If you’re going to borrow money, it’s important that you choose an option that’s right for your circumstances, so you need to do your homework and compare all of the options available to you.
|Personal Loan||Credit Card||Current Account - Planned Overdraft|
|Applicants are approved subject to status and must be a UK resident aged 18 or over.||Applicants are approved subject to status and must be a UK resident aged 18 or over.|
|How much you could borrow||
Online Loan: £1,000 to £50,000.
Clarity Loan: £1,000 to £50,000.
|Subject to status.||Subject to status.|
|Repayment term||1 to 7 years. This term is fixed when you take out your loan.||Credit cards are designed to be a flexible form of borrowing so there is usually no set repayment term.
It's worth bearing in mind that some of our cards have interest-free promotional periods and these are usually only for a specified period of time. In order to keep this promotional rate you will need to pay at least the minimum payment each month and stay within your credit limit.
Only paying the minimum will cost you more as it’ll take longer to clear your balance.
|Overdrafts are designed to be a flexible form of borrowing however you should note that they are repayable on demand.|
|Fixed interest rates/fees?||The interest rate is fixed and guaranteed for the life of your loan. We don't charge you any fees to set up your loan but fees can apply if you miss a payment.||Interest rates are variable, which means they can either go up or down. To find our more about variable interest rates, call our Credit Card Customer Services team.||Depending on your account, we may charge you either debit interest or a daily fee for using an overdraft.|
|Repayments||Fixed monthly repayment with the option to overpay however much you like whenever you like.
Also, there's no fee for paying off a Clarity Loan early so you could pay off in a lump sum at any time. This could shorten your loan's term or reduce the amount of interest you pay. An early settlement adjustment may be made on our other loan products.
|It’s up to you how much you repay each month. You must pay at least the minimum payment by the due date each month, but you can also choose to pay either the full balance, a fixed percentage of your account balance or a fixed amount each month to reduce your balance quicker.
You won't be charged for paying more than the minimum payment and can set-up a direct debit for all of these options to help ensure you don't miss any payments.
|An overdraft can help tide you over until your next pay day when your account will go back into credit.|
|Secured against your property?||No.||No.||No.|
|Find out more||Find out more||Find out more|
If you're an existing Halifax Mortgage customer, you may be able to borrow more.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We want to make sure you're comfortable with the amount you borrow and that you're confident about paying it back. So it's worth asking yourself a few questions before you decide:
APR stands for the Annual Percentage Rate. You can use it to compare different credit and loan offers. The APR takes into account the interest on the money you borrow and other charges you have to pay, for example, any arrangement fee. The APR won't always include all fees and charges - you may still need to pay missed or late payment charges, or balance transfer fees for credit cards for example.
The Representative APR is calculated by looking at the rate, at least 51% of, customers are expected to receive when applying.
EAR stands for the Equivalent Annual Rate. This is the actual interest rate of an overdraft or credit card. It doesn't take account of any fees or charges.
Section 75 of The Consumer Credit Act 1974
Section 75 of The Consumer Credit Act 1974 gives credit card customer’s legal rights if they’ve paid for goods or services using their credit card. It applies when the total price of the goods or services is between £100 and £30,000 and all or part of the purchase price was made using a credit card.
If you’ve bought something using your credit card, the credit card issuer and the merchant may be equally liable for compensating you if things go wrong. For example if there's a breach of contract or misrepresentation by the merchant against you, you may be able to successfully claim a refund through us.
When you apply to borrow money, many lenders will use a credit score to help them make a decision on whether to lend the money or not. When you apply to borrow from us, your score might be based on what we know about your existing accounts with us, and information from other credit reference agencies. If you’re an existing Halifax customer, you can get a loan quote which won’t affect your credit rating. With a good credit history and payment record you're likely to be given a good credit score. If you've had many credit cards and loans, have missed payments and made lots of lending applications you may get a lower score. A low score may mean you're lent less money, given a higher interest rate or your application is turned down.