Loans 2 Go – Could Little Loans Be An Alternative?
What is Loans2Go?
Loans2Go says that it is “an industry leader in the provision of alternative, affordable personal loans” and that the company “continues to develop innovative approaches to lending, customer service and account management”.
Loans2Go is a lender, not a broker, so it lends money directly to the public. The company is based in London.
Is Loans2Go a legitimate company?
Yes, Loans2Go has been established for over 20 years and is authorised and regulated by the Financial Conduct Authority (FCA).
At the time of writing, the company has a 4.4-star service review rating on Feefo.
What loans does Loans2Go offer?
Loans2Go offers unsecured personal loans from £250 up to £2,000. You can use the money for whatever you wish. The loans can be repaid in weekly, fortnightly or monthly instalments, over either 18 or 24 months. You can also repay the loan early if you want to.
Who can apply for a Loans2Go loan?
To apply for a loan with Loans2Go you must be a UK resident aged 21 or over and in a job with a regular income. You also need to have a UK bank account with a debit card.
Loan applications are made online. If you’re approved, Loans2Go says it can have the money in your account on the same day. This is subject to the company’s opening hours.
How much interest does Loans2Go charge?
The amount of interest you could pay can vary depending on the loan but their typical loan of £550 over 18 months has a representative interest rate of 770% APR. APR stands for Annual Percentage Rate and is the total cost of your borrowing over a year, including interest and other charges.
With this APR, if you borrowed £550 over 18 months, each monthly repayment would be £113.06. You would have to pay back £2,035.08 in total.
Can you repay a Loans2Go loan early?
Yes, you can pay the loan off early. There are no early repayment charges, and you would pay less interest than if you continued with the instalment schedule.
How are repayments made to a Loans2Go loan?
Loans2Go recommends setting up a continuous payment authority on your debit card. As part of your application, you would give it authority to take the repayments from your debit card when each of your repayments is due. You can also make other payments on the company’s online portal using your debit card, over the phone, or making direct payments from your bank.
Can you get a Loans2Go loan with poor credit history?
Loans2Go says that it may consider you even if you have a poor credit history or county court judgement (CCJ) but whether it will lend to you depends on your personal circumstances. The company would need to ensure you can afford the repayments. It will not lend to people subject to bankruptcy or an individual voluntary arrangement (IVA).
Can you cancel a Loans2Go Loan?
By law, you have the right to cancel a Loans2Go loan within 14 days of receiving the loan money. You have to tell the company within 14 days, but you have up to 30 days after the loan to return the money.
When you cancel, you will have to pay the interest accrued up until the point you return the money, unless you cancel and return the loan amount within 5 days of receiving it. If returning the money within 5 days, you only have to return the loaned amount, not any interest.
Are there alternatives?
Loans2Go offers loans to people who might be turned down by mainstream lenders. The interest rate you pay may therefore be higher than advertised elsewhere. There are a number of other specialist lenders who also provide loans to people who find it hard to access credit from traditional banks.
Little Loans offers customers the opportunity to find flexible, transparent loans from a range of specialist UK lenders for amounts ranging from £100 to £10,000. You can apply online for an instant decision and, once approved, your cash can be sent to your bank account within minutes.*
The Little Loans free loan eligibility checker allows you to see whether you are likely to be accepted before you apply, without affecting your credit score.
Representative example: Amount of credit: £1000 for 12 months at £123.40 per month. Total amount repayable of £1,480.77 Interest: £480.77. Interest rate: 79.5% pa (fixed). 79.5% APR Representative. We’re a fully regulated and authorised credit broker and not a lender