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Your personal loan queries answered

A personal quote

What is the difference between a personal quote and applying for a loan?

Personal quote

A personal quote is where we show you what APR (Annual Percentage Rate) you could be offered and exactly how much your monthly payments would be.

Most loan providers give you quotes showing the representative APR (the rate most customers are offered but not necessarily the one you will get).

To give you your quote, we carry out a credit search. Don’t worry, other lenders are not able to see this on your credit file. This means that getting a quote from us won’t affect your ability to get credit in the future, and allows you to shop around before you make the decision to apply.

 

Applying for a loan

The full application is completed online and should take no more than 10 minutes.  We will ask for more information about you and update the credit search. This is then stored on your credit file and is visible to other lenders.

See How do I apply? for more information about what you will need.

What is a quotation search?

We call this a personal quote. This is where we use information from UK credit reference agencies to provide a personal quote, showing the APR (Annual Percentage Rate) that we could offer if you decide to apply.

The quotation search will not be visible on your credit file to other loan providers or financial organisations. This means it won't affect your ability to get credit in the future - giving you the flexibility to shop around before you apply for a loan.

We'll only do a full credit search if you choose to apply once you've received your quote. This means that your credit file would be updated and the search would then become visible to other lenders.

Credit reference agencies

What is a credit search?

When you apply for credit (either with Ikano Bank or with any other lenders), a credit search is carried out. Credit searches help lenders make informed, fair decisions about lending money, as they can see what financial products you have and how well you've managed them in the past.

The 'search' is where lenders request information about you from credit reference agencies. There are 3 main credit reference agencies in the UK (Experian, Call Credit and Equifax). These agencies hold lots of information about adults living in the UK - including whether you're on the electoral roll, financial products you have, how much you currently owe and how well you've managed any financial products you've had (for example – have you missed any payments, any county court judgments etc).

How do I improve my credit rating?

Here are a few things you can do to improve your credit rating:

Make sure you keep up to date with payments on any financial products you have. If you miss credit card, mortgage, loan, mobile phone or other utility bill payments it could be registered on your credit report and affect your chances of getting credit in the future.

We'd recommend setting up direct debits for all regular payments you need to make, so you know the payments will be taken each month - one less thing to remember or worry about.

Check that you're registered on the electoral roll at your current address - lenders use this to confirm your name and address.

Check the information on your credit report is accurate and up to date. If you believe something on your credit report is incorrect, contact the credit reference agency about this.

If your credit report states you have financial links to another person and this is no longer correct (for example an ex-partner or flat mate), you can request these are removed. The credit reference agency will be able to help with this.

Each time you apply for a credit product a 'footprint' is shown on your credit file for one year. If you apply for lots of credit products in a short space of time it can lead to you being rejected (as lenders may be concerned how much credit you are requesting). Try to spread out your credit applications and find out why you have been refused credit before you apply elsewhere.

What is a credit reference agency?

Credit reference agencies are independent organisations that hold information about adults living in the UK - including whether you're on the electoral roll, financial products you have, how much you currently owe and how well you've managed any financial products you've had (for example – have you missed any payments, any county court judgments etc). Lenders can request information about you to help them make a decision about lending you money (this is called a credit search). 

There are 3 main credit reference agencies in the UK (Experian, Callcredit & Equifax). For more information about Experian, Callcredit or Equifax:

www.callcredit.co.uk

www.experian.co.uk

www.equifax.co.uk

 

What is a statutory credit report?

Under the Consumer Credit Act 1984 you have the right to request a copy of your credit file from credit reference agencies for £2.

