Insights

1. Secured vs. Unsecured Loans

At Monixa, we specialise in unsecured loans that don't require collateral. Unlike secured loans (which use assets like your car as guarantee), our loans offer quicker access to £200 to £1,500 without risking your assets. While interest rates are higher, we provide transparent terms and flexible repayment options tailored to your pay schedule.

2. How to Avoid Loan Scams

It is important to be vigilant to protect yourself from loan scams. You should be wary of any provider that uses pressure tactics or presents vague terms. Never provide your personal details to anyone calling you claiming to be a lender or give out your bank details via SMS. Legitimate, FCA-regulated lenders will not charge upfront fees or guarantee loan approval before conducting proper assessments.

3. Illegal Money Lending

Illegal money lending, also known as dealing with a "loan shark," is a serious criminal offence. An illegal lender is not authorised by the FCA and may offer little to no paperwork, charge exorbitant interest, use threats and intimidation, or take personal items like your passport or bank card as security. If you believe you have been affected by illegal money lending, confidential help is available. Organisations like Stop Loan Sharks can provide specialist support and advice.

4. Smart Repayment Strategies

We recommend syncing repayments with your payday, setting payment reminders 3 days early, and temporarily reducing discretionary spending by £10-20/day if needed. Good news: we report positive repayment history to credit bureaus, so paying on time with us can actually help rebuild your credit score.

5. Borrowing Responsibly

The core principle of affordable lending is to only borrow what you need and repay comfortably. It is important to ensure that any lending is sustainable for you; you should avoid taking out a loan if you are unable to maintain your regular bills. Before applying, you can use our calculator to see exactly what your repayments would be.

6. Could You Be Missing Out on Unclaimed Benefits?

Every year in the UK, an estimated £23 billion of financial support goes unclaimed. This means many people are missing out on money they are entitled to, which could help ease financial pressure. Before borrowing, it is worth checking your eligibility for benefits. You can use a free and confidential benefits calculator, available on the Welcome to GOV.UK website or through trusted charities, to see what support you could be receiving.