Consolidation Loan
Make managing your finances simple and stress free
Combining your loans, credit cards and store card debts into one loan is often a way to save money and reduce your monthly outgoings.
If you are approved for one of our Consolidation Loans, you may be in a position to repay all your other debts elsewhere. You would then only need to make one loan repayment each month, making life much more straightforward.
How much can you apply for?
| Borrow | Repay Over | Interest Rate |
|---|---|---|
| £1,000 - £1,499 | 6 to 24 months | 42.6% APR |
| £1,500 - £2,999 | 6 to 36 months | 30.0% APR |
| £3,000 - £7,500 | 12 to 60 months | 15.0% APR |
Key Features
- Apply straight away – no need to save first
- Affordable repayments over a term of up to 5 years
- Save alongside your loan repayments
- No loan arrangement fees or set-up costs
- No early repayment fees if you want to settle the loan early
Eligibility Criteria
You can apply for this loan if:
- You have a good credit record
- Your debts are between £1,000 and £7,500
- You have not taken out any new credit in the last 6 months
Before You Apply...
Either make sure you have your last 3 months' bank statements ready to send
OR if you have mobile or online banking, you can give your bank consent to transfer your last 90 days of transaction data, using the secure link provided in the application
You will also need to send:
- A breakdown of the debts you wish to repay (including payment details)
- Proof of any income not showing on your bank statements
- If you receive Universal Credits, a copy of your breakdown showing the elements you receive
What Are Your Chances?
- You are More Than a Score to us, so we won’t make a decision just based on your credit score
- You are more likely to be approved if you have not taken out any new credit elsewhere recently, and your overall level of credit has been stable or reducing
- You are more likely to be approved if you are a homeowner
- You are more likely to be approved if you are aged between 30 and 60 years old, and have a good, stable income
Frequently Asked Questions
You can join and apply for a loan at the same time, by clicking on the 'Apply Now' button. You will need to complete your sign-up and pay your membership fee, before we can issue a loan to you, so look out for our emails and post and reply as soon as you can.
No. Our Debt Consolidation Loan does not require you to build up savings before you apply.
We only consider debt consolidation applications where your recent credit record is good. With these loans we also like to see that you have stopped using any credit facilities prior to applying, and haven't taken any new credit recently.
Generally if you have poorer credit, approval rates are higher on our savings based loans, so it may be worth building some savings with us. If your credit record is poor because you are really struggling to afford to repay your bills as they are due, we would recommend seeking support with your debts.
Yes - we can take both employment income and income from benefits into account when verifying your total income as long as you can provide proof of what you receive.
Due to the nature of the loan purpose, top-up loans are unavailable for this product. Further loans can be applied for once the Debt Consolidation loan is repaid in full.
Yes. We offer a paper loan application. You can request one by calling our telephone helpline or emailing our admin team. We will then send your loan application in the post. Alternatively you can collect one from our office.
Alongside your application form, we will also need the following:
- Your most recent three months' bank statements.
- If you receive Universal Credit, a copy of your payment breakdown, showing the elements you receive and any deductions.
- If you are Self-Employed, a copy of your most recent self-assessment tax return, or a letter from your accountant confirming your income.
- If you have any other income not shown on your bank statements, proof of income - such as a wage slip if you are paid in cash, or letters for any benefits or pensions.
Calculator
APR 42.6%
I'd like to borrow (£200 - £7500)
For loans of £7,500+ please contact the office for latest rates.
Over a period of:
Representative example
- The interest rate you pay, and the amount you are able to borrow may vary depending on your saving and loan record with Sheffield Credit Union.
- All figures given on this website are for your general information only, and give a rough guide to loan repayments. Any statements on this website do not purport to be authoritative or legally binding.
- All information contained on this web page is correct at time of publishing. Sheffield Credit Union accepts no responsibility for errors due to changes in rates or offers which have occurred after this date. You are advised to check with our offices for up-to-date rates and offers.
- All repayment values are inclusive of interest.
All loans are provided subject to status and affordability and in accordance with our Lending Policy and loan product Terms & Conditions. Please be aware that you may pay more interest and be subject to additional charges if your loan repayments are not received on time. Repayments are reported to Credit Reference Agencies including Experian which could affect your credit record if you do not keep up to date with your repayments.