This report is a single snapshot of your credit status at the time the report is created. It includes information like:

  • your name, address, and any previous names and/or addresses
  • whether you are on the electoral roll at your current address
  • how much you currently owe lenders
  • details of any financial products in your name
  • any missed or late payments on existing or past credit card or loan accounts
  • any County Court Judgments (CCJs) made against you
  • Records of any credit searches in your name (in the last 2 years)

 

To request your credit report, contact the credit reference agencies directly:

Experian
Customer Support Centre
PO Box 8000
Nottingham
NG80 7WF
0344 481 0800 or 0800 013 88 88
www.experian.co.uk

CallCredit
Consumer Services Team
PO Box 491
Leeds
LS3 1WZ
0330 024 7574
www.callcreditstatreport.co.uk

Equifax
Equifax Credit File Advice Centre
PO Box 1140
Bradford
BD1 5US
0843 455 0136
www.equifax.co.uk

Applying for an Ikano personal loan

Can I apply if I live in the Isle of Man or Channel Islands?

No, we only offer loans to UK residents

Will I get the same rate of interest as my other Ikano loan?

We continually review our prices and change our interest rates where appropriate, so the rate you are offered for a new loan may be different to the rate you have on an existing loan account.

You can get a personal quote here.

What is net monthly income?

This is your monthly income after tax and any deductions (such as childcare vouchers and national insurance) are taken.

What is 'other gross household income'?

Gross household income is the other income (before tax and deductions) of your spouse or partner, any income from rental properties you may own or any other additional income into your household.

What are the overnight checks?

When an application is completed online we carry out a few checks to keep you safe from fraud and identity theft.

You will receive an email from us the following day once these checks have been completed.

What can I do if my application is declined?

If you have applied for a loan which we've been unable to approve, you can ask for the decision to be reviewed.

To do this, please write to us -

Ikano Bank AB (publ)
P O Box 10081
Nottingham
NG2 9LX

Please include a recent copy of your credit report and any other additional financial information that you feel we should be aware of.

We will respond to your appeal within 14 days. We may need to call you to discuss your appeal. We'll write to you to confirm the decision.

Can I apply again if I am declined the first time?

Yes, we're happy to consider another application after six months.

Can I change my mind?

Yes, you can cancel your credit agreement with us within 14 days. To do this, call us on 0371 781 3058*. If we have paid you the money for your loan, you will need to pay this back in full.

We are open Monday to Saturday 9.00am – 8.00pm and  Sunday 10.00am – 6.00pm

*Calls to this number cost the same as a call to a standard '01' or '02' landline number, even when calling from a mobile. Calls to this number are also included in any bundled minutes or free talk time that covers landline calls. Where calls are made outside of a bundle you will be charged at the national rate. Calls may be recorded for training purposes.

Who can apply?

You can apply for an Ikano personal loan if:

  • you're over 18 and a UK resident.
  • you have a minimum income of £10,000 a year.
  • you have a good credit history, no previous County Court Judgments, Debt Relief Orders, defaults, bankruptcies or Individual Voluntary Arrangements.
  • you have a UK bank account in your name which accepts Direct Debits.

You don't have to be an existing Ikano customer to apply for a loan

How do I apply?

You can only apply for a loan online. The application should take no longer than 10 minutes and there is no waiting for the post for paperwork to sign.

You will need the following bits of info to hand to get a quote or apply:

  • your address(es) including your postcode for the past 2 years
  • name and address of your current employer and how long you’ve worked there
  • your bank or building society account details. This needs to be a UK account in your name which accepts Direct Debits
  • an email address, so we can contact you about your loan
  • your regular monthly income after tax
  • your household’s other income. See What is other gross household income? for more information on this
  • your mortgage or rent details and any childcare payments or school fees

Once your application is complete, we'll do a few overnight checks. If everything is ok, we'll email you the next day to let you know if your application has been accepted. You'll then receive your money the next working day.

    Can I apply for a joint loan?

    Currently we only accept applications from one person, so joint applications (made by more than one person) are not possible.

    What can I use the loan for?

    Your Ikano Bank personal loan can be used for personal finance needs, for example a new car, holiday, home improvements, or debt consolidation.

    We do not offer loans for business purposes, for use as house purchase deposits, to purchase investments, timeshare property purchase or for any illegal purpose.

    How much can I borrow?

