Barclays is the subsidiary of the well-known banking powerhouse headquartered in London. Unlike its parent company, Barclays US does have a branch presence, but borrowers can take advantage of Barclays services completely online.
Barclays offers several financial products in addition to personal loans, including high-yield savings accounts, Certificates of Deposits (CDs), and credit cards.
In this review:
- Applying for a Barclays Personal Loan
- Barclays Loan Rates, Terms, Fees, and Limits
- Benefits of a Barclays Personal Loan
- Downsides of a Barclays Personal Loan
Applying for a Barclays Personal Loan
Barclays personal loans can be used for a variety of reasons, including financing major purchases, weddings, vacations, medical expenses, home improvements, and credit card debt consolidation.
Although Barclays does not provide any specific eligibility qualifications, borrowers generally have good or excellent credit as demonstrated through a history of timely payments and responsible debt management on their credit report.
To find out if you’re eligible for a loan through Barclays, you can complete the online application, after which you will receive a rate quote based on your desired loan amount and the information pulled from a soft credit inquiry.
The application process takes place entirely online. Here’s a quick overview of the simple steps you’ll need to take:
- Enter your desired loan amount, the purpose of the loan, and some basic personal information (including your Social Security number and birth date). Completing this step will result in a soft credit inquiry, which will not impact your credit; however, a hard inquiry will be performed after you submit the formal loan application.
- Select your loan term to reveal your personalized rate quote.
- If you are satisfied with your loan offer, complete and submit the official loan application. At this time, you will be notified of any documentation requirements that are necessary to formally evaluate your application.
After the application process is complete and you receive approval, Barclays Bank will distribute the funds within what it calls a “few business days.” Funds can be deposited in a U.S. bank account, or, if using the loan for credit card consolidation, can be sent directly to issuers to pay off your credit card balances.
Barclays Loan Rates, Terms, Fees, and Limits
- Rates: Annual percentage rates from 5.74% to 20.99%
- Terms: 36, 48, or 60 months
- Fees: No origination fees, late fees, or prepayment penalties
- Limits: Loan amounts range from $5,000 to $35,000
Benefits of a Barclays Personal Loan
There are numerous benefits associated with a Barclays personal loan compared to similar products available in the online personal loan marketplace.
Low Interest Rates
With competitive rates as low as 5.74%, Barclays personal loans can be more affordable than those offered by competitors.
It’s common for lenders to advertise “no fee” personal loans, but typically this refers to loan origination fees and prepayment penalties. Barclays, on the other hand, takes a true fee-free stance by eliminating late fees. Customers who miss a loan payment will receive an email update but won’t see a late fee on their account statements.
This is a real benefit for borrowers who unintentionally miss a monthly payment or two; however, it’s important to note that interest will continue to accrue and your credit rating could still be affected.
Barclays also allows borrowers to select their due dates if they aren’t happy with the one provided. This is beneficial for borrowers who need the flexibility to manage other monthly financial obligations.
Barclays Bank offers an easy-to-use online account center that allows borrowers to manage and pay their loans as well as view transaction history and take advantage of tools and resources.
Downsides of a Barclays Personal Loan
Though a Barclays personal loan may be beneficial for many borrowers, there are some downsides that should be considered.
Limited Customer Service Options
While Barclays does offer a customer service line, and reps are quick to answer and field basic questions, the majority of the customer experience takes place online. Unfortunately, despite a digitally-centered loan experience, Barclays does not offer an online chat option and customers can’t use email to engage with customer service.
The only other communication option, aside from the telephone, is via snail mail.
Lack of Transparency
Another potential downside is the lack of transparency, particularly as it relates to eligibility and loan funding.
While many lenders offer at least some insight into their basic loan requirements, Barclays is pretty vague when it comes to eligibility. The lender does not include a list of qualifications on its website, and a call to customer service will yield similar results.
Similarly, the time to funding also remains relatively vague, as Barclays limits the answer to “a few days.” For borrowers who aren’t in a hurry, this may not be a big deal, but for those who need funds fast for emergency purposes, this can be problematic.
>> Read More: Should you use a personal loan in an emergency?
Although Barclay does not provide any information about personal loan eligibility, borrowers typically have good to excellent credit and demonstrate a history of responsible debt manageable (e.g., timely payments, low balances, etc.). For that reason, borrowers with average or below-average credit may not be eligible for a Barclays personal loan.
>> Read More: Personal loans for bad credit
If you have a good credit score and you’re in the market for a personal loan, you may want to check out Barclays. With interest rates as low as 5.74% and no fees, a personal loan through this lender can be quite affordable. Since rate quotes are based on a soft-credit inquiry, you won’t have to worry about dinging your credit score to comparison shop.
However, if you’re looking for a more personalized experience or need cash fast, Barclays may not be the lender for you. The same is true for borrowers who have spotty credit histories. Be sure to compare the best personal loans on the market if you don’t think a Barclays personal loan is right for you.