Would A TSB Loan Be Right For Me?
Are you thinking of getting a loan from a bank? Loans at high street banks often have the lowest interest rate. However, the majority of banks require their applicants to have an account with them before you can borrow money. Well, don’t lose hope because there is at least one bank in the UK who caters to customers even if they don’t have a current account with them. It’s TSB Bank. TSB is one of the very few high street lenders in the UK that can transfer the loan funds to the borrower’s bank account, even if their current account is not with TSB, by the following banking day. But before we go any further, it is imperative that you know that banks require all their applicants to have a good credit rating. So if you have a poor credit score, don’t waste your time processing a loan with them. It might even cause your credit score to get lower. Are you interest now? Let’s take a closer look at TSB Bank.
TSB Bank plc, a Sabadell Group subsidiary, is a commercial and retail bank in Britain. It has operations all over England, Wales, and Scotland through its large network of 550 branches. This reputable high street bank with almost 5 million customers and more than over £20 billion of customer deposits and loans launched its current brand in 2013. TSB Bank emerged from Lloyds TSB Scotland plc’s existing businesses, wherein a significant number of Lloyds TSB branches in Wales and England and all branches of Gloucester and Cheltenham were renamed TSB Bank plc.
TSB offers consumers personal loans for amounts ranging from £1,000 and £25,000. The loan can be paid back within a period of one to seven years.
If you want to apply for a TSB loan online, you must be an existing customer and your current account must be active for the last three months. However, if you are not a TSB customer, it is still possible to obtain a loan from TSB. You simply need to call them or visit one of their branches. Borrowers will find different options when seeking a loan from TSB. The loan application may be completed online even if you are not a TSB customer. You can opt to call their hotline or drop by any of their branches to speak with one of the loan advisors.
If you want to get a clear idea of their loan packages, you can request for a personalised quote which will not leave any mark on your credit record. One of the advantages of being a TSB customer is that you can get the funds immediately into your account as soon as your loan is approved. Non-customers may have to wait for at least two working days before receiving the loan proceeds.
To qualify for a TSB loan, you must be of legal age, be a registered voter, reside in the UK and have a passing credit score. You should be employed and have a minimum annual income of £10,000. Aside from having good credit, the applicant must not have been bankrupt or had a CCJ within the last five years. With TSB, you can enjoy their repayment holidays every year but this is still subject to approval. Remember that if you avail of the repayment holiday, it can cost you more interest in the long run. You are also welcome to pay off the outstanding balance earlier by paying extra anytime you want to. Take note that early settlement charges may apply.
It is expected that high street banks, including TSB, have the tendency to get a rating that’s low or half the perfect score. Some customers are happy, while some are dissatisfied. But, TSB scored 2 out of 5 in most customer reviews. This might not sound and look great, but it is one of the higher ratings of the high street bank lenders. Yup, that’s right. This is because high street banks have more product offerings and services. So, each time you read bad reviews of high street banks, you need to consider that these reviews span their entire offering, not just their loans. After going over the reviews, there are mixed opinions on TSB Bank.
Compared to some banks that require you to have an existing account with them, TSB does not require a loan applicant to have an account with them to obtain their loan products. You simply need to call TSB or visit one of their branches to process the loan. For TSB customers with an active account for the last three months, the loan application is hassle-free since all you need to do is submit your loan application online. Another benefit of TSB online banking is that you can monitor your loan over the Internet. Successful TSB loan applicants will benefit immensely from their two repayment holidays every year for the duration of the loan. Remember though that your loan will continue to accrue interest thus you end up paying much more.
You also have the option to pay off your loan early but expect that there are early repayment charges. TSB offers loan products similar to other high street bank but with a more reasonable APR. Loan applicants must be registered voters. If you are a resident of the Channel Islands or the Isle of Man, you are not going to be eligible as well. If you have an account with TSB, the minimum loan requirements are significantly more lenient.
Note that the advertised 2.9% APR is available only to loan amounts of £7,500 to £25,000. Amounts exceeding the said value will have a higher APR, as much as 30%. The APR applied to any loan amount will also depend on the personal and financial circumstances of the borrower.
Compared to other high street banks, TSB’s loan products have attractive and affordable rates given that your credit score is good and you pass the minimum requirements. With features like the repayment breaks and convenient loan management through online banking, it is worth getting a loan from them. If your credit is not that great, it is best to look around in order to get matched with the most suitable lender for your specific circumstances.