Debt consolidation loan

A loan gives you the money you need upfront and lets you spread the cost of paying it back. So whether it's a special holiday, a car or a new kitchen, a personal loan can make it more affordable.

Loans are available to UK residents aged 18 and over. Rates will vary depending on loan amount, term and individual circumstances. Subject to status. The maximum APR you could receive is 34.5% APR.

Tesco Bank Loans: PO Box 27014, Glasgow, G2 9FE.

This means that if we decide to lend you money, it won't be secured on your home, car or other assets. You can then spend this money on the things you need.

You can apply for a loan term from 12 to 120 months depending on the loan amount and purpose. Just remember that the maximum repayment period might be lower for certain loan purposes.

We offer loans to cover costs big and small and you can be specific about the amount you need, down to the pound.

The interest rate is fixed for the life of the loan.

At the beginning of the loan we work out the interest you will pay over the whole length of your loan and add this to your loan amount. We calculate your interest charge by applying interest at a monthly rate based on the APR to the balance of your loan, as reduced by your monthly repayments. We add this to the loan amount and then divide this total by the number of monthly repayments.

The loan calculator will give you an example of what it might cost you based on the loan amount and term you want. However, the interest rate we offer may be higher depending on your individual circumstances.

Barclays will continue to use the Tesco Bank brand on all existing Tesco Bank banking products through a long-term strategic partnership with Tesco. If your application is successful, there'll be no immediate changes to how you use and manage your account on a day-to-day basis.

To find out more and view a range of helpful documents just go to tescobank.com/transfer-scheme

If you've been approved, you'll receive some important documents within five days, which you'll need to check, sign and return to us.

If you apply online, you’ll get an immediate decision and, if eligible, can digitally sign your loan agreement with us. We’ll then use Faster Payments to send the money directly to your bank account.

Once we're happy with the information you've sent, we'll fully approve your loan and pay the money into your bank account.

Sometimes it can really take the pressure off if you don’t have to start repaying your loan straight away, especially if you’ve got extra expenses to cover.

So when you apply for a loan, you might be eligible to apply for a payment break before starting your monthly loan repayments.

Your payment is made by monthly Direct Debit from the account the loan is paid into. Your first payment will be made one month after issue of the loan on the date you have chosen in your application, unless you apply for an initial payment break.

All Tesco Bank Loans are fixed rate. This means your monthly Direct Debit payments will be the same every month until your loan is paid off. Nice and simple.

We'll charge £12 each time a loan payment is late and £12 when a default notice is issued.

Yes, you can do this at any time at no extra cost. It may help pay off your loan faster, reducing the amount of interest you pay which would save you money overall. You can learn all about what this means for your loan on our page about additional payments.

You can do this at any time which could save you money on interest charges. Remember to factor in a two-month interest fee when you settle early though. For more on early settlement figures visit our page on paying your loan off early.

We'll carry out a credit reference search when you apply for a loan and a credit score will be calculated based on the information you enter and your credit reference information. This will help us make a decision on whether or not we're able to lend to you. We'll then let you know the decision and what the status of your application is.

Our loans are provided by Tesco Bank, PO Box 27014, Glasgow, G2 9FE.

The APR is the total cost of borrowing, as a percentage of the amount you owe, over a year. The APR is calculated from the annual rate of interest plus any upfront fees. It gives you a way to compare the cost of different loan and credit offers.

The annual rate of interest is the amount of interest that will be charged on your loan, as a percentage of the amount you owe, over a year.

A debt consolidation loan is a loan that can be used to pay off other debts. It lets you move lots of different debts into one place, which could help you keep track of payments more easily. When you apply for a debt consolidation loan you can ask for enough money to cover debts you have elsewhere. If you’re approved, you can use that money to pay off your debts and even close those other accounts.

As well as consolidating lots of debts into one monthly payment, a debt consolidation loan could also mean that you pay less interest. Taking out a new loan is also an opportunity to look for a loan that has a lower interest rate than you are paying on your other debts.

You may be able to reduce your monthly repayments if you choose to pay the loan back over a longer period of time. This might mean paying more interest overall but could make payments more manageable in the short term. Always check the total amount you will be expected to pay over the loan period before deciding whether to take out a loan or not.

Whether a debt consolidation loan is a good idea for you or not depends on how much debt you have and what your income is. Some of the benefits of taking out a debt consolidation loan include:

Simpler payments - By putting all of your debts in one place, you can choose to make one monthly payment. This can make budgeting simpler and payments easier to keep track of.

Lower monthly payments - If you have high interest rates on your existing loans or they are over a short period of time, you could lower your monthly payments with a debt consolation loan.

Debt is easier to keep track of - When you don’t have to juggle lots of different debt repayments, it can be easier to see exactly how much you owe and how quickly you’re paying it off. However, the repayment term for some of the existing debts could be extended and you might pay more interest over time.

A potential payment break - If you apply for a Tesco Bank Debt Consolidation Loan you can also apply for a payment break which, if approved, may mean you don’t have to start paying your loan back for up to two months. Interest will still accrue during that time.

Successfully paying off a debt consolidation loan can also help boost your credit score. That said, if you don’t meet your payments every month, you may end up damaging your score.

It may be more difficult to get a loan if you have bad credit, but you may still be able to take out a debt consolidation loan even if you have a poor credit score.

Some lenders are more likely to offer you a debt consolidation loan if it's secured against something, like your house. At Tesco Bank, we offer unsecured personal loans that aren’t secured against your other assets.

You can use our loan eligibility checker to see how likely you are to be approved for a debt consolidation loan without affecting your credit score. If it looks as though you are unlikely to be approved for a debt consolidation loan, there are some things you can do to check and improve your credit score.

You can use a debt consolidation loan to pay off a few different types of debt. That might be:

Credit card debts - Credit cards can be expensive for long term borrowing, thanks to high interest rates.

Overdrafts - Overdrawn bank accounts may mean you’re paying high interest rates and a loan could lower those.

Personal loan debts - If you have several different personal loans, a debt consolidation loan can put them all in one place.

Store cards - These can give you discounts at your favourite stores but can have big fees and high interest rates.

The first step is working how much you owe and how big a loan you need to pay back the debts you have. You can then apply for a debt consolidation loan for that amount. If you're approved, you can use the money to pay off your existing debts. You then have just one monthly payment for your outstanding debt, which could make your budgeting easier to manage.