What rates can I get?

The rate or APR you’re offered by lenders will be based on your credit history and personal circumstances.

Here at Freedom, we show you real rates as much as possible when you check your eligibility with us. This means we show you the actual rate you’ll get if you decide to apply. To find out what rates are available to you, simply check your eligibility with us and we’ll give you a quick online decision.

Will checking my options affect my credit score?

No, using our eligibility check won’t affect your credit score in any way. We only carry out a soft search when we find you your finance options, meaning that the search won’t be recorded on your credit file. If you do decide to accept an offer, your chosen lender may then carry out a hard search to run their final checks.

How many lenders do you have?

As a credit broker, currently we have over 100+ UK lenders, credit card providers, mortgages and specialist car finance brokers that we can check your eligibility against.

Are you a credit broker or a lender?

We’re a credit broker. This means that when you check your loan, credit card or car finance options with us, we use smart decisioning to check your details against our one of many lenders’ eligibility criteria and find you options that you’re eligible for. If you have more than one offer, you can then go through your options to find the one that’s right for you.

What’s the difference between a personal car loan and hire purchase?

There are a few key differences between personal car loans and hire purchase (HP) agreements:

  • You can borrow more with HP – up to £200,000
  • HP is secured against your car whereas a personal loan is not
  • With a personal loan, you’ll own your car from the point of purchase, but with HP you’ll own your car once the last payment has been made
  • You might need a deposit with for HP, you won’t with a personal loan
  • You have more flexibility on where you can buy your car from with a personal loan
  • There may be mileage restrictions with HP while you pay off your finance

How much can I borrow?

The amount you’re eligible to borrow will depend on your credit history and personal circumstances. Typically personal loans range from £1,000 to £35,000 over terms of 1 to 7 years and homeowner loans range from £10,000 up to £2,000,000 over terms of 1 to 30 years.

For credit cards, all cards come with a minimum and maximum credit limit. The credit limit you’re offered will depend on your personal circumstances. If you’re not offered the maximum credit limit straight away, your credit card provider could increase your credit limit in the future.

If you’re searching for car finance, you could borrow up to £200,000 with a hire purchase agreement over terms of 1 to 6 years.

What is hire purchase?

With a hire purchase agreement (HP), the finance is secured against the value of the car. This means you won’t officially own the car until your last payment has been made. You’ll need to buy your car from a dealership that’s been approved by your chosen lender, then you’ll pay for your car in monthly instalments plus interest over the agreement term. Some lenders will need you to pay an initial deposit at the start of your agreement.

What is a personal car loan?

A personal car loan is an unsecured loan which you can use to purchase a new or used car. With a personal loan, you borrow a fixed amount off a lender, then pay it back in monthly instalments plus interest over the loan term.

Which types of car finance can I check my eligibility for?

Here at Freedom, we can check your eligibility for both personal car loans and hire purchase agreements. If you’re eligible for both, you’ll see both options alongside each other in your search results. Checking your eligibility with us won’t harm your credit score.

What does APR % mean?

This stands for Annual Percentage Rate – which is the cost of borrowing money over the course of a year. Having it as a percentage figure allows people to compare the cost they’ll face when taking out a loan or credit card. It is important to note that an APR is different from an APRC.

Lenders also use something called ‘Representative APR’. This is the APR that 51% or more of successful applicants will get. But that rate may not be available to the other 49% of applicants, who are likely to be offered a higher rate.

This is why it’s so important to pay attention to the APR% when checking your eligibility, as it gives you a good idea of just how much you will be paying each year for borrowing money from lenders. For more advice, take a look at our article on explaining Annual Percentage Rates. You might also like to know how your APR is decided or what is Representative APR %?

FAQs

We know that finance can be pretty confusing. Which is why we want to give you the clearest, jargon-free guidance to help you find the best loan for you – without the Baffles.

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