If you are looking for a car loan from Barclays, of between £7,500 and £15,000, you could be in line to benefit from one of the bank’s lowest interest rates. But you’re still likely to find cheaper personal loan deals elsewhere.
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
You could borrow £10,000, over 60 months with monthly repayments of £200.99. Total amount repayable will be £12,059.40. Representative 7.90% APR, annual interest rate (fixed) 7.90% p.a. Credit available subject to status.
- Soft credit check which does not impact your credit report
- Funds can be paid within minutes
- Borrowing available of up to £50,000
- Can apply for second loan or top-up existing borrowing
- Must be an existing Barclays or Barclaycard customer
- Lower APRs offered by other personal loan providers
- Personalised APRs up to 26.90% depending on circumstances
Lowest representative APR
7.90% (for loans between £7,500 and £15,000)
Available loans
£1,000 to £50,000 (APR varies with loan size)
Borrowing terms
2 to 5 years
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Key features
- Existing Barclays or Barclaycard customers only
- Representative APR of 7.90% on loans between £7,500 and £15,000
- Fixed rate of interest meaning set monthly loan repayments
- Repayment terms of between two and five years
- Can apply for a second or ‘top up’ loan
- Charge of 30 days’ interest for full early repayment
Will I be eligible?
To be eligible for a car loan from Barclays, you must already have a Barclays current account or be a Barclaycard customer. You’ll also need to be at least 18-years-old and a UK resident.
As part of Barclays’ loan approval process – which includes a ‘personalised price quote’ on application – factors including your income, credit score and the length of time you have been a customer with Barclays will be considered.
Whether you apply for a car loan directly with Barclays or through a comparison website, an eligibility checker will reveal your chances of being accepted (and at what APR) without your credit score being affected.
What more should I know?
Barclays car loans are essentially unsecured personal loans that you can use how you want – you don’t have to buy a car with it. Personal loans are unsecured which means they are not tied to any asset that can be sold if you do not keep up your loan repayments.
The headline APR of 7.90% advertised on Barclays car loans of between £7,500 and £15,000 is representative. This means that – according to rules set down by the Financial Conduct Authority (FCA) – this rate is only offered to 51% of successful loan applicants. The rate you are offered could be much higher – up to 26.90% in some cases depending on your credit score and circumstances.
If you are looking for a smaller car loan from Barclays of between £5,000 and £7,500, the lender offers a representative APR of 10.90%. This rises to 20.90% on smaller loans still of between £1,000 and £5,000.
The very lowest APR you could be offered from Barclays is 3.40%. But even this rate is higher than some other medium-sized loans from rival loan providers. So, always compare the wider market when looking for a personal loan, rather than going straight to your banking provider.
If you pay off your Barclays car loan in full ahead of the agreed term, you will be charged a fee equal to 30 days’ interest on the amount you’re repaying, as well as any other interest that’s due.
How does the application process work?
The application process for a Barclays car loan takes less than 10 minutes for most people applying online or through the app, according to the bank. And – once approved – the funds can hit your account within minutes.
Is Barclays car loan right for me?
You will need to be an existing Barclays customer to apply. But even if this is the case, lower car loan interest rates may well be available from other lenders. However, while there are no guarantees, being a Barclays customer could stand you in good stead for being accepted for a Barclays loan.
Before taking out any personal loan, make sure you have the means to keep up with the repayments for the length of the borrowing term. Late or missed repayments can damage your credit score, potentially making it more difficult to be accepted for credit in the future.
What are my alternatives?
If you’re planning to borrow a small amount, it may be worth considering a credit card offering 0% interest on purchases for an initial promotional period. This way, you will not have to pay any interest, provided you repay your balance in full during the interest-free term.
