In this day and age, most of us would receive messages inviting us to apply for personal loans from various banks, however, we must be cautious enough to know which bank we should apply to.
And when it comes to personal loans, the most prominent is Barclays Personal Loans since they offer simple personal loans at very competitive rates.
If ever you are in need of money to consolidate high-interest debt, make a major purchase, pay for your college tuition, or even to remodel your home, a personal loan from Barclays could be the answer that you have been looking for.
In this article, you will learn Barclays personal loans rates, who they are best for, and some reasons why you might want to consider a different lender.
Barclays Personal Loan Overview
Barclays is a British bank. It is not a new lender within the personal loans industry. In addition to the other financial products that it offers such as savings accounts, checking accounts, and credit cards, it has been known for offering personal loans in the United Kingdom for decades.
In the United States, it has an online-only operation that includes savings accounts and certificates of deposit. The bank ran an invitation-only pilot program for personal loans in the U.S. before releasing it to the public in October 2018.
Similar to a handful of other personal loan lenders, it allows borrowers to directly pay off their creditors with the loan proceeds. It sends money straight to your creditors thus, it increases your chances of paying off your debt successfully instead of using the money on other expenses.
In the US, the British banking giant is known for its dynamic rewards and travel credit cards. However, after releasing the personal loan product aimed at American consumer, Barclays personal loans now allow Americans to borrow money for almost any reason.
The loan offerings of Barclays work differently as compared to their credit cards. Instead of granting you a line of credit where you can borrow against, the personal loans of Barclays lets you apply to borrow a fixed amount of money.
Once you complete your application you will be able to secure a fixed interest rate, fixed repayment schedule, and a fixed monthly payment in the process. Better yet, the personal loans of Barclays come with affordable rates, flexibility, and absolutely zero fees.
The flexible loan amounts and repayment schedules also allow you to tailor Barclays personal loans to your needs and your ability to repay your loan. The fact that Barclays do not charge an origination fee – or any other fees for that matter, is one of the best reasons to choose Barclays.
It does not even charge a penalty fee if you make your payment after its due date, however, you must take note that interest will continue accruing on your balance. The interest rates of Barclays, which ranges from 5.74% to 18.99%, are also a good deal as compared to many of its competitors.
How Does It Work?
The personal loans of Barclays work entirely online so you would not need to visit one of their branches just to apply for a loan. It offers unsecured personal loans up to £35,000. Eligible borrowers can choose between loan terms of 3, 4, or 5 years. The APRs range from 5.74% to 18.99%.
Applying for a personal loan with Barclays is super easy. You can easily complete the entire process online. Interested applicants can even apply to “check your rate” with only a soft inquiry on their credit report before they can decide to continue with a full loan application.
After the approval of your personal loan from Barclays, you will be able to receive your funds as soon as a few business days. Barclays allows you to choose your own due date if you do not like the due date that was assigned to you when your loan was processed.
Barclays is considered as a direct lender so it funds all of its personal loans. You can easily apply or check your rate online a few minutes after a successful loan application. It usually takes a few business days for your funds to show up in your account once your loan has been approved.
After you receive your funds, you can use it for any legitimate purpose.
How To Apply For a Barclays Loan
You can easily apply on the website of Barclays by providing your name, address, Social Security number and other required information.
Steps On How To Apply:
- Go to the Barclays personal loan site (https://apply.mybarclaycardloan.com/).
- Scroll down and choose your loan amount, loan purpose, and hit Check your rate. If you have an invitation code, click “Have an invitation code?”
- Follow the directions to complete the application with your basic personal and financial information to get the rate based on a soft credit pull that does not affect your credit score.
- If you are satisfied with your rate, you can continue with the application, uploading any required documents.
- Once your loan is approved, you can review your loan amount and monthly repayments.
- Review your loan documents and all disclosures. Then sign and submit them.
How To Pay For a Barclays Loan
Barclays also conducts their personal loans business online. You must log in to your account if you would want to make a payment, check your account balance, or change any of the details on your account.
Once you receive your money, you will need to start making monthly repayments. You will be given two choices: Sign up for automatic repayments, or log in every month to pay online.
To save yourself time and the mental space to remember your repayments, you can consider signing up for autopay. You can always log in and pay more if you would want to pay off your loan early.
Barclays does not charge late payment fees, however, that does not mean that being late would not have additional costs. That’s because your interest continues to add up based on your outstanding loan principal. Your loan will cost you more in the end if you fail to pay on time.
Who Are Best Suited To Apply For Barclays Personal Loans?
- Consumers who have great credit and can qualify for the lowest interest rates.
- People who need to borrow £35,000 or less.
- Borrowers who want a personal loan without any fees.
What We Like About Barclays
- FAST AND EASY APPLICATION: The simple online application of Barclays is what makes it unique from other types of loans. Prequalifying only involves answering a few simple questions and it only takes a few minutes.
If you receive an invitation to apply, you are not even required to follow that step and you can already start with your application.
- NO FEES AND FLEXIBILITY: Just like most of the competitors of Barclays Personal Loan that serve the good-credit market, Barclays does not charge origination or penalty fees. Late payments will accrue interest, and all payments will be reported to the three major credit bureaus.
