quid cycle personal loan

QuidCycle personal loans

With a focus on refinancing and consolidating expensive debt, QuidCycle is a Peer-to-peer (P2P) platform that says it wants to help to bring UK middle-income individuals together to each help each other achieve financial success.

QuidCycle puts a great deal of emphasis on its ethical nature, but is it actually just another P2P upstart? Let’s take a closer look.

What are peer to peer loans?

P2P loans are a recent trend in personal finance. They pretty much do what the name suggests, and are based around one person (or a group of people) agreeing to lend to another person for a set term and rate of interest. Like a bank, but without the actual, er, bank.

Some of these are provided by regulated organisations, like QuidCycle, and this means that users are similarly protected as when they get loans from banks. With a good credit rating and the right platform, people can theoretically get better interest rates through P2P borrowing, because it doesn’t have the overheads of all those high street branches, however P2P lenders can have very strict eligibility criteria.

What is QuidCycle?

Established in 2013, QuidCycle is an ethical P2P loans platform that specialises in simplifying and improving peoples’ financial situations through refinancing and debt consolidation. It doesn’t end there though – it also touts itself as a financial education tool, teaching its borrowers about how they can live without credit, even giving them rewards on their loans if they pay on time. The idea is that, now that you’re nice and debt free, you’ll lend to others, and we’ll all help each other out of the massive hole of debt that is modern life. Isn’t that nice!

QuidCycle doesn’t actually lend money itself, but arranges the terms and payments of it’s investors’ loans, which makes borrowing from a stranger you’ve never met a whole lot more attractive. Its parent company, Signia Money, is regulated by the FCA, so you’ll be protected if something goes wrong. Phew. So now that you know what it is, what does a QuidCycle loan actually look like?

  • Fixed terms of either 1, 3 or 5 years.
  • Borrow between £2,500 and £25,000.
  • No upfront fees.
  • No late payment fees. QuidCycle reward timely payment rather than punish missed payments.
  • No early payment or early settlement charge. If you find you can pay off your loan quicker you just do it.
  • Competitive rates.
  • Access to a wealth of educational material.
  • Rewards available for paying on time.

This all sounds great, but there are a few cons for P2P loans like QuidCycle that you should be aware of before you commit:

  • Although there are no upfront fees for using the platform, QuidCycle’s expenses are paid with your monthly payments, as a proportion of your interest.
  • Getting accepted is no guarantee of getting finance, as you can have to wait for a while before enough people invest in you. You wont get the funds until 100% of your loan is financed, which can take a while as each investor only invests a little into any given loan.
  • Interest rates are fixed for the duration of your repayment period, however the actual 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/expenditure. It may differ from the advertised “Representative APR”.

What is APR?

If you’re comparing any credit-based products, it won’t be long before you’ll come across the Annual Percentage Rate (APR). This figure is designed to provide an annual summary of the cost of a loan. It takes into account both interest and any mandatory charges to be paid (for example an arrangement fee) over the duration of a loan.

All lenders must calculate the APR of their products in the same way, and must tell you the APR before you sign an agreement, so for consumers it can be a handy tool for comparison.

Lenders are only obliged to award their advertised APR to 51% of people who take out the loan – the other 49% could pay more. That’s why it’s often referred to as the representative APR.

How do QuidCycle personal loans compare against the competition?

Comparison ordered by representative APR with affiliated products shown first. Rates updated 16 Jul 2019.

Before you take out a personal loan, it’s smart to read up and shop around. If you’ve been on the QuidCycle site and used the loan calculator, find out how much you’d be likely to pay for the same loan from some popular lenders:

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £10,000.00 over 3 years at a rate of 5.5% p.a. (fixed). Representative APR 5.5% and total payable £10,848.60 in monthly repayments of £301.35.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.4% p.a. (fixed). Representative APR 3.4% and total payable £10,524.24 in monthly repayments of £292.34.
Representative example: Borrow £15,001.00 over 3 years at a rate of 3.1% p.a. (fixed). Representative APR 3.1% and total payable £15,718.32 in monthly repayments of £436.62.
Representative example: Borrow £10,000.00 over 3 years at a rate of 3.9% p.a. (fixed). Representative APR 3.9% and total payable £10,601.64 in monthly repayments of £294.49.
Representative example: Borrow £10,000.00 over 3 years at a rate of 2.9% p.a. (fixed). Representative APR 2.9% and total payable £10,447.20 in monthly repayments of £290.20.

