If you’re in the market for a personal loan, perhaps to fund some home improvements or buy a new car, take a look at this offer from MoneySuperMarket and M&S Bank.
Anyone successfully applying for a personal loan with M&S Bank via MoneySuperMarket or MoneySavingExpert before December 4 will receive a £40 M&S gift card. T&Cs apply.
To qualify for your gift card, your loan application must first be accepted, and you’ll need to have made your first loan repayment before May 31, 2016.
Once you’ve made your first repayment, your gift card will be sent out within 60 days, and no later than June 17, 2016.
This offer applies across all M&S loans.
Is this for you?
If you’re a keen M&S shopper, the £40 gift card offer is likely to be an attractive incentive.
But ultimately, whether this offer is right for you will depend on how much you need to borrow.
If you’re looking for a medium sized loan of between £7,500 and £15,000, M&S Bank offers one of the most competitive rates at 3.5% APR representative, repaid over one to seven years.
The only bank to beat this rate is Sainsbury’s Bank, which offers 3.4% APR representative on the same borrowing size. However, this must be repaid over a shorter period of one to three years and you’ll need a Nectar card to qualify (although you can easily register for a card online or in Sainsbury’s stores).
If you don’t have a Nectar card, or need to repay your loan over three to five years, the rate rises to 3.5% APR representative – the same rate offered by M&S Bank.
M&S also offers a competitive 4.5% APR representative on sums of between £5,000 and £7,499, repaid over one to seven years.
But be aware this rate can be beaten by Clydesdale Bank’s 4.3% APR representative on borrowing of the same size, repaid over a slightly shorter one to five years. Meanwhile, if you’re looking to borrow more than £15,000, M&S’ loan rates are not so competitive, so you’ll be better off looking elsewhere.
For example, on borrowing of between £15,001 and £25,000, repaid over one to five years, you’ll pay a fairly hefty 6.8% APR representative with M&S (or 6.7% APR representative if you’re an existing M&S Bank customer).
What makes it special?
If you’re looking to borrow between £7,500 and £15,000, M&S Bank offers a competitive deal.
And the £40 gift card is an added bonus.
Watch out for
As mentioned, to qualify for the £40 gift card you must apply for your M&S loan through MoneySuperMarket or MoneySavingExpert by December 4.
And although M&S offers one of the top loan rates for sums of between £7,500 and £15,000, remember that for borrowing of less than £7,500 and, in particular, more than £15,000, better rates are available from other lenders.
Bear in mind too that the best rates are reserved for those with a top-notch credit rating. If you haven’t checked your credit file for a while, head over to our credit monitoring channel.
It is also worth using our Eligibility Checker tool which will show you how likely you are to be accepted for certain loans, without leaving a mark on your credit file.
What else is worth a look?
If you’re looking to borrow a fairly small sum of money, it could be cheaper to use a 0% purchase credit card instead.
The Post Office Matched credit card, for example, offers 0% on purchases for 27 months, so long as you spend on your card within the first three months.
This means you can spread the cost of your borrowing over more than two years, without worrying about interest stacking up.
Just be sure to clear your balance before the 27 months are up, as the rate is then 18.9% APR (variable)*.
You can read more about the card here.
*Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative rate will be 18.9% APR (variable).
All credit cards and loans are subject to status and terms and conditions. Over 18s, UK residents only. Terms and conditions apply. See MoneySuperMarket.com for further information.