Finance Choices
British Gas Loans
A British Gas Loan makes rolling outstanding credit into just one manageable monthly payment quick and easy.
The APR of 6.2% is competitive with other personal loan providers on the market and you can borrow between £1,000 and £25,000 with a 3 month repayment holiday period included.
The British Gas Personal Loan also comes with fixed monthly repayments and a decision in minutes. When you're accepted onto the program the cheque is delivered to you in 24 hours.
How does a British Gas Loan compare to other loans?
If you're a British Gas customer, you'll know that the company is pretty expensive for gas and electricity prices. Surprisingly, though, the British Gas loan is really competitive in terms of the interest rate. The typical APR for a British Gas loan of over £5,000 is among the lowest on the market.
With the British Gas loan you can borrow up to £25,000 for up to seven years, and you'll get a three month payment holiday at the start of your loan term - you won't need to make any payments at all for this time. And, once you do start paying, you can be secure in the knowledge that your payments per month won't change; the interest rate is fixed for the lifetime of your British Gas loan.
Summary
The British Gas loan can be a good choice but there are a few hidden costs and conditions. For instance, if you want to borrow a smaller amount (under £5,000) your interest rate with the British Gas loan will shoot up. You'd be better off with a different lender if this is the case.
The British Gas loan is heavily advertised under the slogan 'click today, cheque tomorrow' - if your application for a British Gas loan is accepted you can ask for the cheque to be forwarded to you on the next working day. The unfortunate thing is that British Gas will charge you £45 for this service.
The sneakiest thing that British Gas does to its customers is to charge a redemption penalty. This is an industry-wide problem: many lenders make this charge but there are plenty out there that don't. A redemption penalty can be the equivalent of two months' interest, payable if you can afford to pay back the entire loan early. It might not sound like much money, but it's a charge you shouldn't have to pay.
The more you review the British Gas loan the more you begin to find yourself getting very excited about the product and starting to feel the urge to apply now.
The APR of 6.2% is competitive with other personal loan providers on the market and you can borrow between £1,000 and £25,000 with a 3 month repayment holiday period included.
The British Gas Personal Loan also comes with fixed monthly repayments and a decision in minutes. When you're accepted onto the program the cheque is delivered to you in 24 hours.
How does a British Gas Loan compare to other loans?
If you're a British Gas customer, you'll know that the company is pretty expensive for gas and electricity prices. Surprisingly, though, the British Gas loan is really competitive in terms of the interest rate. The typical APR for a British Gas loan of over £5,000 is among the lowest on the market.
With the British Gas loan you can borrow up to £25,000 for up to seven years, and you'll get a three month payment holiday at the start of your loan term - you won't need to make any payments at all for this time. And, once you do start paying, you can be secure in the knowledge that your payments per month won't change; the interest rate is fixed for the lifetime of your British Gas loan.
Summary
The British Gas loan can be a good choice but there are a few hidden costs and conditions. For instance, if you want to borrow a smaller amount (under £5,000) your interest rate with the British Gas loan will shoot up. You'd be better off with a different lender if this is the case.
The British Gas loan is heavily advertised under the slogan 'click today, cheque tomorrow' - if your application for a British Gas loan is accepted you can ask for the cheque to be forwarded to you on the next working day. The unfortunate thing is that British Gas will charge you £45 for this service.
The sneakiest thing that British Gas does to its customers is to charge a redemption penalty. This is an industry-wide problem: many lenders make this charge but there are plenty out there that don't. A redemption penalty can be the equivalent of two months' interest, payable if you can afford to pay back the entire loan early. It might not sound like much money, but it's a charge you shouldn't have to pay.
The more you review the British Gas loan the more you begin to find yourself getting very excited about the product and starting to feel the urge to apply now.
posted by Bruce Wayne at 4:01 PM
British Gas Loans
2 Comments:
You would not normally associate British Gas with personal finance products but they have launched a highly competitive loan that is on par with the best personal loan offers available in the UK.
They typical apr for the British Gas personal loan is 6.4%, on par with the lowest loan apr offers available at Select Loans. This typical apr is available for loan amounts in excess of £5,000.
For loan amounts that are below £5,000 the typical apr is 10.9%, which seems to be high. There are many other loan providers that offer lower rates for these loan amounts, namely the Morgan Stanley Loan.
With a British Gas loan you can take advantage of the 3 months holiday break free of charge. This will entitle you for no repayments for the initial 3 months of your loan term.
If you decide to pay your loan early you will be charged an early redemption penalty, which amounts to 2 months interest payments. There is no arrangement fee for the British Gas Loan and the option to have option to receive your cheque within 24 hours for an additional cost of £45.
British Gas has its head office in Slough, and has been providing gas and electricity services to the UK for many years. The British Gas loan is provided by Personal Finance Limited.
The British Gas Personal Loan can be made available within 24 hours (in cheque format) once you?re approved. It has the bonus incentive of a hold on repayments for an initial period.
With the British Gas loan the APR is fixed for the entire loan term, meaning you won?t have to worry about your interest rate increasing, and can therefore budget more effectively. Joint applications are permitted.
Typical 6.4% APR based on a loan of £8,000 repayable by Direct Debit over 4 years, you'd make 48 monthly repayments of £186.95 commencing three months after your loan funds are issued and a total amount payable of £8973.60
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