Apply with confidence
When you’re pre-approved, the loan amount, duration and interest rate are all confirmed
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.
*Lowest rate for loans between £7.5k-£15k. Must be a Tesco Clubcard member. The rate you get will depend on your personal circumstances, such as your credit score, as well as the loan amount and term and may be different from this Representative APR. Rate accurate as of November 2024.
We work with a wide range of FCA-regulated providers, including award-winning direct UK lenders, to help you find the cheapest loan rates from brands you can trust.
Use our handy calculator tool to find out how much your monthly repayments could be, and how much you can afford to borrow
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A loan is a way of borrowing money over an agreed period with interest.
Loans are usually unsecured, which means you’re not putting your valuable possessions, such as your home or car, up as security or collateral against the debt. But this limits how much you can borrow – typically up to about £25,000.
Secured loans, otherwise known as 'homeowner loans', require an asset as collateral and are often for much larger sums relative to personal loans - up to £500,000 from some lenders.
Pick and apply online: Decide how much you want to borrow, if you want it unsecured or secured, and over what period. The lender will then run a credit check and decide whether to approve your application.
Your money is disbursed: Once approved, the money can hit your account in as little as two hours. You can use it to make that car purchase, pay for home improvements or whatever you'd like.
Pay it back over time: You’ll usually repay in monthly instalments across a period of between one and five years. You’ll pay back the amount borrowed plus the agreed interest.
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 toborrow 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
Your eligibility for a loan depends on several factors. Here's what to consider:
Your Credit History and Score: A higher credit score improves your chances. Check your credit report for errors and take steps to improve your score if needed.
Existing Debts: Lenders assess how much debt you already have. Reducing your existing debt can increase your affordability.
Age and Residency: You must be at least 18 years old and a UK resident.
Pre-Eligibility Checks: Use our soft search to see your chances of approval without affecting your credit score.
Securing a loan with a lower interest rate can save you money, but achieving this isn’t always quick or straightforward. Here are some practical ways to help make a loan more affordable:
Borrow over a longer period: Data from September 2024 shows that the average APR for a 1-year loan is 31.8%, compared to just 14.5% for a 5-year loan. While longer terms often come with lower APRs, remember that they also result in higher total interest payments over the life of the loan.
Improve your credit score: Enhancing your credit score can unlock better loan rates. Our MoneySuperMarket research indicates that registering on the electoral roll can boost your score by an average of 41 points. Additionally, correcting any errors on your credit report and paying bills on time are straightforward ways to improve your credit score.
Increase your income: While this isn’t always an immediate solution, our data shows that borrowers earning £30,000–£39,999 pay an average APR of 19.8%, compared to 22.9% for those earning £20,000–£29,999. If possible, taking on additional work or negotiating a pay rise can improve your chances of securing a better deal.
Compare loan providers: Shopping around and comparing loan options can help you find the most competitive rates. Our loan comparison can provide a clear overview of available deals tailored to your needs and credit profile.
Choose a secured loan: If you own a valuable asset like a car or property, you might consider a secured loan. These loans often come with lower interest rates since the lender has collateral. However, they carry the risk of losing the asset if repayments aren’t made.
Even though larger loans can carry smaller interest rates, you should always carefully consider the cost of the project you’re embarking on. After all, whether you’re getting hitched or paying down existing debts, it will all need repaying in the end. We’d recommend you have an up-to-date budget to hand, so you know what you can afford to repay before you start, and use free tools like our loan repayment calculator to estimate monthly repayments.
An unsecured loan, or personal loan means you don't need to use something you own as collateral. Lenders use your financial history to decide if you qualify and how much you can borrow - it helps if you have a good credit score and have kept up with debt repayments before.
With a secured loan or homeowner loan, you put up an asset - usually a property that you own or pay the mortgage on - as security. If you don’t keep up with the repayments, the lender can seize the asset – meaning you could lose your home.
Guarantor loans are another option if you have poor or limited credit. They work like a regular loan, except that you need a guarantor when you apply. This is someone (normally a family member) who promises to make your repayments if you miss any.
A bad credit loan is a personal loan designed for individuals with poor, weak, or no credit history. However, lenders view borrowers with low credit scores as higher risk, so bad credit loans typically come with higher interest rates and stricter terms.
A peer-to-peer lending scheme allows individuals to borrow money directly from other people via online platforms, bypassing traditional banks. Interest rates may be competitive, but loans are often subject to platform fees and the loan may have to be secured against collateral such as a house.
