Tesco Small Home Improvement Loan
Good:
Money paid out very quickly - very professional and easy service
Bad:
Well known to offer you an initial interest rate and then change it on the loan agreement
Verdict:
Loan for homeowners with a really good credit history - Tesco comes recommended although this smaller loan could have some higher interest rates, see what your primary bank can offer you first
Offering loans from £3,000 to £7,499 over 1-10 year period, Tesco have specifically aimed this loan at customers who are looking to improve their homes. The interest rate for Tesco is really competitive on their larger loans, however, bear in mind they do not accept customers with any type of bad credit history. The 2 month payment holiday Tesco offer at the start of the loan can be great for people who are looking to improve their property as it gives you a financial break whilst spending out on your improvements (interest still applies).
Tesco offer two methods of applying for their loans, the most efficient way is using their online application service. However if you would rather talk to someone about it you can call their UK based call centres. Once you have applied and completed the online application form, they will give you an instant provisional decision. If you are provisionally accepted, they will further assess your application and post your loan agreement out. You may have to send extra documentation to back your application up such as bank statements or wage slips. Return the documents back to Tesco and it can take up to 3 working days to make a final decision on your loan. They will then send you a letter to confirm everything and the funds will be in your account in 3 working days.
Bear in mind Tesco do not accept any customers with Defaults or CCJs. There does seem to be an issue regarding customer service with documents and agreements seemingly going missing. Internal communication seems well-known to be poor, judging from customer reviews on the internet. However, the people that have received their loans have on the whole said they are very happy with the service. Make sure you make your repayments on time as the late payment charges are a bit more expensive than other lenders. Also, double check the interest rate they may have written on the loan agreement - it may be different to what you were originally quoted.
Loan Calculator (Representative 6.4%APR)
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To be fair to Tesco, they were very quick on the processing front. However, the lure of a low interest rate was just and only that - a lure. I was offered the amount I requested, but without any warning, their operative informed me of the repayment terms. My credit rating isn't bad, so I was a little shocked to be offered 14.1 % rather than the "typical" 7.9%. When I told them that I wasn't interested, they still persisted in trying to get me to accept it, even sending agreement documents, rather than the retraction that I requested. They responded to my complaint, but they operate a cloak and dagger system of rating, so I am still none the wiser. Left a very bad taste in my mouth, and doubt that I will ever deal with the Tesco brand again.
We were expecting our first baby so we wanted make some changes around the house! I applied for a £3,000 loan from Tesco and I was very happy with the process! We were offered an agreement in principle online, we had to submit 6 months worth of recent bank statements by post before they would confirm and release the funds. I thought this was very reasonable and the money was sent instantly to our bank account.
Due to some unforeseen and urgent building work needed to be done to our house, we had to raise some cash quickly so we turned to look for a loan. We applied to Tesco and they were absolutely one of the best. I would not hesitate to use them again if we needed to and I would recommend to anyone else.
After filling in the maze of questions in on the internet, a week later I was accepted in principle. I received a credit agreement, a bank mandate, even the date of the first repayments which I signed and sent back. Another phone call told me I would have a final decision soon. I didn't hear back so two days later I called and they told me I had been rejected! I couldn't believe it, what a waste of my time.
Loans up to £7,499 - 10 years
Non-express - up to 10 working days
- You need: bank details, details of your regular monthly income after tax, your credit and store card limits, current balances and time held, details of your other monthly outgoing expenses, 3 years address details and your current employers details
- You must be a homeowner
- You must have been living in the UK for one year or longer and have a permanent address
- You must have a bank/building society account with Direct Debit facilities
- You must be in full-time, part-time or self-employment earning over £10,000 per year
- You must be between the ages of 18 and 74
- You must have a good credit history
- Default notice - £30.00
- Courier fee to receive your documents quicker - £50.00
- Payment received late - £30.00
- Two month's additional interest
