How does Loal help me access cheaper credit?

Loal works with you to improve your credit score and profile, and access cheaper, larger and more sustainable credit solutions. When you borrow and repay with Loal, the interest rate on your next loal can improve by a lot! A Loal Plus loan can be up to 86% cheaper than a Starter Loal.

Once you’ve downloaded the app and set your money goals, Loal will let you know if you’re eligible for a Loal Starter.

The Loal Starter

The Loal Starter is key to understanding your ability to borrow and pay back. It gets you on the road to building your credit profile and can help unlock much cheaper credit in the future. Borrow between £100 and £800 for six months, pay back on time and Loal can offer you much lower rates, longer terms and larger amounts on future loans.

Swap your Loal

If you pay on time every time, you’ll be rewarded with the option to swap your loan for a new one with a lower interest rate. This means you don’t need to wait until the end of your current loan to access the cheapest price possible. If you’re a perfect payer, meeting your commitments on time, you can swap your loan in as little as 6 weeks.

Loal – A loan with a goal

Once you’ve paid back your Loal Starter, you’ll be eligible to apply for your first Loal – a loan with a goal. You’ll be able to apply for a Loal of up to £1,750 and your rate can drop by two thirds (up to 64%), depending on the repayment behaviour from your Loal Starter. You’ll also have earned the right to apply for a longer term of up to 12 months, meaning you can spread the cost of repayment over a year.

If you continue to repay your Loal on time, the rate on your second Loal can drop by another 27%, further reducing your monthly repayments and moving you closer to the rates of high-street banks. What’s more, Loal feeds back information about your repayment behaviour to Credit Reference Agencies, which can have a positive impact on your credit score and open the doors to other financial products and services from mainstream providers.

Graduate to Loal Plus!

Because of your proven track record and the fact you’ve been building your credit profile, you can graduate to a flexible long-term personal loan. The Loal Plus lets you leave High Cost Short Term credit behind. Borrow up to £5,000 for up to three years with a rate reduction of up to 70% compared to your Loal.

Your interest rate will improve if you consistently repay on time. However, missing payments or taking out other loans from other providers can damage your affordability status and reduce the chances of Loal being able to lend to you in the future or at the lowest rates possible. Terms and conditions apply and all our loans are subject to status. You will be shown varying offers and options when you apply on the Loal app.

Still having trouble?

Don’t worry, if you cannot find the answer to your question here, get in touch with one of our team.

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