Credit Jungle | Free Credit Scores, Cheap Loans & Debt Solutions | FAQs

A credit rating is a number derived from an analysis of a person's personal and credit information. The higher the rating the better the interest rate that will be offered to you.

The credit rating was developed by lenders who use the credit rating to evaluate the potential risk posed by lending money to an individual and used to define the rate of interest.

Lenders use credit ratings to decide who qualifies for a loan, at what interest rate and what credit limits. Knowing your credit rating can help you find the lender best suited to your situation who will provide the loan for you at the best rate for you.

A credit report contains all the detailed information in a person's credit file maintained by a credit bureau.

The data you provide and the credit data we are able to access is analysed and a credit rating produced. This is a number based on personal and credit data and commonly ranges between 450 and 950.

No, Credit Jungle is not a bureau or agency.

Your credit rating is determined by each credit bureau and may differ with each one. Ratings can vary from day to day dependant on your financial activity. This is why it is worth checking your rating on a regular basis.

We collect and store some basic consumer data about you when you register and use the site. More information can be found on our Privacy Policy.

No. Credit Jungle is providing this service on your behalf and so your credit rating will not be affected, even if you visit us on numerous occasions.

Unsecured loans are loans which do not demand any collateral. These loans are available in the range of £80 to £25000 with a repayment period of 1 month to 10 years.

The amount you can borrow depends on various factors like income, repayment ability and credit rating. Apply with us to find how much you qualify to borrow.

Loans can be taken over a range of periods between 1 month and 10 years. It all depends how much you borrow and how much you can afford to pay each month.

Obviously, you can use the money for whatever you like; buying a car, a holiday, to pay off existing debts or for home improvements.

All applications are dealt with in strictest confidence. Your details will remain entirely confidential and will not be forwarded to anyone without your prior permission.

For unsecured loans, you need to be in current employment, be at least 18 years old and have a current bank account.

Different lenders have different policy on early repayments. The lenders who accept early repayment will calculate the outstanding balance and a rebate is given on the outstanding interest in accordance with the Consumer Credit Act 1974.

A secured loan is secured on your property, so you may be worried about the risk involved. As simple as it sounds, you can't lose your home if you keep up the repayments.

There are many possible benefits to a secured loan, for example payment holidays (where you can stop making repayments for an agreed period). However the biggest benefit is cheaper borrowing.

With a secured loan, lenders are able to offer larger sums (depending on the value of your property). Secured loans can also be repaid over a longer term than unsecured loans, which can make the loan more affordable.

The paperwork involved is a lot less than for a remortgage - we do need you to prove your identity, address, and to sign a loan agreement and mortgage deed, but other than that the paperwork is usually minimal. Each case is different, so you will be talked through all the documents, and will be to ask any questions you may have.

Almost anything. Some lenders do restrict what you can use the money for (for example, timeshares or business purposes), or might insist that some of your existing credit is paid off so you can afford the payments - just say what you want the loan for and we'll try get you the right deal.

One of the commonest uses for a secured loan is to consolidate existing credit, especially expensive credit cards, for people who are struggling with their payments. Paying only the minimum credit card payment will mean you will take many years to pay them off, and pay hundreds, or even thousands, of pounds in interest charges - a secured loan can save you a lot of money over the years.

From 3 to 25 years.

Depending on how much you can afford in repayments, and how much equity there is in your property, anything from £5000 to £250,000, or more in some circumstances.

A convenience loan is a cash advance that solves temporary cash flow problems by bridging the gap between paydays. In many cases a convenience loan is a cheaper alternative for individuals who might otherwise be forced to pay high interest rates and pay costly bank penalties, unpaid bill charges and credit card charges.

A convenience loan is not a long term solution to ongoing financial problems. We strongly recommend against using it to help pay for regular credit commitments.

You can borrow any amount between £80 and £750 (first loan amount may be limited).

Your debit card is used to take repayment of your payday loan on your next payday.

The debit card is our preferred method of loan repayment. For those who do not have a debit card, some of our lenders offer a direct debit option.

Lenders use the debit card information on your current account to automatically debit your loan repayment on your specified due date.

The fee for a convenience loan is typically £25 for every £100 borrowed. For example, if you borrow £200 the total fee is £50.

The majority of our convenience loan providers will request the repayment of your loan on your next payday or an a date agreed by you and the lender.

If you can't repay the full amount of your loan on the due date, you can request a loan extension by contacting your lender's customer service team via phone or email, details of which will be on the agreement they send you.

The majority of our lender panel will allow you to extend your loan, however you must note that a convenience loan is only to tide you over and is not intended to be a long term provision. It is not in your best interest to keep rolling over your convenience loan for longer than three pay days.

Most customers can have funds paid into the account on the same day. However some banks take longer to clear their funds. In this case the funds should show as cleared within 24-48 hours.

Debt management is a flexible solution that gathers all of your unsecured debts together into a workable financial solution.

It is an informal arrangement between you and your creditors (the people you owe money to) and it allows you to repay balances at an amount that is more affordable to you. They generally allow all unsecured balances, like overdrafts, personal loans, store card and credit cards, to be gathered together into one single payment, which is then spread out over a longer payment term – thus making repayments easier.

