Barclays Car Loans Review 2022 – Forbes Advisor UK
If you’re looking for a Barclays car loan between £7,500 and £15,000, you could be queuing to take advantage of one of the bank’s lowest interest rates. But you’ll likely still find cheaper personal loan deals elsewhere.
Representative example
The representative APR example gives you an estimate of how much it might cost if you borrow a certain amount of money. This helps you compare products and provides an indication of how much it might cost to wear a scale. Your personal offer may deviate from the representative annual interest example.
You could borrow £10,000 over 60 months with monthly repayments of £200.99. The total amount to be refunded is £12,059.40. Representative 7.90% APR, Annual Interest Rate (Fixed) 7.90% pa Credit available subject to status.
advantages
- Gentle credit check that doesn’t affect your credit report
- Money can be withdrawn within minutes
- Borrowing up to £50,000 possible
- Can apply for a second loan or top up existing loans
Disadvantages
- Must be an existing Barclays or Barclaycard customer
- Lower APRs offered by other personal loan providers
- Personalized APR up to 26.90% depending on circumstances
Lowest representative annual percentage rate of charge
7.90% (for loans between £7,500 and £15,000)
Available Loans
£1,000 to £50,000 (APR varies by loan size)
Loan Conditions
2 to 5 years
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main features
- For existing Barclays or Barclaycard customers only
- Representative APR of 7.90% for loans between £7,500 and £15,000
- Fixed rate means fixed monthly loan repayments
- Maturities between two and five years
- Can apply for a second or top-up loan
- Charge 30 days interest on full early repayment
Will I be eligible?
To qualify for a Barclays car loan, you must already have a Barclays checking account or be a Barclaycard customer. You must also be at least 18 years old and a UK resident.
Barclays’ credit approval process – which includes a “personalized quote” upon request – takes into account factors such as your income, creditworthiness and length of service with Barclays.
Whether you apply for a car loan directly from Barclays or through a comparison site, an eligibility checker will show your chances of acceptance (and at what APR) without hurting your credit score.
What else should I know?
Barclays car loans are essentially unsecured personal loans that you can use as you wish – you don’t have to use them to buy a car. Personal loans are unsecured, meaning they are not tied to assets that can be sold if you default on your loan repayments.
The 7.90% APR advertised for 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 interest rate you are being offered could be much higher – up to 26.90% in some cases depending on your creditworthiness and circumstances.
If you are looking for a smaller car loan from Barclays between £5,000 and £7,500, the lender is offering a representative APR of 10.90%. For smaller loans between £1,000 and £5,000 this rises to 20.90%.
The lowest APR Barclays could offer you is 3.40%. But even this rate is higher than some other medium-sized loans from competing lenders. So when looking for a personal loan, always compare the broader market rather than going straight to your bank provider.
If you repay your Barclays car loan in full before the agreed term, you will be charged a fee equal to 30 days interest on the repayment amount plus any other interest due.
How does the application process work?
The application process for a Barclays car loan takes less than 10 minutes for most people who apply online or through the app, according to the bank. And – once approved – the money can be credited to your account within minutes.
Is the Barclays car loan right for me?
You must be an existing Barclays customer to apply. But even if this is the case, lower interest rates on car loans may still be available from other lenders. Although there are no guarantees, being accepted for a Barclays loan could benefit you as a Barclays customer.
Before you take out a personal loan, make sure you have the funds to keep up with repayments for the duration of the loan term. Late or missed repayments can damage your credit score and potentially make it more difficult to obtain credit in the future.
What are my alternatives?
If you’re planning to borrow a small amount, it may be worth considering a credit card with 0% interest on purchases for an initial promotional period. This way you don’t have to pay any interest as long as you repay your balance in full during the interest-free period.