    We offer personal loans from £1,000 to £15,000.  

    The amount of money we could lend to you will depend on your credit history, other financial products you have and how much you can afford.

    Make sure you are comfortable with how much the payments would be before you apply for a loan. You can use our calculator to see how much monthly payments would be based on the rate most people are offered.

    How long can I borrow for?

    You can choose to pay back your loan from 12 months to 60 months (that's up to 5 years). You can use the loan calculator to change the number of months you have the loan for and how much you borrow. This will show you the amount you pay back each month and the total amount that you need to pay.

    When do I get the money?

    Once our overnight checks have been completed, if everything is ok we'll email you the next day to let you know if your application has been accepted. If your application has been accepted, you would then receive your money the next working day.

    I already have an Ikano loan, can I borrow more money?

    We would be happy to consider an application to borrow more money. Any additional money you would like to borrow from us would be set up as a new loan.

    The new quote you receive would be based on your current circumstances and the loan amount you wish to borrow. The APR (Annual Percentage Rate) you are offered may be different to the one that applies to your existing loan.

    You can get a personal quote here.

    Signing your agreement online

    How you sign your agreement online

    When you apply for an Ikano Bank loan the full application is completed online. You will see a copy of your loan agreement on screen - we recommend that you save or print a copy so you can refer to this again if you need to.

    Once you have read through the agreement, you 'sign online' by clicking a box to confirm you're happy to continue with the application and that you accept the terms and conditions of the loan.

    Please remember that when you accept the terms and conditions of the loan by 'clicking a box' you are making the same legal commitment as physically signing a document.

    Is it secure and legally binding?

    Signing your agreement electronically is secure and removes the risk of paper documents being lost in the post or mislaid.

    Please remember when you accept the terms and conditions of the loan online you are making the same legal commitment as physically signing a document.

    In the UK, the Electronic Communications Act 2000 states that electronic signatures are admissible as evidence in court if any question about the authenticity of data arises.

    Interest and APR

    What is a representative APR?

    The APR (Annual Percentage Rate) is the rate of interest payable for the money you would like to borrow. This is worked out on a yearly basis and allows you to compare our rates with other lenders. The representative APR is the APR that at least 51% of customers will pay, but is not necessarily the rate that you would be offered.

    You can get a personal quote here.

    Will the APR on my loan change?

    No, the APR (Annual Percentage Rate) is fixed for the term of the loan – that means the same % APR will be applied to your loan until you have finished all your monthly repayments, so you will know exactly how much you will be paying back each month.

    Will I be offered the representative APR?

    The rate of interest you are offered might be different to the representative APR (Annual Percentage Rate). We base the rate we offer you on your personal circumstances - for example your income and outgoings, how much you would like to borrow, your credit history and how well you have managed payments on financial products in the past.

    To find out the rate of interest (APR) we could offer you, you can get a personal quote. It only takes a few minutes and we can show exactly how much your repayments would be if your application is accepted.

    You'll need the following bits of info to hand: your address(es) with postcode for the past 2 years

    • name and address of your current employer and how long you’ve worked there
    • your bank or building society account details
    • an email address, so we can contact you about your loan
    • your regular monthly income after tax

    How is interest charged on my loan?

    Interest is charged on a daily basis. When we give you a personal quote, we will show you the total amount that you need to pay back, including interest.

    Your monthly payment will be the same every month (except for your final payment - see below) and will be made up of a % towards the amount you borrowed and a % towards the interest due on that amount over the term of the loan. 

    Your final payment - If there are no fees or late payment charges applied to your account, your final payment will usually be a few pence less than other payments. If there are charges or fees, this will mean more payments will be taken to cover these (see your loan agreement for more detail on this).

    Payments

    When will I receive my statement?

    You will receive a statement annually in the post. This statement will show how much you originally borrowed, your current balance, any interest charges and a summary of any payments made to us.

    Can I make additional loan payments?

