Aqua Loans Alternatives from £100 – £5,000

Updated: October 01, 2024 Author:

Quick Answer Aqua loans are offered to customers of the Aqua brand, the parent company of which is Newday Ltd. Interest rates may be higher or lower on Aqua Loans than Aqua Credit Card rates. 

Is Aqua Loans a legitimate company? 

Yes, Aqua Loans is a trading name of NewDay Ltd, which is the parent company of the Aqua Brand. They are registered with the FCA – reference number: 690292 and company number 07297722. 

Why did Aqua Loans contact me? 

If you get a mail letter (or any other correspondence) from Aqua Loans, it is likely an invitation for you to apply for their personal loans. Aqua loans are offered to holders of the Aqua Card, which is a credit builder credit card. 

Should I take out an Aqua Loan to pay My Aqua Credit Card? 

This depends largely on the interest rates being offered and your current credit card balance. The minimum you can borrow is £1,000 loans so if you only owe less than that, you’d be borrowing more than you need. That’s never a good idea because wherever you save spare cash, the interest rates on savings are never as high as the interest rates on credit. 

You might get 5% interest on savings, but you’d be paying upwards of 30% on credit. That’s because the average APR for bad credit is nearly always over 30% APR. Aqua Loans may offer APRs higher than 34.9% APR as the rate will be based on your risk score. It is possible to be quoted a higher APR on a personal loan despite always paying your credit card bill on time. 

Lenders pay close attention to individual circumstances, applications, and most importantly, your account management. If you use over 25% of your available credit limit on Aqua Card, it could be detrimental to your credit score. 

If the offered APR on an Aqua personal loan isn’t lower than the APR on the Aqua credit card rate, it doesn’t make financial sense to accept an Aqua Loan offer in order to pay off your Aqua Credit card. 

Will applying for an Aqua loan affect my credit score? 

An eligibility check won’t affect your scores, but an application to be considered for the loan amount you apply for will require a hard search to be run. The difference between an eligibility check and an application check is the same as a soft check vs a hard check on your credit files. Too many hard pulls (from applications) will negatively affect your credit score. 

What are some alternatives to Aqua Loans? 

There are a lot of companies offering personal loans to borrowers. You can always shop around for personal loans to determine your best options. BadCredit’s loan checker gives you several options to consider based on your personal profile and credit history. 

Should I accept the Aqua Loan offer? 

Only if you need to AND if the rates and other terms and conditions favour you. There’s no point taking out a loan for something you don’t need. Also, taking out a loan with unfavourable rates and conditions can lead to financial difficulties. Always consider the amounts you can comfortably afford to repay before accepting any form of credit.