Thursday, 29 October 2020

Barclays Personal Loan Review

Barclays Personal Loan Review
22 Mar
1:29

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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Barclays

APR

5.74%
To
18.99%

Credit Req.

700

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

None

Barclays is a global bank with customers in 40 countries. Read More

Barclays Personal Loan Details

Terms Fees and Penalties
  • Term lengths: 36 to 60 months
  • APR range: 5.74% to 18.99%
  • Loan amounts: $5,000 to $35,000
  • Time to funding: A few business days
  • Credit check: Soft Pull
  • Origination fee: None
  • Prepayment fee: None
  • Late payment fee: None

Barclays product details

One of the most unique features of the Barclays personal loan is the complete lack of late fees — your balance will still accrue interest if your payment is late, which could increase your total loan payment, but you won’t incur a penalty.

When you check your personal loan rate, Barclays performs a soft pull that won’t affect your credit score. This allows you to comparison shop, without lowering your score. Do note, the bank will check your credit score to determine your creditworthiness after you submit an application.

Eligibility requirements

  • Minimum credit score: 700
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

Specific eligibility requirements for personal loans are not available on the Barclays website.

Applying for a personal loan from Barclays

The Barclays personal loan application is entirely online. To begin the process, click “Check your rate,” follow the prompts and choose the options that best meet your needs. You do not need an invitation code to apply, but if you have one, click “Use my invitation code” at the top of the page to receive your customized rate.

During the application process, you’ll be asked to provide your name, address, contact information, Social Security number, employment details, and personal financial information. Barclays will send you a message through its secure application center to request written documents needed to evaluate your application. These items can be uploaded through the bank’s secure application center.

Before you sign your loan application, you’re free to cancel it at any time. If you choose to accept your loan, Barclays will issue the money within a few business days. You’re able to have the funds deposited in a U.S. checking or savings account or direct the bank to pay off up to five of your credit card balances without touching the funds yourself.

Pros and Cons of a Barclays Personal Loan

Pros Cons
  • No fees: Barclays personal loans come with zero fees. This includes origination fees, prepayment penalties and late fees, which can result in significant savings.
  • Soft pulls: Checking your rate will not impact your credit score, because Barclays uses a soft credit inquiry that is not reported to creditors or credit reporting agencies.
  • Flexible terms: Choose a repayment period that fits your budget, as Barclays offers terms of 36, 48 and 60 months.
  • Competitive baseline APR: Barclays offers a baseline APR of 5.74%, which is lower than most lenders. However, rates are based on creditworthiness and length of term requested, so depending on your unique situation, you could end up with the maximum 18.99% APR.
  • Loan amounts: Barclays only offers loans between $5,000 to $35,000. This can be problematic if you’re looking for a smaller amount.
  • Time to funding: After you’re approved for a Barclays loan, it takes at least few business days to get you the money. The bank notes that delays are possible based on the policies and procedures of your financial institution.

Who’s the best fit for a Barclays personal loan?

A Barclays personal loan might be a great fit if you’re opposed to paying fees of any kind. The lack of origination fees, prepayment penalties and even late fees can result in serious savings.

Considering loan amounts range from $5,000 to $35,000, this product will only work if you need to borrow a substantial amount of cash. Due to the seriously competitive baseline 5.74% APR, it’s also a better choice if you have a low credit score. Rates are based on creditworthiness and length of term requested, so if your credit isn’t the best, you could end up with the highest rate, which tops out at 18.99% APR.

Since Barclays’s personal loans offer a fully digital experience, this is also a better choice for the tech savvy crowd. While a customer service team is always a phone call away, you might become frustrated with the self-service features and the lack of face-to-face interaction if you prefer more a more personalized banking experience.

Before deciding on a personal loan, it’s smart to read Barclays reviews and comparison shop to see what other lenders have to offer. LendingTree has a personal loan tool that can be used to quickly and efficiently explore your options. Barclays loans have no origination fees, and below are a few alternatives that also offer this benefit.

Alternative personal loan options

LightStream

LightStream

APR

3.99%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

LightStream is the online lending division of SunTrust Bank.Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

LightStream, a division of SunTrust Bank, offers personal loans from $5,000 to $100,000. Rates are extremely competitive — the bank is willing to beat any qualifying lower rate offered by another lender by 0.10% — and vary by loan purpose. There are no fees attached to the loan, including prepayment penalties. This can be a good choice if you’re looking for a fee-free loan, but need a higher amount than Barclays offers.

SoFi

SoFi

APR

5.99%
To
16.99%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SoFi offers some of the best rates and terms on the market. Read More


Fixed rates from 5.990% APR to 16.990% APR (with AutoPay). Variable rates from 5.74% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of March 18, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.72% APR assumes current 1-month LIBOR rate of 2.49% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi grants personal loans from $5,000 to $50,000. There are zero fees attached to the loans and SoFi’s unemployment protection benefit allows you to temporarily pause payments, while helping you find work if you lose your job. If you’re looking to borrow more than the maximum Barclays personal loan limit or want to spread your payments out across a longer term, a SoFi personal loan can be solid option.

Earnest

Earnest

APR

6.99%
To
18.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.Read More

Earnest offers personal loans that range from $5,000 to $75,000 and you’re able to choose your desired monthly payment. You might also score a more competitive rate with Earnest, as the lender analyzes your entire financial profile to calculate your APR, instead of relying solely on your credit score. Earnest could be a good choice if you need more money than the maximum Barclays limit or you feel like your credit score doesn’t properly represent your financial standing.

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Source: https://www.magnifymoney.com/blog/reviews/barclays-personal-loan-review/

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