Comparing types of credit
If you’re thinking about financing your work, it’s worth knowing that not every type of credit gives you the same protections.
Take a look at our quick guide to see how point of sale finance, personal loans, credit cards and secured loans differ.
Key: Yes No Depends on the lender or product
| Feature | Point of sale finance | Personal loan | Credit card | Secured loan |
|---|---|---|---|---|
| Applying | ||||
| Can be arranged through Phoenix | Yes | Yes | No | Yes |
| Simple application, with no property valuation or documentsMore info (note 1) | Yes | Yes | Yes | No |
| Consumer protection | ||||
| Regulated by the FCA, with access to the Financial Ombudsman Service | Yes | Yes | Yes | Yes |
| Trader is only paid once you confirm the work is completeMore info (note 2) | Yes | No | No | No |
| Section 75 protection on purchasesMore info (note 3) | Yes | No | Yes | No |
| 14-day right to withdraw after signingMore info (note 4) | Yes | Yes | Yes | No |
| Right to repay earlyMore info (note 5) | Yes | Yes | Yes | Depends on the lender or product |
| Your home is not used as security | Yes | Yes | Yes | No |
| Interest rate | ||||
| Rate fixed for the whole term | Yes | Yes | No | Depends on the lender or product |
| Term length | ||||
| Fixed end date | Yes | Yes | No | Yes |
| Typical termMore info (note 6) | 1–10 years | 1–7 years | No set term | 3–25 years |
Why choose point of sale finance through Phoenix
- Your trader is paid when the work is done. Your trader will only be paid once you confirm the work is complete. A deposit or stage payment may be paid earlier, as set out in your agreement.
- Extra protection if something goes wrong. Section 75 can make the lender jointly responsible, which gives you added protection should something go wrong with your installation. Just contact us first and we’ll help. A personal or secured loan arranged by yourself outside of Phoenix doesn’t give you this protection.
- Support from start to finish. Our team stays with you from application to completion, including keeping in touch with you and your trader while the work is carried out.
- A straightforward application. Applying is simple, with a clear, hassle-free process from start to finish.
We also arrange personal and secured loans. With these, the money is paid to you and you pay your trader directly, so the protections above do not apply.
Notes
- Secured loans need more paperwork, usually including a property valuation and details of your mortgage, so they take longer to arrange. Your home may be repossessed if you do not keep up repayments on a secured loan.
- Your trader will be paid once you sign to confirm the work is complete. Some traders take a deposit or stage payment earlier, so check your agreement. With personal loans, secured loans and credit cards, the money is paid to you and you pay the trader yourself, so Phoenix does not control the payment.
- Section 75 makes the lender jointly responsible with your trader for purchases, with a cash price over £100 and up to £30,000. Above £30,000 (if you borrow max £60,260) Section 75A may help if the trader doesn’t put things right. These rights only apply to regulated credit. If something goes wrong, contact Phoenix first and we will help you, including with any claim to your lender.
- Secured loans do not have a 14-day withdrawal right after signing. Instead, you have at least 7 days to consider the offer before you are committed.
- Lenders may make a charge if you repay early. For loans, point of sale finance and credit cards this is limited by law. Secured loans can carry higher early repayment charges.
- Typical ranges across lenders. The term you are offered depends on the lender, the amount you borrow and your circumstances.
This table compares the general features of each type of credit. It is not a recommendation, and features vary between lenders and products. We will explain the features of any specific product before you apply.