Compare loans
Compare loans
Taking out a loan could be the right choice for you if you need help financially for a specific reason – whether that’s buying a new car, making some home improvements or dealing with existing debt.
MoneySuperMarket helps find the right loan for you, and our eligibility checker shows you your chance of being accepted for loans as well as the guaranteed rate. This way you can weigh up the facts and decide which deal to go for.
MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders.
You must be 18 or over and a UK resident.
Is a £5,000 loan the best option for me?
Is a £5,000 loan the best option for me?
Whether you have your eye on a new set of wheels or home extension, or you want to pay off some or all of your outstanding debt, a £5,000 loan could be the right amount for you.
Over 80% of searches for £5,000 loans on MoneySuperMarket were:
- To finance a car (29%)
- To pay for home improvements (27%)
- To consolidate debts (25%)*
However you should be certain a loan is what you need, as with any kind of borrowing there is a risk that you could build up debts if you can’t pay off what you owe. Make sure you know how much you can afford to pay each month by understanding how much your £5,000 loan will cost.
How much will a £5,000 loan cost?
How much will a £5,000 loan cost?
The overall cost of your £5,000 loan will depend on the following:
- How long you’re borrowing for – you can specify this in your application
- How much interest you’re paying – this will be set by your lender based on your individual circumstances
Longer terms usually have lower monthly repayments, but you’ll end up paying more overall in interest. For example, see the table below:
| Loan amount | Loan term | Interest rate | Monthly repayments | Total repaid | Loan cost |
|---|---|---|---|---|---|
| £5,000 | One year | 4.1% | £425.81 | £5,109.68 | £109.68 |
| £5,000 | One year | 9.5% | £437.51 | £5,250.15 | £250.15 |
| £5,000 | Five years | 4.1% | £92.14 | £5,528.33 | £528.33 |
| £5,000 | Five years | 9.5% | £104.06 | £6,243.51 | £1,243.51 |
These rates were chosen for illustration purposes and are not based on any products available with MoneySuperMarket.
Calculations were made using MoneySuperMarket’s loan calculator.
How long will it take to repay the loan?
How long will it take to repay the loan?
In your application you’ll be able to specify how long you’d like to borrow £5,000 over. Be sure to pick a term length you’ll be able to manage financially – you might face late payment fees if you can’t make your repayments on time.
Over a third of people look to take out £5,000 over a five year term than any other term length – while only 3% of people looked to take out a £5,000 loan over one year.*
*MoneySuperMarket data based on loans for £5,000 searched for between January and June 2020, accurate as of July 2020.
What type of £5,000 loan can I get?
What type of £5,000 loan can I get?
There are a number of different loans available if you want to borrow £5,000, but the type you’re eligible
for will depend on your credit history and financial circumstances.
Personal loan
Personal loans, sometimes referred to as unsecured loans, are when you borrow a set amount over a set period of time and make set monthly repayments, including added interest. The loan won’t be tied to any of your assets
Secured loan
Secured loans are tied to an asset, such as your home, car or another valuable possession. These may also lower interest rates compared to unsecured loans – but if you can’t make your repayments your home, or whichever asset the loan is secured against, will be at risk of seizure
Bad credit loans
Bad credit loans are designed for people with poor or limited credit, and they usually offer lower borrowing limits and higher interest rates than personal loans. Keep in mind if you have a poor credit history £5,000 loans may not always be available
Guarantor loans
When you take out a guarantor loan, it means someone else, normally a family member or close friend, has agreed to make your repayments should you not be able to. These are also an option geared towards those with poor or limited credit, as the guarantor acts as a safety net for the lender
How to compare loans with MoneySuperMarket
How to compare loans with MoneySuperMarket
Finding the right loan with MoneySuperMarket is quick and easy:
Tell us about yourself
We’ll check for loans
Choose your loan
We compare offers from a wide range of lenders from across the market
We work with over 40 loan providers including most of the big brands to help you borrow the money you need.
See the loan rates you are guaranteed to get
See the loan rates you are guaranteed to get
Our eligibility checker shows you the loan rates you’re guaranteed, helping you protect your credit score and apply in confidence.
Accurate results
We use a range of factors to find the rates
you’re most likely to be approved for, including your
employment status and credit history
Apply with confidence
You’ll see your eligibility before you apply,
so you can be confident you won’t be turned
down – protecting your credit rating
Guaranteed rates
You’ll also see which rates are guaranteed,
so you know what you’re getting and that there
aren’t any nasty surprises down the line
What does APR mean?
It is up to you to choose a guarantor, but it should be someone who you trust – such as a close friend or family member. In order to qualify as a guarantor, they’ll need to meet the following criteria:
- They must be at least 18 – or in some cases 21
- They must be in full-time employment
You won’t be able to use your spouse or someone with whom you’re financially linked – for example, anyone with whom you have a joint bank account or mortgage.
What happens if I’m rejected for a £5,000 loan?
If your £5,000 loan application is rejected this will likely leave a mark on your credit report – your overall credit score will probably fall, which may make it harder to apply for a loan or credit in the future. However there are other ways you can improve your score, giving you a better chance when you do decide to apply.
What is a soft search?
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.
What happens if I miss repayments on a £5,000 loan?
Missing repayments can mean you might be fined by your lender, and it could also end any low or zero interest incentives you have. It may even lead to a hike in the interest rate you’ll make future repayments at.
What is a repayment holiday?
A repayment holiday is when you don’t have to make any loan repayments for a certain period of time that you’ve agreed with your lender. They’re generally good for when you’ve had a temporary change of circumstances, such as unemployment, maternity, or unexpected expenditures.
Can I pay my £5,000 loan off early?
You’ll normally be able to pay off all or part of your loan early, though some lenders may have an early payment charge.
What if I’m struggling to repay my £5,000 loan?
If you’re struggling with your finances and you think you might not be able to make your repayments, you should call your lender as soon as possible – they may be able to help you work out an easier repayment plan or a repayment holiday. Not letting your bank know could mean you’ll be penalised for missing any payments.
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We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.