A debt management plan allows you to take control of your finances, whilst still repaying debts but at a more affordable rate. How much you have available to repay to creditors is calculated, after your living costs and priority payments have been accounted for. You then pay this amount to the debt management company, and they distribute this amongst your creditors on a pro-rata basis. This means that all of your different debt repayments will be accounted for in the single monthly payment that you make to the debt management company.

You also don’t have to worry about phone calls and letters from your creditors, as the debt management company takes care of all correspondence and keep you up to date with any progress. Plus, they negotiate with your creditors to reduce or freeze interest and charges from being added to your accounts. Whilst they cannot guarantee that this will happen, a successful outcome can be usually achieved in most cases.

Anyone that is struggling to manage their current credit commitments can apply for a debt management plan. The term “struggling” typically means that you cannot afford the minimum contractual payment, once your priority payments (like mortgage/rent, utility bills, council tax etc) and general living costs have been accounted for. Living costs include travel to and from work, food, clothing and an allowance for telephones and satellite package etc, but doesn’t include unnecessary items like gym memberships, magazine subscriptions and other luxury items.

To qualify, you must also be struggling with unsecured consumer debts. If you have secured debts as well, like a mortgage, car hire purchase or a secured loan, we can make allowances for these items on your financial statement. We cannot include these secured debts on your plan, but we can allow you enough disposable income to repay these priority debts yourself.

Debt plans can be arranged from as low as £150 per month, based on what you can afford and depending on how much you owe.

Each plan is individual to each customer’s financial circumstances. Due to the fact you are paying less than the original contracted payment to each creditor, the term to repay the debt will be longer but the repayments are more affordable.

Thousands of debt plans are made each month, so your creditors are likely to have been through this process with many others. Based on our independent professional assessment and a carefully presented case we make an offer of a reduced payment to your creditors. However, whilst we make every effort to negotiate reduced payment terms and the lowering or freezing of interest on your behalf, your creditors are not obliged to accept.

You must not apply for any further credit and stop using any existing credit facilities that you may have. Your creditors would see this as fraud!

It is highly likely that your creditors would withdraw their support of your debt management plan and may commence court proceedings against you.

An individual voluntary arrangement (IVA) is a formal agreement between you and your creditors where you will come to an arrangement with people to whom you owe money. This arrangement will allow you to make reduced payments towards the total amount of your debt in order to pay off a percentage of what you owe. Generally, after 5 years your debt is classed as settled. Due to its formal nature, an IVA has to be set up by a licensed professional called an insolvency practitioner.

Any insolvent individual who cannot pay their debts can apply for an IVA as long as your disposable income is over £200. However if your income is primarily made up of benefits it is unlikely that your IVA will be accepted.

Debts are settled within a reasonable and fixed period of time (normally 5 years). Any interest and debt charges will be frozen and creditors will be prohibited from demanding additional payments.

You have an agreement with your creditors to make a single reduced payment each month. It lasts for a sensible period of time (normally 5 years). Once agreed, creditors are not allowed to add further interest or charges to your accounts by law. The agreement is fixed, meaning that creditors cannot randomly demand changes to it.

If you undertake an IVA, you will have to give up all your current credit (e.g. credit cards and store cards) and you will not be allowed to take additional unsecured borrowings until your IVA is completed. However you will be allowed to use prepaid cards.
The bottom line is that undertaking an IVA does not mean that you are “blacklisted” forever. Once it is complete your credit rating should repair fairly quickly.

Your current credit (e.g. credit cards and store cards) will be inactive and you will not be allowed to take additional unsecured borrowings until your IVA is completed. In fact, it is possible to take or change a mortgage even while you are still within an IVA but you will need to make sure you get the advice of your insolvency practitioner for this.

Under an IVA you cannot be forced to sell your property and therefore your home will not be at risk. What's the difference between an IVA and bankruptcy?

In bankruptcy all assets are held by the trustee, including your savings and insurance policies - and they are shared between creditors on a pro rata basis. With an IVA your Insolvency Practitioner can negotiate which assets are included in the agreement, which could mean the exclusion of your home, while with bankruptcy you are subject to numerous restrictions, such as not being able to borrow more than £500 without permission, until you are discharged.

In bankruptcy all assets are held by the trustee, including your savings and insurance policies - and they are shared between creditors on a pro rata basis. With an IVA your insolvency practitioner can negotiate which assets are included in the agreement, which could mean the exclusion of your home, while with bankruptcy you are subject to numerous restrictions, such as not being able to borrow more than £500 without permission, until you are discharged.

IVAs have benefits but they are not right for everyone - but they are a potentially good alternative to bankruptcy, especially if your job would be at risk by going bankrupt. You will need a safe job and a fairly high income that won't change during the term. Also bear in mind that your home can be repossessed if the IVA fails and your insolvency practitioner or creditors petition for bankruptcy. It might be necessary to remortgage or release equity, and your credit rating will be affected.