Let’s face it—there times when we find ourselves needing money for things we didn’t plan for. Having a baby, renovating a home, or just lumping your debt together can be a stressful situation.
Getting a personal loan to not only consolidate your debt but also help you put your worries at ease, is critical.
We’ve talked a lot about personal loans here at Money Under 36, so in this article, I want to review Barclays personal loans to give you yet another option.
Types of loans Barclays offers
Barclays personal loans can be used for virtually anything. Because it’s unsecured, there’s no collateral that needs to be tied up against it, like a mortgage. That being said, they do encourage you to use your loan for a few different purposes (and you’ll be asked what the purpose of the loan is when you apply). Here are some of the ways you can use a Barclays personal loan:
The average American has close to $17,000 in credit card debt and many carry 4 credit cards or more.. If you have credit card debt or other types of debt scattered across different accounts at unfavorable interest rates, you can use a debt consolidation loan to lump everything together.
Barclays is flexible enough on their loan amounts and interest rates to make it an excellent option to consolidate your debts into one, low monthly payment.
Most of us experience major lifetime milestones, such as having a baby or getting married. Barclays has you covered for these types of large expenses.
With the average cost of a wedding approaching $26,000 and the cost to deliver a baby coming in around $3,500 (not including the cost to raise the child), it’s easy to see why you might need some extra help. When you don’t have to stress as much about how you’re going to afford these milestones, you can focus on the event itself instead.
Many Americans are spending way too much money on vacations they can’t afford. Ideally, you’d have this money set aside for when the time comes, but that doesn’t always happen.
With stress levels on the rise, it’s understandable why you may want to take an impromptu vacation. Not to mention the deals you might catch by booking last minute. However, we never recommend taking out money for non-essential expenses if you can’t afford to pay it back in a timely manner.
A recent study showed that homeowners now spend about $60,000 on average on home renovations. Millennials are also spending considerably more than they have in the past, accounting for nearly 43 percent of that figure.
With more of us wanting to put money into the homes we’re buying, that money has to come from somewhere. Being that the majority of spending comes from new homebuyers, they most likely don’t have equity to spare out of the gates. That means they’re borrowing.
The average family of four will spend about $28,000 on healthcare in a single year, according to recent data. While most of us have health insurance, we still run into out of pocket expenses and medical emergencies that you cannot predict.
Jesse Mecham, the author of You Need A Budget, tells a story in his book about a man who had a daughter who experienced a rare medical condition that caused them to have to come up with tens of thousands of dollars. Thankfully the man was able to budget for this and save in advance, but that’s more the exception than the rule. When these types of expenses come up unexpectedly, you might want to consider taking advantage of a personal loan.
According to Statista, approximately 6.3 million passenger cars were sold to customers in the United States in 2017. And the industry average for car prices has risen recently, too, now costing just over $36,000. So we’re buying cars and we’re spending a lot of money on them.
This is just one example of a major purchase that can be accommodated with Barclays personal loans.
Barclays doesn’t specify an exact requirement for eligibility on their personal loans, which means they’ll review each on a case-by-case basis. That said, they’re looking for customers who have an experienced credit profile with good-to-great credit. So I would recommend having a credit score of at least 700 before applying for a loan with Barclays.
Barclays interest rates and repayment terms
Barclays offers personal loans with a minimum of $5,000 and a maximum of $35,000. Their APR ranges from 5.74% to 18.99% for most customers, and their loan terms range from 36 to 60 months.
Barclays perks and benefits
Barclays says that one of their perks is “financial freedom” and that you can “break free from the burden of high-interest debt.” While that’s inspirational, some of the more tangible perks include:
Quick rate check
You won’t have a credit impact to get an estimate of the rate you’d qualify for on a personal loan. When you do a quick rate check, you submit some basic information to Barclays and they do a soft pull on your credit to give you a range of what you’d qualify for.
This will not impact your credit score unless you decide to move further in the process and submit a full application.
One of the best things about Barclays personal loans is that they don’t charge fees. While their interest rates are competitive, they’re set up to allow them to still be profitable as a bank, helping you as the customer avoid unnecessary fees such as origination or monthly maintenance fees.
Another perk is that while there are set repayment terms, Barclays doesn’t penalize you for paying off your loan early. You can pick a due date that works for you, pay any amount, and knock your balance out early if you have the ability to. There’s no fee for that and it makes having a loan with Barclays super flexible.
Once your application is approved, you’ll have your money in a matter of days. You can have the money put right into your checking account, or if you want to consolidate your debt, you can have Barclays pay off up to five credit cards directly for you.
Other Barclays products
Barclays also offers some excellent credit cards. If you’re a traveler, you will like the Barclaycard Arrival(R) Plus World Elite Mastercard(R). With this card, you’ll earn 70,000 bonus miles when you sign up, are approved and spend $5,000 in the first 90-days, 2X miles on every purchase, and 5X miles back to use toward your next redemption every time you redeem miles for travel.
If you’re looking for a balance transfer, they also offer the Barclaycard Ring(R) Mastercard(R), which features a 0% intro APR for 15 months on balance transfers, no foreign transaction fee on purchases, and no annual fee.
Savings and CDs
Barclays has a fantastic online savings account if you’re looking to sock away some extra cash. They’re currently offering 2.20% APY with no monthly maintenance fees and no minimum balance requirements.
For CDs (which are making a comeback), they’re currently offering an aggressive 3.10% APY on a 60-month CD. Interest compounds daily and there are no hidden fees.
Alternatives to Barclays personal loans
There are plenty of options to find the best rates on personal loans. If Barclays isn’t for you, or if you don’t meet their minimum qualifications, you definitely have options.
|Loan Options||Personal loans||Personal loans||Personal loans|
|Fees||None||0.99% – 5.99% origination fee||2.4% - 5% origination fee|
|Borrowing Amount||$5,000 -$35,000||$2,000 – $35,000||$2,000 - $40,000|
|Repayment Terms||36 - 60 months||36 - 60 months||3 or 5 years|
|APR||5.74% - 18.99%||5.99% – 29.99%||6.95% - 35.99%|
Or, you can check out our comparison of personal loans to figure out which route suits you best.
As an online-only operation, Barclays is relatively new, but they’ve been in Europe for decades. If you’re looking to get a loan for anything—whether it’s debt consolidation, renovating your home, or getting married—we highly recommend looking at Barclays for your financing needs.