Quick access to money: Some purchases are essential, even if you can’t yet afford them. Loans help you cover the cost in a way that works for you.
Simple: With only one monthly payment to make, loans are easy to manage. This makes them ideal for debt consolidation and general borrowing alike.
Flexible: Loans allow you to choose how much to borrow and for how long. This gives you the freedom to tailor your borrowing to your budget.
What can I use a personal loan for?
Personal loans can be used for any big purchase you need to make but can’t afford to pay for immediately.
They could also be used to consolidate your debts into a more manageable monthly payment.
They’re commonly take out to cover:
What else do I need to know about before I apply?
There are a few things to be aware of before applying for a loan:
Annual percentage rate, or APR, is the total amount of interest and other fees you’ll be charged on top of the amount you’re borrowing. For example, if a loan comes with a 15% APR, this means you’ll pay 15% of the amount you're borrowing on top that amount.
Hard credit checks
Once you’ve picked a lender to go with, you’ll be taken to their site to finish your application. At this point, they're likely to perform a hard credit check on you. This will appear on your credit report and can impact your credit score if you’re rejected.
Term and interest
The length of your loan is known as its ‘term’. The longer your term, the lower the interest rate you may be offered. But keep in mind that while 12% over 5 years might sound better than 15% over 2 years, the 12% offer would see you paying more in total.
What's the difference between a secured and an unsecured loans? Let's take a look.
What is a guarantor loan and is it right for you? Our guide explains everything you need to know.
Worried about getting a loan without a guarantor present? There may be other options for you.
Need to cover an unexpected bill? Short-term loans are one way of getting quick cash, but beware.
Spread the cost of your repayments over a longer period of time.