Compare up to 4 providers

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £2,000.00 over 2 years at a rate of 35.9% p.a. (fixed). Representative APR 35.9% and total payable £2,710.32 in monthly repayments of £112.93.
Representative example: Borrow £5,000.00 over 2 years at a rate of 16.6% p.a. (fixed) with an application fee of £20,000.00. Representative APR 22.9% and total payable £6,154.32 in monthly repayments of £256.43.
Representative example: Borrow £10,000.00 over 3 years at a rate of 34.4% p.a. (fixed). Representative APR 34.4% and total payable £15,269.04 in monthly repayments of £424.14.
Representative example: Borrow £7,500.00 over 5 years at a rate of 18.9% p.a. (fixed) with an application fee of £45,000.00. Representative APR 22.9% and total payable £12,123.00 in monthly repayments of £202.05.
Representative example: Borrow £7,500.00 over 3 years at a rate of 18.0% p.a. (fixed) with an application fee of £37,500.00. Representative APR 22.9% and total payable £10,144.08 in monthly repayments of £281.78.
Representative example: Borrow £3,000.00 over 1 years at a rate of 13.5% p.a. (fixed) with an application fee of £9,000.00. Representative APR 22.9% and total payable £3,348.60 in monthly repayments of £279.05.
Representative example: Borrow £10,000.00 over 3 years at a rate of 31.9% p.a. (fixed) with an application fee of £-12,500.00. Representative APR 42.5% and total payable £16,477.92 in monthly repayments of £457.72.
Representative example: Borrow £10,000.00 over 3 years at a rate of 49.7% p.a. (fixed). Representative APR 49.7% and total payable £17,537.04 in monthly repayments of £487.14.
Representative example: Borrow £7,500.00 over 4 years at a rate of 18.4% p.a. (fixed) with an application fee of £45,000.00. Representative APR 22.9% and total payable £11,108.16 in monthly repayments of £231.42.

Compare up to 4 providers

With no guarantor

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £2,000.00 over 2 years at a rate of 99.9% p.a. (fixed). Representative APR 99.9% and total payable £3,804.00 in monthly repayments of £158.50.
Representative example: Borrow £10,000.00 over 3 years at a rate of 34.4% p.a. (fixed). Representative APR 34.4% and total payable £15,269.04 in monthly repayments of £424.14.
On Stride
Exclusive
Representative example: Borrow £900.00 over 10 months at a rate of 140% p.a. (fixed). Representative APR 315.4% and total payable £1,625.60 in monthly repayments of £162.56.

Compare up to 4 providers

With a guarantor

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £10,000.00 over 3 years at a rate of 49.7% p.a. (fixed). Representative APR 49.7% and total payable £17,537.04 in monthly repayments of £487.14.
Representative example: Borrow £6,000.00 over 3 years at a rate of 47.9% p.a. (fixed). Representative APR 47.9% and total payable £10,364.04 in monthly repayments of £287.89.
Representative example: Borrow £5,000.00 over 3 years at a rate of 49.9% p.a. (fixed). Representative APR 49.9% and total payable £8,782.92 in monthly repayments of £243.97.
Representative example: Borrow £10,000.00 over 3 years at a rate of 41.2% p.a. (fixed). Representative APR 49.9% and total payable £17,566.20 in monthly repayments of £487.95.
Representative example: Borrow £10,000.00 over 3 years at a rate of 48.8% p.a. (fixed). Representative APR 48.8% and total payable £17,405.28 in monthly repayments of £483.48.

Compare up to 4 providers

With a guarantor who is a homeowner

Name Product Total Payable Monthly Repayment Representative APR
Representative example: Borrow £11,000.00 over 3 years at a rate of 31.9% p.a. (fixed). Representative APR 31.9% and total payable £16,381.80 in monthly repayments of £455.05.
Representative example: Borrow £10,000.00 over 3 years at a rate of 40.9% p.a. (fixed). Representative APR 49.5% and total payable £17,507.88 in monthly repayments of £486.33.

Compare up to 4 providers

Important information:
You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

Am I eligible for a QuidCycle loan?

With QuidCycle there are minimum criteria for being accepted onto the platform, outlined below. Meeting these is no guarantee of acceptance, and the interest rate you are offered may vary depending on your credit score.

  • You must be aged over 21.
  • You need to be a UK resident.
  • You need to have a UK bank account.
  • You must have 5 years of UK address history.

How do I get a QuidCycle loan?

When borrowing with QuidCycle, the first thing you’ll be asked to do is complete a quotation form, which QuidCycle uses to quickly determine if your application is likely to be approved. This quotation process will not affect your credit rating. You’ll then get an opportunity to accept or reject the loan specifications you’re offered. Running a credit search – which is what may affect your credit rating – is the final stage in processing an application. You will need to have passed all the previous requirements to reach this point.

After this, your loan is matched with investors who are able to pick you for investing in. You wont get your loan until 100% of your loan is financed, and realistically this can take a while, as each investor only invests a little into any given loan. Some people have waited months after approval, and so if you’re in need of money fast, this option might not be for you.

Frequently asked questions

*Disclaimer: The offers compared on this page are chosen from a range of products whose details Finder has access to track; they don't represent all the products available in the market. Unless indicated otherwise, products are displayed in no particular order or ranking. The terms "best", "top", "cheap" (and variations) are not product ratings and are subject to our terms of use. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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