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RateSetter Loan

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Representative APR 8.2%

APR ranges from 5.9% - 8.2%

Loan Amount £1,000 - £25,000

Repayment Method Direct Debit

Payout Method Transferred into your bank account

Speed One working day

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Good Stuff

You are borrowing from people, not banks, so you can get lower rates and better terms

Bad Stuff

It may take longer to get your loan as you have to wait until somebody offers you the money

Verdict

Relatively new peer to peer lender that is already becoming highly recommended, really low interest rates even compared to your primary bank, definitely worth trying them as the application form is really simple

Summary[edit]

Ratesetter.com is a peer to peer lending website. What this basically means is that you, (the borrower) borrow directly from another person (the lender), cutting out the bank. This particular type of loan from RateSetter is more like a traditional loan. You set up a contract between yourself and the lender and you pay the loan back over 3 years in 36 equal monthly payments.

You can apply online with Ratesetter.com. Their application form is only a few pages long and is really simple. Step one is getting a quote - RateSetter will tell you how much you can borrow and the likely interest rate. Step Two is confirming how much you can borrow - RateSetter checks your credit history by carrying out a "soft" search which has no impact on your credit rating. Step Three is RateSetter matching you with a lender. Step Four is them sending you the money. The money will be sent the day after you are matched with a lender.

When you have finished your intial application, they will send you an email with your account number which you need to keep hold of. Their quote is free, with no-obligation and does not involve any credit checks that will have an impact on your credit file. You are told via email within one working day if you have been accepted, then you can log-in and see which lenders are available to you. RateSetter will give you a Credit Rate based on your credit profile. The better your credit profile, the lower the rate - the worse your credit profile, the higher the rate.

One of the most interesting things is that Ratesetter only run what is called a soft credit search. What this means is they can view your credit history but it wont leave a mark on there that other lenders can see. Every borrower is given an individual limit that they can borrow depending on their credit history and financial position. You will be given a credit rate which will be based on your credit score. The higher your credit score, the lower the credit rate. This credit rate is added to the rate you agree with the lender.

[edit]Lending Criteria

Criteria:

  • Employment:
    Full Time Work, Part Time Work, Temporary/Contract, Self Employed
  • Residential Status:
    Homeowner, Tenant, Tenant - Private, Tenant - Housing Assoc., Tenant - Council, Living with Family, Military Accommodation, Work Accommodation
  • Defaults:
    No more than One
  • Time In UK:
    At Least 3 Years
  • CCJs:
    No more than One
  • Loan Purpose:
    Debt Consolidation, Home Improvements, House Purchase, Car Purchase, Car (Other), Holiday, Wedding, Boat, Business, Student Loan, Christmas, Other, Home Furnishings

 

Checklist:

  • You must have a regular income
  • You need to have been a UK resident for 3 years or longer
  • You cannot be on Debt Management, an IVA or be bankrupt
  • You must be at least 24 years of age
  • You must have a valid UK bank account
  • Must have good credit history

[edit]Charges

Late Payment FeesLate Payment Fee - £10.00

Default FeesIf you do not make your payment after 28 days, the loan will go into default and a Collection Agency will become involved

Early Settlement FeesNone

RateSetter Loan in the Community

This loan has been recommended once in the Loanpages community to the following people:

Looking For... Loan Details Added

perera
Need help getting a loan for 1500
I am a graduate working full time. I have been in the UK for 2 years and 5 months. Have not previously taken any loans. Got a UK current account and a credit card. Fairly good cred...
£1,500 for Other Feb 22, 2011

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