Key Information
lightfinance.co.uk acts as a credit broker, not a lender.
Criteria
To be eligible for a loan you will need to:
- Be a UK Resident
- Be over 18 years old
- Be in permanent employment, receiving a pension or disability benefit/living allowance
- Have a bank account
- Meet the lenders criteria and credit affordability assessment
Do I need a debit card to apply?
This is a requirement of the lender in order to pay the proceeds of your loan. (Light Finance does not charge any fees.)
Borrowing money - what should I do?
You should only apply to borrow money through a loan or any other means if you absolutely need to and do not have any alternative sources of funding. If you do need to take out a loan, you should think carefully about how much you need and the long-term cost of making loan repayments before you commit to any borrowing.
You should never borrow more on your loan than you actually require, as (in the majority of cases) this will increase the interest charges and overall cost of the loan. Remember that your loan repayments are likely to continue long after the money you borrowed has already been spent!
If you wish to renew your loan, please discuss this with your lender in advance. Most lenders will charge the same rate of interest and fees for another month on the entire amount owed. In the event of non-payment, a loan renewal/extension could be automatic and further interest and/or charges may be added to your account
Charges and fees
Some lenders may charge up-front fees when you take out a loan with them and these charges should be factored into the cost of the loan. In some cases, fees and charges may be added to the loan, but you should be aware that in such cases these will attract interest charges, which could significantly increase the overall cost of the loan.
Late or missed repayments will also impact negatively on your loan. Apart from lowering your credit score, the lender may also apply additional charges or penalties to the loan. These will usually be added to the loan and, as with any other added fees, will attract interest charges over and above the amount of the penalty itself.
Note: We will never contact you and request that you send money or ask you to buy any products prior to receiving your loan.
Credit Ratings - How Do They Affect Me?
When a credit agency assigns a rating to someone, they'll take into account a range of information, including past credit history. The final rating assigns the person a certain number that a creditor can then use to determine their risk of defaulting. How a creditor interprets those numbers, however, is up to them. They are not required to accept or deny a loan application based on credit ratings alone.
It's important not to reduce the process of applying for a loan to good credit and bad credit. A creditor can take into account a range of factors - while one direct lender might reject a person for having less-than-perfect credit, another creditor might accept their loan application. There are no "good credit loans" or "bad credit loans," just a range of creditors willing to accept different levels of risk. However, people who have less favourable credit ratings tend to pay more for credit. For example, interest rates for people with lower credit scores may be higher than those with higher credit scores.
My Credit Score
Although taking out a loan is one way you may be able to improve poor credit, you have to be careful. Each loan application can be marked as an enquiry in your credit history; too many enquiries can indicate a need for funds or that you're taking on debts you cannot repay. The initial application process is likely to lower your credit score at first and it will only improve once you have been making repayments on the loan for several months, being able to demonstrate an ability to afford and maintain the regular repayments. Taking out a payday loan is likely to have a detrimental effect on your credit score, even if it is repaid straight away (many mainstream mortgage lenders will now automatically decline a loan application where the borrower has had a payday loan!). Failing to meet payments will negatively impact your credit score and set you back even further. Only take out a loan if you know you will be able to pay back the complete amount during your contractual repayment period.
There are other ways to improve credit, such as paying off bills on time can also help. Whether it's electric, water or credit card bills, paying the full amount on time can show you to be a reliable borrower. Loan companies checking your payment history can see those recent, timely payments and may consider you for a loan with better terms.
Working hard to better your credit score may also give you a better chance for loan eligibility and lower interest rates.
Our Service
We are not a Lender or Provider and therefore we will not provide finance directly to you; we provide an online loan matching service, we will introduce you to Lenders or Providers of financial services. By submitting an application form you will be giving your consent for TFLI (US) INC who is an Appointed Representative of TFLI Limited to match your application with one of the Lenders or Providers on our panel. We will present your application in real time to one or more of our Lenders or Providers based on their lending criteria until such time as one of our Lenders or Providers accepts your application or all Lenders and Providers decline your application. If a Lender or Provider accepts your application you will be forwarded to their Website that they have requested we direct you to or if the Lender or Provider does not work online we may present you with a screen that gives you information and contact details relating to the Lender or Provider that accepts the application.
