Before You Apply For Credit
Are You Sure You Need A Loan?
You may not actually need a loan. There are other options that you should first consider. These include getting a part-time job or saving more.
For some students, finances can be tight. As we have said elsewhere on this website, it is not that we only work with students — it is more that we have designed information on the site with students in mind. In fact, by the end of this page, you may even believe that we do not want you to get a loan. Of course we do, but only if you can afford it and it is right for you.
We suggest that this process begins before you press the apply button. We would ask you to consider the following points.
Why do you want the loan?
The loans you will get through this site are not "student loans", they are loans for students. A student loan is usually very low interest and often not repayable until you start earning. These loans often have much higher interest rates and need to be paid back over a shorter period.
If you want a loan for a new textbook, a rent shortfall, a course trip or to get home in an emergency, then these may be suitable for you.
If you want a loan for a big party, a beer festival, a trip with your mates or one of the many other extracurricular activities that students get up to, then this is probably not the right solution for you.
How are you going to repay it?
Like all loans, these loans will need to be repaid. They have relatively high interest rates, and therefore non-payment can cause you serious financial difficulties.
You need to ensure that you can meet the future repayments on the loan in the coming weeks and months. If you usually have a surplus, or it is nearly the end of term and you have a summer job lined up, then you may have sufficient to repay it. If on the other hand you normally only just survive on your weekly, monthly or termly allowance, then you will have no surplus to repay the loan — and should not borrow.
Can you get the funds elsewhere?
While of course we would like you to apply through us, we would be irresponsible if we did not suggest that you first see if you could get the loan elsewhere. Maybe the bank of Mum and Dad could help, or a friend may be able to lend you a small amount of cash. These are all likely to be cheaper than a loan with us — yes, we have said it.
If, having read this, you feel the loan is suitable and the right choice, then please feel free to apply. If not, thank you for visiting our site.
Free and impartial money guidance is available from MoneyHelper.