If you are thinking about a loan for a holiday, new car or maybe to consolidate other debt you may have been wondering if a Tesco Bank loan is the right option for you.
Tesco loans Facts:
- Borrow between £1,000 and £25,000
- Repayment periods from 1 to 10 years, depending on the size of your loan
- Fixed monthly payments on your chosen date
- Eligible customers can apply for a 2 month payment holiday
- Better rates in some cases for Tesco Clubcard holders
To be eligible for Tesco loans you must:
- Be aged between 18 and 74
- Be in employment with no probationary period, or have regular income e.g. pension
- Have lived in the UK for at least 3 years
- Have a UK personal current account
Lenders will advertise their personal loans with a Representative Annual Percentage Rate however this is not the amount you are guaranteed to get from taking out a loan with them, your actual interest rate will be dependent on numerous factors such as how much you earn and your credit history, they will also take this into consideration when they evaluate how much they are actually willing to lend you.
When taking out a loan of any amount you want to make sure you get the best deal, Tesco loans are just one option of many, shopping around could save you money. You can use the calculator on this website to compare over 200 different loans from over 20 different providers, to help you evaluate your options.
Before you take out a loan
Before you apply for a loan you should weigh up if you have any alternatives that may be better for your situation, for example if you currently have any savings it might be more beneficial to use them instead. This is because it could be that the interest you earn on your savings is less than you would be paying in interest on a loan, and remember there are other types of lending such as authorised overdrafts you may want to consider.
If you want a loan to consolidate you should check if spreading your payments over a longer term might mean that you ultimately end up paying more than you would under your current arrangements, even if the interest rate on the new loan is lower than you are currently paying.