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Loans — FAQs

Common questions about getting a loan after a debt solution, what representative APR means and the important things to consider before borrowing.

Can I get a loan after an IVA or debt management plan?

It may be possible to obtain a loan after completing an IVA, debt management plan or other debt solution, but it depends on your individual circumstances. Some lenders consider applicants with a history of debt solutions, though any offer will depend on factors such as how long ago the arrangement ended, how you have managed credit since, your income and outgoings. A loan is not guaranteed and you should think carefully about whether additional borrowing is the right option for you.

Will bad credit affect the loan rates I am offered?

It can. Lenders use your credit history as one factor in deciding the terms they offer. If you have adverse credit such as defaults, CCJs or a debt solution on your file, the rates available to you may be higher than those offered to someone with a clean credit history. It is important to compare any offer carefully, including the APR and the total amount repayable, to decide whether the loan is affordable and worthwhile for your situation.

What does the representative APR mean?

The representative APR is the annual percentage rate that at least 51% of successful applicants will receive. It includes the interest rate and any mandatory charges, giving you a standard way to compare the cost of borrowing between lenders. The rate you are actually offered may be higher or lower than the representative APR depending on your personal circumstances, credit history and the lender's assessment.

How much can I borrow with a personal loan?

The amount you can borrow depends on the lender's criteria, your income, your existing financial commitments and your credit history. Lenders carry out affordability and creditworthiness assessments before making an offer. If you have been through a debt solution, the amount and terms available to you may differ from standard lending. You should only borrow what you can comfortably afford to repay.

Does checking my loan options affect my credit score?

Looking at indicative loan options will not normally affect your credit score in the same way as a full application. Before any lender carries out a credit search that could leave a visible footprint on your credit file, we or the lender will explain what is happening so you can decide whether to proceed.

What happens if I cannot keep up with loan repayments?

Missing loan repayments can have serious consequences. It could result in additional fees and charges, damage to your credit score, and may make it harder to borrow in the future. If you are struggling with repayments you should contact your lender as soon as possible to discuss your options. Free independent advice is available from services such as MoneyHelper, StepChange and Citizens Advice.

Does Next Path guarantee that I will be accepted for a loan?

No. Next Path is a credit broker, not a lender. We introduce you to FCA-authorised partners who carry out their own creditworthiness and affordability assessments. We cannot guarantee that you will be accepted for a loan, and any offer you receive will be subject to the lender's checks, criteria and full terms and conditions.

Do I have to go ahead if I ask about loans?

No. There is no obligation to proceed. You are free to compare offers, take time to think and decide not to go ahead. Taking on additional borrowing is an important decision, particularly if you have been through a debt solution, and you may wish to seek independent financial advice if you are unsure whether a loan is right for you.