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When you’re pre-approved, the loan amount, duration and interest rate are all confirmed
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The overall cost of loans depends on the following factors:
How long you borrow for – you can specify the term in your application
How much interest you’ll pay – this will be set by your lender based on your credit score
For small-sized loans, such as a £1,000 loan you should expect to pay a higher interest rate compared to larger loans. This is because small and short-term loans tend to cost more for lenders to provide.
Our loan calculator can help you work out what a small loan might cost.
MoneySuperMarket data from September 2024 indicates that the average APR for someone taking out a loan between £1,000 and £3,000 is 41.9%, with a typical loan term of 2 years. Here’s what that would cost:
Loan Details | Amount |
|---|---|
Loan amount | £1,000 |
APR | 41.9% |
Monthly payment | £62.22 |
Total interest paid | £493.24 |
Total Repayment amount | £1,493.24 |
When you apply for a loan, it’s not always clear what deal you’ll be offered or whether you’ll be accepted. But when you’re pre-approved for a loan, you know the deal you see is the deal you’ll get – you’ll know where you stand, with information that will help you make the right choice.
When you’re pre-approved, the loan amount, duration and interest rate are all confirmed
When you know what you’ll be able to borrow and how much it will cost, you can choose a loan that’s right for you
This helps protect your credit score as you're less likely to be rejected when you apply
Before lenders offer loans, they consider your personal circumstances, like your outgoings, income, and previous borrowing history. For a successful loan application, consider the following:
Lenders often require you to:
Be over 18
A UK resident
If you don't meet this criteria, lenders are very unlikely to enter a loan agreement with you.
Every time you apply online for a form of lending, like credit cards, mortgages, or loans, the lender will perform a 'hard credit check' which shows up on your credit file.
If you have multiple hard checks over a short period of time, this is a red flag to lenders and may reject your application.
We recommend using a loan eligibility checker to perform a soft search and find lenders where you have a higher chance of being approved.
Lenders will check your credit file, so before you start making applications you should review your report and address any errors before applying, including:
Existing credit agreements
Your financial links with other people (including ex-partners)
Missed payments
Beyond errors, check you're registered on the electoral roll and take steps to improve your credit score - it could make a big difference to your monthly repayments and wider loan eligiblity.
Even if you’ve struggled with debts in the past and have a low credit score it should still be possible to find a £1,000 loan. But you may be offered:
Higher interest rates or APR
A smaller loan amount
There are specialist lenders who offer loans to those with a less than perfect credit history. But for a £1000 loan for poor credit expect to pay higher interest rates.
Representative 29.9% APR
We’re here to help you find the right small loan for your needs
We’ll ask you a few questions about yourself and what you need the debt consolidation loan for. Then we’ll carry out a ‘soft search’ which won’t hurt your credit score.
You see the key information upfront straightaway, such as the interest rate and monthly repayment amounts, so you can easily compare £1,000 loans.
Good news: when you compare loans with MoneySuperMarket, you don't have to worry about hurting your credit score as we'll only carry out a soft search.
There are different types of loan available when you want to borrow £1,000. These include:
You don’t need to put any assets down as security and rates can be competitive, but you may need a good credit score to be eligible
You’ll need a friend or family member (guarantor) to be jointly liable for your loan. An option if your credit rating is low
Designed for short-term cash shortages and often known as emergency loans. Tread with caution as rates and fees can be high
Compared to other forms of credit, such as credit cards, a small loan of £1,000 can be a cost-effective and comparatively cheap way to borrow. For that reason, it could be a viable option for funding emergency expenses, for instance car repairs or new household appliances. As with all loans, though, you want to find the best deal. So be sure to try our free-to-use eligibility checker and look closely at our comparison tables, so you get the right loan at the right price.
Kara Gammell Personal Finance Expert
Find the right loan for you and see which rates you’ll be guaranteed to get.
Tell us a little about yourself, your finances and the loan you want
We’ll search through loans from a wide range of lenders on the market
You’ll be able to sort loans by the overall cost and the likelihood you’ll be accepted
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
If you’re looking for more information about loans, you’ve come to the right place. We have many guides you can read to help you get to grips with loans.
APR or Annual Percentage Rate is the interest rate at which you pay back money you’ve borrowed. It takes into account the actual interest rate you pay, plus any other fees or charges involved in the deal, to give you a more complete picture of what your loan will cost.
When you see a rate advertised as the representative APR, this means the lender is required to offer this rate to at least 51% of applicants – however it doesn’t mean you’re guaranteed to receive this interest rate yourself. You could be offered a higher or lower interest rate than those advertised. The APR you’ll be offered by a lender will be primarily based on your financial circumstances and your credit score.
A soft-search or soft-application is a way of finding out where you stand in terms of getting a loan without leaving a mark on your credit report. It’s a useful way of finding a loan you’ll be eligible for without harming your chances of being accepted.
Once you’ve been approved for a loan, depending on your provider, you could receive the funds into your bank account very quickly – this could be the next day, for example, or within the next week or two. If you’ve applied by phone or post it may take slightly longer. Things can also take a bit longer if your application or your financial circumstances are more complicated.
Typically most lenders will allow you to pay off part or all of your loan early, although there may be an early repayment charge. It’s best to check what this charge might be before you apply for the loan – if you think you may want to redeem early.
Depending on your repayment terms, missing loan repayments can mean extra charges and interest will be applied by your lender – this could increase your debt burden and it could also have a negative effect on your credit score. If you’re struggling or you know you might not be able to afford your repayments speak to your lender immediately to explain the situation and work out a solution.
It is possible to get a £1,000 loan without a guarantor if you meet the lender’s criteria. But in some cases, if you have a history of bad credit, the interest rates offered may be quite high. A guarantor loan is an option to consider for those who need a loan but have poor credit.
You can search and compare different loan deals on MoneySuperMarket and it will not affect your credit score in any way. But once you make a formal application for any loan in the UK the lender will do a credit check. This is to safeguard that the loan is suitable for you and affordable.
You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.
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You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.
