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As one of the few providers that will lend to the financially unfortunate without a guarantor (a friend or relative with good relative who applies with you and promises to repay in the event that you don’t), Likely Loans’ rates are high, but that’s to be expected with these kinds of loans. It has a quick and easy application process and can provide funds the day after you apply.
Calculate the cost of a Likely Loan
What is Likely Loans?
So-called because borrowers with less than perfect credit histories may be more more likely to get approved, Likely Loans is a direct lender that’s part of the Oakbrook Finance group, and a relatively new addition to the poor-credit lending market.
It won the “Non-Mainstream Loan Provider of the Year” award from MoneyFacts in 2017, and despite being a relative-newcomer Likely Loans is already making a big name for itself. It specialises in small loans, simple applications and improving bad credit. So might be for you if you’ve had trouble getting finance on the high street.
Whether you need £500 to fix the car or £5,000 for a new kitchen, with Likely Loans you won’t need a guarantor, so you can make your next steps independently. Paying back your loan on time can improve your credit score, helping you to get better rates next time you borrow.
Key features of Likely Loans at a glance
|Loan type||Unsecured Personal Loan|
|Loan amounts||£1,000.00 to £25,000.00|
|Loan terms||1 Year to 5 Years|
|Loan rate type||Fixed|
|Same day funding available|
|Instant decisions in most cases|
|Soft-search facility available|
|Overpay without penalty|
|Concurrent loans allowed|
|Topping-up pays off existing loan and initiates a new loan|
|Repayment methods||Direct Debit|
Interest rates are fixed for the duration of your repayment period, but the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, your credit rating and your income. It may differ from the advertised “Representative APR”.
What does representative APR mean?
The annual percentage rate (APR) is there to provide an annual summary of the cost of a loan. It takes into account both interest and any unavoidable fees to be paid over the duration of a loan. If a loan doesn’t come with a product/arrangement/application fee (as is the case with Likely Loans), then usually the interest rate and the APR will be the same. Fees that you might incur, like missed payment fees or early redemption fees, aren’t taken into account.
The representative APR is the APR that a lender realistically expects 51% of its customers to receive.
The vast majority of lenders tailor the rates they offer to each applicant. This is known as risk-based pricing. It means that the 51% of applicants with the best credit scores tend to be offered the representative APR, while the other 49% are likely to be offered a higher rate.
Am I eligible for a Likely Loans personal loan?
You should only apply for a Likely Loans personal loan if you’re certain you can meet the repayment terms, and you meet the following criteria:
- You’re a UK citizen
- You’re over 18
- You have some credit history
- You have a bank or building society account
- You haven’t been bankrupt in the last 12 months
- You have some form of income (a pension counts)
What credit score do I need to get a Likely Loans loan?
Likely Loans typically offers loans to applicants with fair or poor credit ratings (if you have good credit, you may be able to get better rates elsewhere). It's important to note that your credit record is just one factor that Likely Loans will consider, however.
A "Fair" or "Poor" (or "Very poor") credit rating means a score below 881 if you're referring to Experian's scale, 531 if you're referring to Equifax's scale and 604 if you're referring to TransUnion's scale.
Do Likely Loans loans give an instant decision?
Yes, Likely Loans offers instant decisions online in most cases (occasionally more information may be required). First, you can use the soft search eligibility checker to find out your chances of getting approved (this won't affect your credit score). Then, if you opt to go ahead and apply, you'll get an instant answer.
Can I get a second Likely Loans loan?
Likely Loans doesn't allow you to run multiple loans at the same time.
Can I make overpayments on a Likely Loans loan?
Yes, you can make overpayments without incurring any penalty fee. However Likely Loans can continue to charge interest for up to two months on any sums overpaid, so although making overpayments stands to save you money in interest, you may not save quite as much as you'd imagined.
Pros and cons
- No guarantor required. You don’t need to find a friend or relative who can apply with you, but just bear in mind that if you could, you might access better rates through other lenders.
- Applicants with bad credit considered. Likely Loans will look at more than just your credit score when considering your application. Crucially though, you’ll need to be clearly able to afford the repayment schedule of the loan you apply for. You also don’t need to be a homeowner.
- Find out if you’ll get approved before you apply. You can find out your chances of approval plus the rate you’d be offered, before you apply and without affecting your credit score.
- It’s very expensive. This is the big one. Because there’s no guarantor involved and the loans are primarily for people with bad credit, the interest rates are sky high. As such, you should aim to borrow for as short a period as is comfortably affordable for you. You may be specifically avoiding guarantor loans, but if you could find a suitable guarantor, you’d likely be able to access a significantly cheaper loan. Likewise, if you’re a homeowner with a mortgage, you could also consider using the equity in your property as security on a loan with a better rate.
How can I apply?
If you like the sound of a Likely Loans loan, you’ll need to have your bank details to hand and your passport or driving licence (although it may not ask for this). Then all you need to do is:
- Go to the likely loans website and fill out the simple online application form.
- You may be asked for proof of identity, in which case there is a simple method for uploading this.
- Your application will be processed overnight and you’ll receive your final decision and documents the next day.
- Sign the contract and the money could be in your account in just a couple of hours.
Frequently asked questions
Will you be approved?
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