Implications of Non Payment
Lenders follow their own principles and policies regarding fees and interest if you don’t pay on time. While most of them will contact you by phone or letter to rearrange payment, remember that non-payment can lead to extra charges and increased interest rate which eventually affects your credit score. It’s important that you read the lender’s website’s charges section before finalising the loan.
Lenders usually contact you by phone, email or letter to arrange payment as non-payment can lead to charges and higher interest rates affecting your credit score. There is the possibility of your debt being passed on to a collection agency and consequent further charges with continued non-payment.
Make sure you contact your lender well before your repayment date if you plan to renew your loan. You will most probably be charged the same rate of interest and fees for the next month on the entire loan amount. The loan renewal/extension is automatic and leads to more interest and charges to your account in the event of a non-payment.
Frequently Asked Questions
How much will I be able to borrow?
The amount that a lender will offer an applicant can vary based on many factors, such as their term of employment and any current credit commitments. We offer personal loans from £100 to £5,000 but will use the information given to ensure they are lending money responsibly.
How long will it take to repay the loan?
The term of the loan can vary depending on how much you're looking to borrow. Our loan terms can vary between 1 – 24 months.
What is a Representative APR?
In layman's terms, a representative rate is an overall snapshot of what borrowers can expect to pay in interest. However, as different lenders will meet different levels of criteria, this can alter dramatically.
What information will I need to apply?
In order to apply for a loan with iThinkFinance, you will need to have the following information to hand.
Details of your income, along with any amounts you must pay in relation to rent or a mortgage.
A home telephone number (must be a landline)
Details of your residence over the last three years
The name and address of your employer
Why was my application denied?
There could be several different reasons why your application has been declined. Each assessment is concluded on your individual conditions and circumstances by a credit reference agency.
However, the most common reasons for why your loan application was rejected is due to the following-
•Your credit history This is probably the most important factor that goes into a lender’s decision. If your credit score is not up to par, then lenders may see you as a risk, and choose to decline. To check your credit score, visit Equifax.
•Your employment status or income If you are unemployed, have an unstable employment, or are not earning within a certain threshold, then lenders can be unsure about whether you would be able to keep up with your repayments.
•Too much debt It is typical of lenders to assess your debt to income ratio. Therefore, if your income suggests that you will struggle to pay off your existing debt, the lender may feel obliged to reject your application.
How do we contact you?
For any enquiries or questions you may encounter, please visit the Contact Us page.
Can i cancel my loan?
Yes. For any contract, there is a cooling off period. This just means that you have a period of 14 days to repeal your loan without suffering a penalty.
What does it mean if my application gets referred?
Having your loan referred indicates that the lender needs to make further assessments on your application. If this is the case, the lender will be contact you directly, so you can supply the required information.
Will i be accepted for a loan?
If you fulfil the following requirements, then you have a chance of being accepted for a loan:
You are a UK resident
You are employed
You have a UK bank account
You are 18 or over
Can i pay off my loan early?
Yes. The consumer credit act states that you have the right to repay either part or the full amount of the remaining balance early at any time.
Can i use my loan to pay off other debt?
Yes. This is what you call a debt consolidation loan. By taking out a new loan, you are able to pay off your previous debt, and then continue to pay off your new loan in manageable instalments, as you would with any other credit.
How do i get a copy of my credit report?
You can receive a copy of your credit report online at Experian. However, just be aware that a small fee may incur.
Do i have to pay a fee to fill out an application form?
You’ll be glad to hear that we do not charge any fees for our service.
What is the difference between a secured and unsecured loan?
Secured loans require that you provide an asset, such as your home, to secure your loan. Whereas, unsecured loans do not.
How do i make a complaint?
For further details on how to report a complaint, please visit our Complaints Procedure page here.