a customer makes on-time payments and completes their repayment schedule by the planned date, Pounds to Pocket's report should reflect a positive change to their credit score. If their payments are late, chances are that the Pounds to Pocket report will impact their rating negatively.
Does Pounds to Pocket offer loans shorter than 6 months in duration?
No we do not, but you can visit QuickQuid for more information about the short-term loans available from our sister website. Borrow over 1, 2 or 3 pay periods, and if approved, cash will be sent within 10 minutes after approval.
More Information About Credit
Alternative Loans for Bad Credit
Frustration doesn't even begin to explain the feeling you get when your adverse credit prevents you from receiving a much-needed loan from the banks. Pounds to Pocket may be able to help you with our alternative to payday loans for bad credit‡ so that, if you're approved, you can get the money you need for important items or milestones in your life. Apply now and let Pounds to Pocket help you!
Who will lend to a person struggling with their credit rating?
When deciding whom to lend to, lenders typically use an underwriting model that analyses an applicant's credit history. On the whole, people with a solid credit history are more likely to be approved for a loan, while people with poor credit are more likely to be declined or receive less favourable loan terms. A "bad credit loan" is a term used to refer to loans that are made to customers with bad credit.
The first priority for any potential borrower should be improving their credit. This means evaluating your existing lines of credit, making a plan to repay them on time, even considering debt consolidation. Reducing debt may not build your credit as quickly or efficiently as you would like, but getting back to zero means creating a foundation to rebuild your credit upon, and that should be your top priority.
As you might imagine, not all lenders will make bad credit loans. People with bad credit are considered more likely to default on loan payments, and some lenders will not take on that risk. Other lenders are more willing to accept credit risks than traditional lenders, such as banks and credit unions, or even a majority of subprime non-traditional lenders. If a lender does provide loans to people with bad credit, the interest rate is normally very high.
How are credit ratings determined in the UK?
In the UK, there are three credit reference agencies tasked with compiling your credit report: Experian, Equifax and Callcredit. These agencies compile relevant credit information from a variety of sources, including the electoral roll, county court judgements and financial institutions. This information is sold to lenders by the agencies, and used to determine if a potential customer will be granted a loan application or provided with a credit card.
The contents of these reports are generally consistent for every customer, and include a credit history, any instances wherein your credit has been reviewed, the name of your current account provider, and county court judgements, house repossessions or bankruptcies. The credit history makes up the better part of your credit report, listing your credit accounts, dates they were opened, any missed payments and the credit limit or loan amount. Details of your accounts remain in your report for six years after settlement, while credit cards will remain indefinitely if they aren't closed.
When a lender accesses your credit report, they're analysing your collective credit history to assess the risk of lending to you. They look at all the assembled information, keying in on the elements that suggest a credit risk - late or missed payments, overages on limits, bankruptcies or house repossessions.
Why might I have bad credit?
Bad credit can be a scary prospect, and it's one that plenty of Brits face every year. While knowing your credit rating is an important step towards improving it, it can be just as important to understand exactly how your credit score got where it is. While you may not be able to trace your score back to each and every late payment, understanding more generally how a score is built can keep you from making mistakes in the future.
In many cases, a poor credit rating will result from failing to adhere to a credit agreement. This can mean late or missed payments on anything from a traditional loan to standard credit card payments. However, credit agreements aren't the only territory where late or missed payments can result in a lower credit rating; being late with a utility payment can also hurt your credit, as some utility providers report their customers' payment information to the credit reference agencies.
Unfortunately, making payments on time is no guarantee of a strong credit rating. If you've never borrowed money, it's likely that your credit history lacks the heft that lenders typically look for. Because lenders use a credit rating to understand how likely a potential borrower is to repay, having little-to-no credit history could end up hurting you as much as having a bad credit history — it won't serve to inspire confidence in a lender.
