Good for: Debt consolidation, Good credit
In June 2019, Barclays announced it would pause offering personal loans. The loan will be available only to pre-qualified customers for a few months before it is no longer offered, says Barclays spokesman George Caudill.
For Barclays customers who receive pre-qualification offers, the loan may be a good fit if you:
- Have good or excellent credit. Barclays didn’t specify a minimum score requirement, but the bank says it’s targeting consumers with good and excellent credit profiles who have experience with credit. Only pre-qualified customers who receive an offer in the mail can apply for the loan.
- Want to consolidate credit card debt. The bank can send personal loan funds directly to up to five different credit card accounts.
Barclays loan rates and terms
Loan amounts $5,000 - $35,000
Typical APR 5.74% - 20.99%
Origination fee None
Time to funding A few business days
Repayments Monthly over 36 to 60 months
Soft credit check? Yes
How to qualify Best for Borrowers with good or excellent credit, debt consolidation
Barclays personal loan review
To review Barclays, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
Barclays, a British bank, has offered personal loans in the U.K. for decades. It has an online-only operation in the U.S. that includes savings accounts and certificates of deposit. The bank ran an invitation-only pilot program for personal loans in the U.S. before making them publicly available in October 2018.
In the pilot program, 60% of customers used the loan to consolidate debt, says Ben Harvey, Barclays U.S. head of consumer lending and channels, digital consumer bank.
That’s why Barclays — along with a handful of other personal loan lenders — allows borrowers to directly pay off creditors with the loan proceeds. Sending money straight to your creditors increases your chances of successfully paying off debt instead of using the funds for another expense.
No fees and flexibility: Like some of its competitors that serve the good-credit market, Barclays does not charge origination or late fees. Late payments accrue interest, and all payments — whether on-time or late — are reported to the three major credit bureaus. Barclays also lets borrowers choose their payment date on approval and change it once every 12 months if required.
Customer service: Barclays has a U.S. phone number and mailing address for customer service. The company says it has agents in the U.S. to answer customer questions about the application process. The bank doesn’t have a mobile app, but says its application and servicing website is mobile-optimized.
Loan example: For a borrower with excellent credit, a $10,000 personal loan with a repayment term of 24 months at 13.9% APR would carry monthly payments of $480, according to NerdWallet’s personal loan calculator.
How Barclays compares
Barclays personal loan rates are slightly lower than those of other lenders that accept high credit scores and target debt consolidation borrowers, such as Marcus by Goldman Sachs and Discover. Marcus doesn’t have the direct pay option, but it allows for greater flexibility while applying for a loan.
How to apply for a Barclays loan
You can apply on Barclays’ website by providing your name, address, Social Security number and other details.
NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.
Before you shop for a personal loan:
- Learn how personal loans work
- Boost your chances of getting approved
- 4 steps to pre-qualify for a personal loan
NerdWallet’s ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.