Barclays also allows the borrowers to choose their payment date on approval and change it once every 12 months if necessary.
- CUSTOMER SERVICE: Barclays has a phone number and mailing address that is intended for customer service. The firm says it has agents that can answer customer queries regarding the application process.
The bank does not have a mobile app, however, it says its application and servicing website is mobile-optimized.
- NO-LONGER INVITATION ONLY: Until recently, Barclays only offered its personal loans to individuals who have received an invitation letter in their mail with a code to apply. It now allows anyone to apply for their personal loan as long as they meet the bank’s credit criteria.
However, it still sends out some invitations to people who they consider to be good candidates for a loan.
Receiving a letter from Barclays makes the application process a lot easier since you do not have to worry about meeting the basic eligibility criteria and Barclays already has your basic personal information.
- COMPETITIVE RATES: With APRs that range between 5.74% to 18.99%, the personal loans of Barclays have some of the most competitive rates out there.
- RISK-FREE RATE QUOTE: You can easily see the rate you might qualify for based on a soft credit pull that does not have an impact on your credit score.
- NO PREPAYMENT PENALTY: You have the option to save on interest by paying off your Barclays personal loan early without being charged with a prepayment penalty.
- NO COLLATERAL NEEDED: The personal loans of Barclays are unsecured, you are not required to offer a collateral for the loan so you do not have to put anything you own on the line.
- NO CHECKING ACCOUNT REQUIRED: You have the choice to have the funds sent to a savings account instead.
What We Don’t Like About Barclays
- REQUIRED CREDIT SCORES: The only real downside that comes with the personal loans of Barclays is the fact that they are only available to consumers that have good or excellent credit ratings.
With the requirement for good or excellent credit, the personal loans of Barclays would not be an option for those who have experienced some credit mishaps in the recent past, or for younger borrowers who have not yet established a strong credit history.
- NO PAPER STATEMENTS: Another downside of Barclays personal loans is that they do not offer paper statements for their borrower which means that you cannot make a payment using a physical check. It also means that you would not be able to have a printed bill that you can keep for record purposes.
However, you can print your monthly statement at home by logging into your account or a accessing it through the email address that you provided.
- £35,000 MAXIMUM LOAN: Barclays only allows you to borrow a maximum of £35,000. Since most of the best personal loan providers can offer higher loan amounts, you may want to consider a different lender if you need to borrow a considerable sum of money.
Also, you would not learn how much you can borrow until after you have successfully submitted your loan application.
- Registering for Online Banking or Barclays Mobile Banking will take you 10 minutes or so. Some features like applying for Barclays loan may not work in the app as certain restrictions apply, contact Barclays directly if this happens to you.
- Download and print the agreement if you applied online. If you have signed the agreement between 7am and 10:30pm, you’ll get your money right away. Otherwise, you’ll get your money before 9am the next day.
- The rate offered may differ from the representative APR shown.
Barclays is a lender that offers very competitive personal loans that could be a great option for those who would want to consolidate their Barclays credit card debt or making a huge purchase.
Whatever your reason is, Barclays personal loans is a smart option if you are qualified to apply for one, since they come with very low interest rates as compared to many of their rivals.
You can also easily apply online from the comfort of your own home or office and be able to receive your funds in a few business days.
However, if you do need more funds than what Barclays can offer or do not meet its credit requirements, you might want to look for other options.
Frequently Asked Questions
- Can I pay off my loan from Barclays early?
Answer: You can easily settle your loan from Barclays at any time in full. You must repay both the outstanding balance and any accrued interest up to the chosen date of settlement.
- Will I receive account statements each month?
Answer: No. Paper statements are not issued for this loan product. Instead, you can view your payment and transaction history through their secure customer website.
- How do I make payments for my loan?
Answer: You will have to pay online through their secure customer website. You can choose to set up automatic repayments, or you may log in and pay manually every month.
- Can I set up automatic repayments?
Answer: Yes. You can easily sign up for automatic repayments at no additional cost. The bank will automatically deduct your payment from the checking or savings account you chose. You can increase the amount that you choose to pay to pay off your loan faster.
- Will I incur penalties if ever I make a late repayment?
Answer: Since your loan balance accrues interest every month, not being able to make your monthly payment on time could influence your total loan repayment amount. Barclays do not charge penalties for late repayments; however, interest continues to add up based on your outstanding loan principal. The bank will send you email notifications when your payments are due, and if you have missed a payment.
- Can I choose to use various bank accounts to make payments?
Answer: Yes. You may add multiple bank accounts to make payments on your account.
- Can I manage my loan account online?
Answer: Yes. You can log in to their secure customer website to check your balance, make payments, set up automatic repayments, and more.
- Will I be able to access my loan account from my mobile phone?
Answer: Yes. You can access their website through your mobile device.
- How can I contact Customer Service about my Barclays Personal Loan?
Answer: You can call their Customer Service hotline at 866-951-1416, 7 days a week, 8am – 8pm Eastern Time.
- Can I top-up my existing personal loan?
Answer: If you already have a loan from Barclays and you are interested in further borrowing, you may be eligible to top it up.