There are many times in life when a bit of extra cash would come in handy.
There are many times in life when a bit of extra cash would come in handy. Whether you want to buy a new car or you want to start a new business, borrowing money can fast track you to the financial position you want to be in.
Unless you're borrowing money from a friend or relative, you'll find that all personal loans have interest attached. This is true whether you're getting money through a bank, a high street lender or an online lender. The only difference is how much you have to pay.
How is the interest rate on a personal loan calculated?
While some traditional lending institutions have a blanket rate for everyone who borrows money, Harmoney does things a little more personally.
Rather than having a one-size-fits-all rule, we judge each application on its own merits. We use a credit scorecard to assign you an interest rate – this is based on the information you provide during your application, such as your credit files, job situation and bank account levels.
How much interest do I pay on a personal loan?
The interest you pay on your personal loan depends on the information you provide as part of your application. This includes your credit history, including your credit score, as well as your income and expenses. Harmoney uses all this information to determine an interest rate tailored to your specific circumstances. This makes us different from banks and some other lenders. Find Harmoney's personal loan interest rates here
How do I improve my credit score?
If you're not happy with the interest rate offered, there's one way to get a better one: improve your credit score and try again in a few months.
A few simple ways to improve your credit rating include:
Avoiding making multiple loan/credit card applications at the same time.
Keep your credit limit low. If you have $20,000 available to you on credit cards, that’s what potential lenders see. It doesn't matter if you have $0 borrowed or $20,000, they just see the limit and will likely assume the worst.
Pay all debts, loans and bills on time. Every time you miss a payment, this is flagged in your history.
Make sure you have something in your name. If you don't have any utilities or credit cards in your name, then you can't have a positive rating or repair previous damage.
If you're not sure what your credit rating looks like, it's possible to request a free copy of the report that lenders see. Doing this once a year helps you keep on top of your finances and can help you shape your reputation to your benefit.
What other fees do I pay with a personal loan?
On Harmoney, there's just one other cost to your loan: the platform fee you pay when you first take it out.
Other than that, there are no extra payments. There are no monthly management fees and no fees if you want to close your account.
We value transparency in our dealings and want you to feel confident that when you sign up for a loan you know exactly what you have to pay back.
How do I apply for a personal loan?
Applying for a personal loan online couldn't be easier. Simply verify who you are and your financial situation, tell us what you want to borrow and that's more or less it.
Most applications just take a few minutes (if you have ID handy) and get a response within 24 hours. From there, if you decide to proceed, in less than a week in most cases until you have money in your account.
Find out more about personal loans on Harmoney and get one step closer to your goal.
Disclaimer. Information in these articles is written to provide general guidance, and any details are correct at the time of posting. You should consider how the information might apply to your personal circumstances, and consider whether your needs mean you should seek specialist advice.