How to get a loan

It can be really helpful to know what you can do to boost your chances of being approved. A few different factors go into whether you’ll be accepted for a loan. These include:

Your income

Lenders must do an affordability check when they receive a loan application, to make sure you can afford the repayments. Having a regular income can help a lender see if you’ll be able to make the monthly repayments.

Your credit score

A good credit rating can show lenders you’re reliable at borrowing and repaying money. A better credit score could also lead to more favourable interest rates.

It's also important to know what you need to meet the criteria before you apply. To get a personal loan with first direct, you’ll need to apply via online banking or our App and meet the following criteria:

• you’re 18 or over
• you’re a UK resident and live permanently in the UK
• you have an annual income/pension before tax of £10,000 or more
• you have a first direct current account*
• you haven’t been declared bankrupt or registered for an Individual Voluntary Agreement in the last 6 years (or in the process of doing so).

* for loans over £30,000, you must have held your first direct current account for 6 months or more.

Personal loans are subject to status. The rate you'll receive will depend on your individual circumstances, credit checks and an assessment of your financial situation. 

Make sure you can afford to repay any money you borrow. You may have to pay a fee if you miss a loan repayment. This can also harm your credit score and your ability to borrow in the future.

The longer you choose to pay back your loan, the more interest you'll pay overall.

From weddings and home renovations, to buying a car or consolidating debt, there are a number of things you can use a personal loan for.

To make things a bit clearer, here’s a list of things you can’t use a first direct loan for:

• buying property or land in or outside the UK - including holiday homes and apartments
• buying a joint stake in a property
• buying out a joint owner
• a mortgage deposit (regardless of the lender or country)
• gifting funds to support the purchase of a property, including mortgage deposits, stamp duty and solicitors' fees
• gambling
• business purposes
• share dealing.

This list isn't exhaustive, but if you’d like any clarification, contact us to find out more.

Before applying, take some time to think about whether a loan is the right option for your circumstances.

You may want to think about:

Your credit score

If you’re unable to pay your monthly repayments on time, this could affect your credit score.

How much you can afford to borrow

Be mindful of how much money you’re borrowing and whether you’d still be able to afford the repayments if your financial situation changed during the repayment period.

Type of loan

There are many different types of loan on the market. Make sure to do your research and compare the different loan types to find the right one for your needs. Look closely at the APR, and the terms of the loan.

Find out more about the first direct personal loan and whether it's right for you. You can apply for a loan with us on the first direct App, online, or over the phone.