Tesco Small Loans For Debt Consolidation
Good:
Helpful in clearing your debts and reducing your repayments significantly
Bad:
If you are late or miss any payments, you may face some big charges
Verdict:
Bring together all of your debts with this loan - make sure you calculate all of your debts thoroughly as this small loan can have high interest rates, be absolutely certain consolidation is the right thing before applying
Offering loans from £3,000 to £7,499 to help customers who are struggling with multiple creditors or high monthly repayments. The idea behind the consolidation loan is to try and help customers get on top of their finances, with this in mind Tesco offer a 2 month payment break at the start of the loan which can really help.
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.
This can be a good option if you have debts with high interest accounts such as catalogues, credit cards or loans. Many Tesco customers manage to cut their monthly outgoings and lower the overall interest they are paying. However 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 to be on the shaky side 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.
Loan Calculator (Representative 8.7%APR)
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applied online and heard nothing so I called Tescos and was told I had been declined!!! Even though I have a credit score of 999 I was told it was down to internal scoring!!! So not every little helps in this case!!!
12 Weeks after applying for a loan, with Tesco Ioan still waiting for all my docs to come back to me. I have phoned customer care for advise on this matter and they informed me they will send out my docs in the morning post. 8 weeks later phone call after phone call, I still have not receive my docs which include my p60 I need for tax. I was advised the loan would be with me 2 weeks after the date I applied 12 weeks later nothing I went to Halifax Had loan with in 48 hours now cancelled Tesco loan but still no docs. Would not recommend Tesco for a loan unless you have a few months to wait.
18 months ago my husband and I decided to try and clear our credit card debts. I decided to contact Tesco via phone. Our call was answered quickly and after we finished the application we only needed to send copies of our pay slips and the latest Visa card bills. I hadn't heard anything at all from Tesco but when I got a mini-statement out of my account all the money I had requested was in there! I called Tesco straight away to confirm and they had deposited it. All my worries had been answered.
I needed some money and I figured the best thing to do was consolidate my debts into one easy payment. The Tesco website is so easy to use and the application form is reasonably short. They let you know in principle and a day or so after if they need any other documents. The interest rates are very good, there are no set up fees, you can transfer balances from other cards and loans. It's safe to say it was a successful experience!
My credit rating is good and I was looking for a consolidation loan that would save me £400 a month for old high rate loan. I was turned down flat! I waited for 4 days to get a letter through saying it was due to credit info. I have checked and I know I have a high enough credit score and rating. I wish I would have followed other's advice.
After having previous loans with Tesco, they have been so great I decided to consolidate my debts with them (after being messed around with HSBC). I applied on the phone with Tesco and they asked for 3 months payslips and a letter from my employer. Delay after delay they now say they have my employer's letter but didn't have his reference number. I'm not sure why they wanted a letter from my employer because they have payslips with my National Insurance number but I've eventually given up.
Loans up to £7,499 - 10 years
Non-express - up to 10 working days
- You must have been living in the UK for one year or longer and have a permanent address
- 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 have a bank/building society account with Direct Debit facilities
- You must be between the ages of 22 and 74
- You must be in full-time, part-time or self-employment earning over £10,000 per year
- 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