Applying for loans with less-than-perfect credit‡
To be eligible to apply for loans with less-than-perfect credit,‡ you need to meet a few requirements. You must be at least 18 years of age and a resident of the United Kingdom, as well as have access to a bank account with direct deposit and a steady income. If you meet these criteria, you can apply online from the comfort and privacy of your own home.
Once Pounds to Pocket determines that you meet our responsible lending criteria and the loan is affordable for you, you could be approved in 30 minutes or less¶ and have cash sent to you within 10 minutes after approval at no extra cost.§ So what are you waiting for? This is the perfect opportunity to find an alternative to loans with no credit that you couldn't get from a bank. Get started now and you could have cash in no time, if approved!
How do I rebuild my bad credit?
Answering this question can depend on your personal credit history. For instance, an individual who hasn't found themselves with an opportunity to build much credit and has missed some payments on the credit they have built will have far less to do than someone who has just experienced something dramatic, like house repossession or bankruptcy. While the former may only need to establish a strong line of credit, and make payments on time, the latter may require more dramatic action over a longer period of time.
There are, however, actions you can take to rebuild credit, no matter what the state of your credit history. You can start small with a basic, department store credit card. This is a quick and easy way to give yourself a little momentum with a smaller line of credit that you can pay off regularly. Another option is creating a strategy wherein you establish more accounts with a plan in place to pay them off promptly. This is a good way to energize your credit dramatically, assuming you have the means to handle multiple accounts.
It also never hurts to ask for help. If you have multiple strains on your credit, consider speaking with a debt consolidator about combining them into one. This simplifies the repayment process and, perhaps even more importantly, looks good to potential lenders.
Finally, do your best to keep the balances on your accounts low. If you can prove to creditors that you are capable of maintaining a relatively low amount in your accounts, they will consider you far less of a credit risk.
How will taking out a loan affect my credit?
This is a hard question to answer, as it can vary a great deal from one lender to the next. Because each lender creates their own set of criteria for evaluating a potential borrower, it's hard to say exactly how taking on a loan will affect your credit from lender to lender. However, the general truth regarding loans and lenders is simple: Pay off our loan on time and it should reflect positively on your credit rating. Keep in mind, however, that taking out a loan or accumulating too much debt may affect your credit rating.
If you take on a loan, you're accepting the responsibility of repaying that loan in a timely manner. Effectively you're making a pact with the lender that you'll make payments on the agreed upon dates for the agreed upon amounts. Breaking this contract - like allowing your credit card balance to go unpaid or declaring bankruptcy - makes it clear to creditors that you're a risky proposition.
In some cases, the kind of loan you're taking on could affect your credit (like many aspects of the credit process). If you have questions about how a loan might affect your credit, your best bet is contacting the lender directly. Ask the lender specific questions about the ways that they review credit. While they may not be required to answer every last query, it's always a good idea to compile as much information as you can before making your decision.
Could debt consolidation improve my credit?
Debt consolidation - the act of combining various existing debts into one - is an option that many individuals with outstanding debt may consider. While you may have reached a point where debt consolidation feels like your only option, it's important to understand when and why it could be the right move.
One of the primary benefits to debt consolidation is that, in addition to simplifying your loan repayments from many to one, you may diminish the interest you're paying on your outstanding debt if, for example, you get a lower interest rate on the new debt. If you have, for instance, three outstanding loans, you're paying interest on all three of them - in consolidating your debt, you will also consolidate your interest payments down to one.
On the other hand, debt consolidation could end up hurting more than it helps. In some cases, debt consolidators might insist on a longer repayment period, effectively voiding the benefits of the lower interest rate and potentially costing you more over time. If your debt consolidation loan is secured, and you use personal property to serve as the loan asset, you could end up losing that property if you're unable to make repayments on time or in full.
As to whether or not debt consolidation will improve your credit, this depends on a number of different variables, and is far from guaranteed. That said, the act of consolidating is no guarantee that you'll be able to repay on time, and as with any loan, you should always consider your budget and financial commitments before agreeing to a loan duration and repayment amount.