    You can make additional payments at any time by calling us on 0371 781 3058*

    If you make additional payments, the amount of your monthly payment (Direct Debit) will not change. But you will pay off you loan quicker (i.e. we will take fewer monthly payments).

    We are open Monday to Saturday 9.00am – 8.00pm and  Sunday 10.00am – 6.00pm

    *Calls to this number cost the same as a call to a standard '01' or '02' landline number, even when calling from a mobile. Calls to this number are also included in any bundled minutes or free talk time that covers landline calls. Where calls are made outside of a bundle you will be charged at the national rate. Calls may be recorded for training purposes.

    Can I pay off my loan early?

    If you want to pay off your loan early, call us on 0371 781 3058* or write to us at:

    Ikano Bank AB (publ)
    P O Box 10081
    Nottingham
    NG2 9LX

    We'll let you know:

    • how much you need to pay (‘settlement balance’)
    • when you need to pay us by (the ‘settlement date’)
    • how much interest you will save by paying back early

    If you don't think you will be able to repay the full amount by the date given ('settlement date'), let us know. We can provide a new settlement balance.

    No additional charges for early repayment.

    There's no charge for repaying your loan early but your settlement figure will include up to 58 days interest, in line with the Consumer Credit (Early Settlement) Regulations 2004.

    Keep up to date with your payments.

    If you have requested an early settlement figure from us, you still need to make sure you keep up with your monthly payments until your loan is fully paid off. If you do overpay, we will send you a refund.

    You can pay by phone using a debit card, or transfer the money directly from your bank account.

    We are open Monday to Saturday 9.00am – 8.00pm and  Sunday 10.00am – 6.00pm

    *Calls to this number cost the same as a call to a standard '01' or '02' landline number, even when calling from a mobile. Calls to this number are also included in any bundled minutes or free talk time that covers landline calls. Where calls are made outside of a bundle you will be charged at the national rate. Calls may be recorded for training purposes.

    How can I pay my loan back?

    When you apply for a loan with us, we set up a Direct Debit to take your monthly payments. These payments show on your bank statement as Ikano Bank AB.

    If you would like to change the date your Direct Debit is taken from your account or change the account your Direct Debit is taken from, please contact us on 0371 781 3058*.

    If you would like to make an additional payment you can do this over the phone using a debit card, or we can give you the bank account details (if you would like to transfer directly from your bank account). Call us on 0371 781 3058*

    We are open Monday to Saturday 9.00am – 8.00pm and  Sunday 10.00am – 6.00pm

    *Calls to this number cost the same as a call to a standard '01' or '02' landline number, even when calling from a mobile. Calls to this number are also included in any bundled minutes or free talk time that covers landline calls. Where calls are made outside of a bundle you will be charged at the national rate. Calls may be recorded for training purposes.

    Can I change the date of my payment?

    The first payment is on a set date based upon your date of application. Once the first payment has been made, you can call us on 0371 781 3058* to change the date remaining payments will be taken from your account.

    We are open Monday to Saturday 9.00am – 8.00pm and  Sunday 10.00am – 6.00pm

    *Calls to this number cost the same as a call to a standard '01' or '02' landline number, even when calling from a mobile. Calls to this number are also included in any bundled minutes or free talk time that covers landline calls. Where calls are made outside of a bundle you will be charged at the national rate. Calls may be recorded for training purposes.

    What happens if I miss a payment?

    Each month your loan payments will be taken by Direct Debit. When you apply, you can choose the date this payment will be taken each month.

    If these repayments are not made on time you will be charged a fee.

    Late payment fee - £25
    Unpaid direct debit fee - £12
    Returned cheque or debit card payment - £12

    Missing payments or paying less than the minimum amount could make it more difficult to arrange credit in the future. If you miss a number of payments a 'default' would be recorded on your credit file at Credit Reference Agencies and you may also face legal proceedings. 

    If you have a loan with us and are concerned about making payments, please contact us as soon as possible. We have a team of trained advisors who can help and support you - call us on 0344 856 5743