Barclays car loan review 2022 – Forbes Advisor UK
If you’re looking for a car loan from Barclays, between £7,500 and £15,000, you could be in line for one of the bank’s lowest interest rates. But you’re still likely to find cheaper personal loan deals elsewhere.
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide to the cost of carrying a sale. Your personal offer may vary from the representative APR example.
You can borrow £10,000 over 60 months with monthly repayments of £200.99. The total reimbursable amount will be £12,059.40. Representing 7.90% APR, annual interest rate (fixed) 7.90% pa Credit available subject to status.
- Flexible credit check that does not impact your credit report
- Funds can be paid out in minutes
- Possibility of borrowing up to £50,000
- Can apply for a second loan or supplement an existing loan
- Must be an existing Barclays or Barclaycard customer
- Lower APRs offered by other personal loan providers
- Personalized APRs up to 26.90% depending on the circumstances
- Existing Barclays or Barclaycard customers only
- Representative APR of 7.90% on loans between £7,500 and £15,000
- Fixed interest rate, i.e. set monthly loan repayments
- Repayment terms between two and five years
- Can apply for a second loan or a “complementary” loan
- 30-day interest charge for full prepayment
Will I be eligible?
To be eligible for a car loan at Barclays, you must already have a Barclays current account or be a Barclaycard customer. You will also need to be at least 18 years old and resident in the UK.
As part of Barclays’ loan approval process – which includes a ‘personal quote’ on request – factors such as your income, credit score and length of customer relationship with Barclays will be taken into account.
Whether you apply for a car loan directly from Barclays or through a comparison site, an eligibility checker will reveal your chances of being accepted (and at what APR) without affecting your credit score.
What more do I need to know?
Barclays car loans are essentially unsecured personal loans that you can use however you want – you don’t have to buy a car with it. Personal loans are unsecured, which means they are not tied to any assets that can be sold if you do not continue to repay your loans.
The 7.90% APR title advertised on Barclays car loans between £7,500 and £15,000 is representative. This means that – under rules set by the Financial Conduct Authority (FCA) – this rate is only offered to 51% of successful loan applicants. The rate you are offered could be much higher – up to 26.90% in some cases depending on your credit score and the circumstances.
If you are looking for a smaller car loan from Barclays between £5,000 and £7,500, the lender offers a representative APR of 10.90%. This increases to 20.90% on small loans still between £1,000 and £5,000.
The lowest APR Barclays could offer you is 3.40%. But even this rate is higher than some other mid-sized loans from competing loan providers. So always compare the wider market when looking for a personal loan, rather than going directly to your bank provider.
If you repay your Barclays car loan in full before the agreed term, you will be charged a fee equivalent to 30 days interest on the amount you repay, plus any other interest due.
How does the application process work?
The Barclays car loan application process takes less than 10 minutes for most people applying online or through the app, according to the bank. And – once approved – funds can arrive in your account within minutes.
Is the Barclays car loan right for me?
You will need to be an existing Barclays customer to apply. But even if that’s the case, lower auto loan interest rates may well be available from other lenders. However, although there are no guarantees, being a Barclays customer could go a long way in getting you accepted for a Barclays loan.
Before taking out a personal loan, make sure you have the means to meet repayments throughout the term of the loan. Late or missed repayments can hurt your credit score, which could make it harder to accept credit in the future.
What are my alternatives?
If you plan to borrow a small amount, it may be worth considering a credit card that offers 0% interest on purchases during an initial promotional period. This way, you won’t have to pay interest, provided you pay off your balance in full during the interest-free period.