Amount of credit: £1,800 for 24 months at £135.47 per month. Total repayment of £3,251.27. Interest: £1,451.27. Interest rate: 65% pa (fixed). 88.1% APR Representative.
One of the most important considerations when looking for a loan is the interest you'll pay. Even if you can get the amount you want, a high interest rate will mean that you pay much more in the long term than you would for a loan with a smaller rate. Below, you can learn more about some ways that interest rates are determined and how you can work towards getting lower rates for your loans. If you're looking for funds, you should check to see whether On Stride Financial's loan amounts and interest rates make sense for you.
You can apply today for an On Stride Financial loan from £1,000 to £3,000. Loans are unsecured with a duration of 1 or 2 years, and an APR of 89%. Actual loan amount, specific APR and loan duration may vary based on application details.
Lenders determine interest rates in complex ways, usually involving factors like determining a person's ability to repay the loan, overall affordability, government regulations, and economic analysis. As a consumer, however, there are four factors that will be most important when determining your interest rate: your credit rating, your previous relationship with the lender, your current financial situation, and the amount and length of the loan.
What these factors boil down to is trust — the more trust a lender has in a borrower's ability to repay, the lower the rates they're willing to offer. It's easy to see how this is the case when you consider each factor.
High credit ratings indicate a long history of timely repayments, evidence that an individual is likely to behave the same in the future. Similarly, if a borrower already has a good relationship with a lender — having repaid a loan with them in the past, for instance — the lender will be more confident that the borrower will repay again.
Finally, lenders can be more confident about borrowers' ability to repay when loan amounts are low and terms are short. If someone has the resources to repay a small loan now, they likely will still be able to in a week or a month. On the other hand, an unforeseen financial disaster might impair a borrower’s ability to repay a loan that is much larger or is scheduled to be repaid over a long period of time. A higher interest rate helps the lender reduce these risks.
If you'd like to reduce your interest rates, the best thing to do is to consider the factors discussed above. You can start to increase your credit rating by using credit responsibly, paying on time and keeping low balances on a small number of cards. Establishing a good relationship with a bank or other lender will also often help you get more favourable interest rates in the future.
On Stride Financial's instalment loans come in amounts between £1,000 and £3,000, with repayment terms of 1 or 2 years. If approved, your APR will be 89%. At this point, you can customise your loan — choosing to borrow less than your maximum or to repay over a shorter period of time, for example, in order to minimise the amount you spend on interest. We clearly lay out all terms and conditions before you sign, letting you see exactly how much you’ll have to repay before you commit. If you have any further questions, you can contact us via phone or email. Our customer support team is available 9:30 a.m. – 6 p.m., every Monday – Friday.
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