First Time Loans
Taking out a loan for the first time can feel like a big step, so we weren't surprised to find out that when people take a loan, they had a big reason for it
The big reasons for taking out a first time loan
31% took a loan to buy a car. Spreading the cost of a big purchase, like a car, gives you the chance to buy your car upfront and pay it off in instalments.
27% took a loan to consolidate debt. Depending on your circumstances a debt consolidation loan could be a way to simplify your outgoings and save money on interest or other charges.
55% of parents with a child aged 4 and under, took out their first ever loan since having a child to help with family finances.
*Survey conducted by YouGov Plc. Sample was 4,318 adults (aged 18+). Fieldwork was undertaken between 3rd - 8th August 2022.
Personal loans and cost of living
39% of respondents said the cost of living squeeze has influenced their decision to take out a personal loan.
While personal loans can be useful given the right circumstances, the decision to take one out during the cost of living squeeze should be considered. If you're struggling to pay your existing debts, think carefully about taking on any extra borrowing.
To help you make an informed decision, and reach out if needed, you can find support on your application.
Things to consider
Whether you can afford your monthly repayments is an important thing to think about before deciding to take out a loan. Almost 2/3 of UK adults (58%) felt repayment amounts were a top priority when taking out their first loan.
This tells you how long you'll be paying it back for, which is very important if you think your finances might change in the future. The public agreed - almost half (48%) felt loan duration was a key consideration for taking out their first loan.
3Fees and charges
Some loans come with fees or charges that can add to the total cost. Even though it’s important to know how much you’re paying, only 1/5 (18%) of the people we surveyed considered fees and charges when taking out a first time loan.
The interest rate you're offered will have a big impact on how much you pay for your loan overall. 18% of the people we surveyed said 'high interest rates' might prevent them from getting a personal loan in the future. See how much you might pay with our loan calculator.
Loans Eligibility Explained
Before applying you'll need to:
- Be aged between 18 and 74 and aged under 75 at the end of your loan termBe aged between 18 and 74 and aged under 75 at the end of your loan term
- Be in employment with no probationary period, or have a regular income e.g. pensionBe in employment with no probationary period, or have a regular income e.g. pension
- Have lived in the UK for at least 3 yearsHave lived in the UK for at least 3 years
- Have a UK personal current accountHave a UK personal current account
Did you know?
We will also check whether it's likely you'll be able to repay your loan, using information about your incomings, outgoings and credit score.
You can check your eligibility for a personal loan in a way that won't impact your credit score? Find out more with our Loans Eligibility Checker
Thinking about taking out a loan?
Find out how much your repayments might be and how much interest you could end up paying with our loan calculator. 5.9% APR representative on loans of £7,500-£19,999 over 1 to 5 years.
Helping you with a first time loan
Apply for a first time loan with Tesco Bank is straightforward and easy. If you apply online, we try to let you know right away if you've been successful.
Sometimes we need a little more information from you and will ask you to send it to us. Once you've been approved, we'll use Faster Payments to send the money direct to your bank account - normally within 48 hours.
Loans are subject to status.