It is important to understand that we will only forward you to a Lender or Provider that has looked at your application and accepted it as one they believe there is a good chance they can provide a loan or relevant services to you. It is also important to understand that we may be paid a fee by the Lender or Provider for introducing you to them and we may pay a portion of that fee to the Website owner that is using the application form as a service.
If we are unable to find the exact amount and/or term that you have requested, our lenders may offer you an alternative amount and/or term. There is no obligation to accept the alternative offer if it doesn't meet your needs. You should read their conditions carefully and make a responsible decision on whether you believe their service is right for you. If you have any questions or are unsure you should contact the Lender or Provider before taking out any service or loan with them. There is no obligation for you to take up the loan or service with them.
If we have been unable to provide a lending outcome, we may suggest alternative products in relation to the enquiry. These are none obligation and can be dismissed if they are not of interest. We may receive commission from these products should you utilize their service. If you do not find any of the options presented to be of assistance, we recommend the help offered by https://www.moneyhelper.org.uk/en
Struggling to Maintain Payments:
If you are struggling to make repayments on a loan you should contact your lender right away. You can also get free advice from debt charities like Stepchange, Citizens Advice Burea and the National Debtline
Warning: Late repayment can cause you serious money problems. For help, go to https://www.moneyhelper.org.uk/en
How APR works is best explained with an example.
If you borrow £1,000 on a credit card with a 12% APR, over the course of a year it will cost you £120 (if you pay nothing back). However, as you are likely to have to make some minimum repayments, the total interest you will actually pay over the course of the year will be less than this.
APR is typically added to a debt on a monthly basis, to find a monthly interest rate simply divide the APR by 12. So if the APR is 12% the monthly rate is 1% and if you owe £1000 you will be charged £10 interest each month.
It's also worth noting that the longer the period over which you spread your repayments, the lower the monthly cost but the higher the overall interest paid.
Representative Example
Borrow £300 for 3 months / Interest payable £154.38 / Total amount payable: £454.38 in 3 instalments / 3 payments of £151.46 / Representative APR 1,721% / Interest rate 292% per annum (fixed) / Maximum APR 1,721%
Representative APR 1,721%
Rates between 5.9% APR to a Maximum of 1,721% APR
Loan terms lengths between 3 and 60 months.
What is representative APR?
You might see the phrase "representative APR" used on lenders' sites. This simply means it's the rate that most customers (that is, more than half) will be offered, although not everybody will get exactly the same rate. You can use the representative APR as a general guide to how competitive a lender is.
The lower the APR of your loan, the less you're paying to borrow.
Commissions
Light Finance act as a broker and not a lender, as such we may receive commission for introducing you to a lender or an alternative product. Information regarding commissions can be disclosed upon request.
What do I do if I have changed my mind after signing up to a product?
You can withdraw from your agreement within 14 days of you signing the loan agreement by contacting the via lender, email or telephone. If you withdraw from the agreement, you will be required to repay to the lender the credit, and any accrued interest from the date the credit was provided to the date of repaying it, without delay and in any event within 30 days of the day after the day that you gave notice of your withdrawal.
If you have accepted the offer for an alternative product and have changed your mind, please contact the supplier directly and they will assist you in your cancellation. If for any reason you are having difficulty in contacting a supplier, Light Finance can help you find their contact detail should you request this with us.
How Do I Make A Complaint?
If you to make a complaint about the service you have received, please contact us below outlining your concerns.
By Post:
Complaints Manager
TFLI Limited (on behalf of TFLI (US) Inc)
First Floor Beechwood Court
Springwood Way
Tytherington Business Park
Macclesfield
Cheshire SK10 2XG
By Telephone: 01625 32 25 55
By Email: email us compliance@tfli.us