Should You Get an RBS Debt Consolidation Loan? A Closer Look

What Is An RBS Debt Consolidation Loan?

An RBS Debt Consolidation Loan from Royal Bank of Scotland is designed to streamline your finances. Imagine juggling multiple debts, such as credit card bills and personal loans. 

With this loan, you can combine all these debts into a single, manageable payment each month. It’s like putting all your debts into one convenient pot, making it easier to stay on top of your repayments.

Key Facts About the Loan

• Loan Amounts and APR – You can borrow between £7,500 to £14,950 at a representative APR of 7.1%. But, the rates can change based on how much you borrow and your situation.
• Repayment Terms – If your loan is between £1,000 and £7,450, you can pay it back over 1 to 5 years. For bigger loans up to £50,000, you can take up to 8 years.
• Representative Example – Let’s say you borrow £7,500. You might pay back £137.55 every month and a total of £8,253 at a 3.9% APR.

Am I Eligible For An RBS Debt Consolidation Loan?

To see if you can get this loan, you need to tick a few boxes:

• You need to be over 18 and live in the UK.
• You should have an RBS current account open for at least 3 months.
• You can’t have been declared bankrupt in the past 6 years.
• You shouldn’t have applied for another RBS personal loan in the last 28 days.

When you apply, be ready to share:

• Your RBS online banking info.
• Where you’ve lived for the last 3 years.
• Details about what you earn, spend, and your job.

Choosing a personal loan is a big decision. RBS advises looking at all your options and understanding your debts fully before you decide. 

RBS Debt Consolidation Loan Rates And Terms

The typical APR for loans between £7,500 and £14,950 is around 7.1%, but this could change depending on how much you borrow and your personal situation. 

You can choose from loans starting at £1,000 and going up to £50,000, which is great because it gives you a lot of flexibility to find what works best for you.

For smaller loans, up to £7,450, you can spread the payments over 1 to 5 years. If you’re borrowing more, between £7,500 and £50,000, you have the option to extend the repayment period up to 8 years. 

The interest rate might be different from the 7.1% APR, and it’s capped at 29.9%, so you won’t have to worry about sky-high rates.

When you apply, RBS will tell you how much you can borrow and what your rate will be, and this won’t affect your credit score. 

You can also use RBS’s handy loan calculator to forecast potential costs. And speak to an accredited debt counselor if you need help assessing alternatives to determine the optimal path forward.

Clearing the Jargon

APR, or Annual Percentage Rate, is the total cost of a loan, including the interest rate and any other fees, spread over each year.

APR Representative is the rate that at least 51% of borrowers receive when they take out a loan. This rate can vary based on individual credit scores and circumstances.

How To Apply For An RBS Debt Consolidation Loan

Applying for this loan is easy, especially if you’re already with RBS. Here’s how you do it:

• First log in to your RBS online banking
• In the ‘Our Products’ section, click on ‘Loans’. (This will take you back to the main loans page.)
• Click on ‘Apply for a loan’.
• Choose ‘Let’s start’ under the section that says ‘Ready to apply?’.

To apply, you must meet the eligibility criteria discussed above. Note that it’s a good idea to compare different ways to borrow money and make sure this loan is the right choice for you.

If you want to make better financial decisions, drop us a line. We’ll set up a free, no-obligation chat with an experienced loan advisor to provide you the right advice and debt solution.

Should I Choose An RBS Debt Consolidation Loan?

In general, this loan offers several advantages:

– Repayment Holiday. RBS offers a repayment holiday for up to the first three months, which can provide temporary financial relief.
– Loan Amount Range. Offers loans between £1,000 and £50,000, accommodating a wide range of debt consolidation needs.
– Simplified Payments. Consolidating multiple debts into a single loan can simplify your financial management.
– Avoid Secured Loan Risks. Unlike secured loans, this loan helps you avoid potential risks associated with home equity loans, while keeping your credit accounts active, which could positively impact your credit score.

However, there are also notable disadvantages:

– High Potential APR. The APR can be as high as 26.9%, depending on your credit history.
– Exclusivity to RBS Customers. Only available to existing RBS customers who have had an account for at least three months.
– Variable Rates. The interest rates offered are variable and could be higher than anticipated.
– Potential Additional Fees. There may be higher or additional fees associated with the loan​​.

The decision of whether to choose an RBS debt consolidation loan depends on your unique financial situation and needs.

If you’re an existing RBS customer and are comfortable with the potential for higher APR rates and terms, this loan could offer the convenience of consolidating your debts. The repayment holiday might also provide temporary relief.

However, it’s essential to consider the potential for a high APR and the fact that this loan is not available to non-RBS customers.

Before making a decision, it’s advisable to compare the RBS loan with other debt consolidation options available in the market to ensure you’re getting the best deal for your situation.

Consulting with independent debt charities in the UK can also provide valuable advice and alternatives tailored to your specific circumstances.

Remember, a debt consolidation loan is a tool to manage debt, but it doesn’t address the underlying spending habits that might have led to the debt in the first place.

Are RBS Debt Consolidation Loans Worth It?

When you’re thinking about getting a debt consolidation loan from the Royal Bank of Scotland (RBS), there are a few important things to consider.

First off, let’s talk about how customers generally view RBS. Their ratings on Trustpilot aren’t too great, with scores around 1.5 out of 5. 

This tells us that a lot of people aren’t too happy, especially with their customer service and how they handle business accounts. Not the best start, right?

But, it’s not all gloomy. RBS has been doing some positive stuff, like setting up funds to help communities struggling with the cost of living crisis. 

They’re putting in £160,000 for local charities and a bigger £5.7 million across the UK for various causes. This shows they’re not just about banking – they care about making a difference, too.

Now, when it comes to their loan services, they’re doing okay, but there’s room to get better. They’ve got a moderate rating for their personal loan services based on reviews. It’s not the highest rating, but it’s not the lowest either.

Another point to consider is the recent news about them closing 19 branches, which means they’re focusing more on online banking. This might be something to think about, especially if you like discussing your finances face-to-face.

Regarding their credibility, it’s worth mentioning that RBS, like all UK banks, is regulated by the Financial Conduct Authority (FCA). This means they have to stick to certain standards and rules, which is good for your peace of mind.

So, are RBS debt consolidation loans worth considering? Well, they might be an option for you, especially with their community-focused initiatives. 

But, given the mixed reviews and their shift to online banking, it’s probably a good idea to shop around a bit. 

Compare what other banks offer and see what fits your needs best. Remember, it’s about finding a loan that works for you, and feeling comfortable with the service you’ll get. Just take your time and choose what feels right.

Alternatives to Consider

While RBS provides an accessible debt consolidation option, it pays to weigh alternatives like:

• Credit cards with 0% balance transfer offers
• Fee-free debt management plans
• Debt relief order for those struggling severely

Each option has pros, cons and eligibility factors to consider with your specific financial situation. 

The Bottom Line

RBS debt consolidation loans simplify payments toward financial freedom. But convenience has a cost. 

Ensure you understand the interest rates and terms before committing to shift multiple obligations into one for optimal effect.

Consider all facets outlined here when weighing if consolidation with RBS fits into your broader debt payoff plans.

If you’re thinking about a debt consolidation loan, getting advice from a broker can be really useful. They’ll walk you through the different loan options, helping you choose one that fits your financial needs.

To get started, drop us a line. We will connect you to a broker who’ll help clarify your choices, ensuring you move forward with confidence.