Many people use loans to pay for important life events and essential big-ticket expenses such as home improvements, a wedding or financing a car purchase, but before you apply for a loan, ask yourself:
Do I need it? If you’re using the loan to pay for something that’s not urgent, such as an expensive gift, then maybe consider if a loan is necessary
Can I afford the repayments? You must pay back your loan, which will be the loan amount plus the interest rate. You can use our loan calculator to get a rough idea of how much the loan will cost you.
Will I keep up with the repayments? If you’re unable to keep up or make late repayments, you’ll damage your credit score which will make it harder to borrow in the future
At the time of writing (December 2024), the Bank of England base rate stands at 4.75%, after the MPC opted for a quarter-point cut on 7th November 2024. Despite the cut, rates are still significantly higher than they were just a few years ago.
Higher interest rates make it more expensive to borrow but shopping around, considering specialist lenders, and improving your credit rating can all make the final loan rate cheaper.
Avoid borrowing money without thinking carefully whether you need it, and whether the cost of the loan is worth what you’re taking it out for.
For example, it’s probably not a good idea to take a loan out for everyday purchases – a credit card might be more suitable.
Work out how much you can afford to borrow and pay back before applying for a loan. This way you can look for loans in your borrowing range, giving yourself the best chance of being accepted as well as ensuring you don’t take on a financial commitment that you can’t afford – try our loan calculator for guidance.
If you're on a variable rate deal, repayments can change whenever the lender decides to change it – often lenders will use the Bank of England base rate as a guideline. While this means that your repayments could be less if the base rate falls, they could also go up if the rate rises, so consider if interest rate fluctuations are worth the risk before taking out a variable rate loan.
Loan sharks should always be avoided – they’re illegal, not regulated by any financial organisations, and they generally charge massively high interest rates. What’s more, if you aren’t able to repay them you may be pressured into borrowing even more money, which could lead to a spiral of debt.
Payday loans may be legitimate, but they can come with incredibly high interest rates sometimes reaching over 1000% - which could make even a small loan turn into a debt spiral. Learn more with our guide to payday loans.
Every application you make, just like credit applications, leaves a mark on your credit report.
Too many of these will give lenders the impression that you are desperate to take out a loan, which could imply that you’re struggling to manage your finances – as a result, lenders may be more reluctant to let you borrow from them in the future.
Use our eligibility checker to run a soft search and find lenders with a higher chance of acceptance, including preapproved.
As part of the loan application process, potential lenders will perform a credit check. Bad credit doesn’t mean you won’t be able to get a loan, however, it will make it harder to be approved and you may end up with a worse rate.
If you can, consult your credit report and take short-term steps to boost your credit score like registering to vote or addressing errors on your credit file.
If you're borrowing smaller amounts of money and can't dip into your savings, you might be better off with a credit card or an arranged overdraft.
To clear credit card balances, consider a balance transfer credit card.
To make a large purchase, consider a 0% interest credit card.
To clear an unarranged overdraft, consider a money transfer credit card.
To tide you over til next month, consider an arranged overdraft with your current account provider, or switch to an account with overdraft facilities.
You can use a loan for a range of purposes, including:
Found your dream car but don’t have the savings to buy it outright? A loan can help you enjoy your new wheels by spreading the cost of the car into manageable repayments.
Looking to make renovations to your house? From a new kitchen to a new bathroom, a home improvement loan can help fund the cost of home improvements.
A bridging loan can help you to buy a new property before you sell your current home, by ‘bridging’ the gap between sale and completion.
Finding one low interest rate loan for all your debts can bring the ease of having just one payment to deal with instead of different cards and loans on the go (where it may be easy to lose track and miss payments!).
Whether your holiday is abroad or in the UK, a holiday loan can help towards the cost of your next adventure if you don’t have the savings to help out.
While a wedding may be the best day of your life, it can also be an expensive one! A wedding loan can help manage the cost of your big day and minimise money worries.
A personal loan gives you access to cash at fairly short notice, with a fixed interest rate and fixed monthly payment
A loan can help you fund big-ticket purchases and spread your payments
Personal loans are generally a cheaper way to borrow than credit cards and other forms of credit
As long as you make your payments on time and in full, a personal loan can be a good way of building your credit rating
As with all forms of credit, if you miss repayments you can incur hefty fees
Taking out a loan can make it tempting to overspend and rack up debt
You may be able to get a credit card with a 0% introductory period instead, which would save you money
The loan rate you’re offered will depend on your unique circumstances and will take into account your credit score and annual income. However, to give you some indication of what terms you might get, here are the average APRs for various loan types as revealed by data from MoneySuperMarket in September 2024. This is based on the most popular amount borrowed for each category of loan.
Loan Purpose | Average APR |
|---|---|
Car Loan | 9.5% |
Home Improvement Loan | 12.3% |
Debt Consolidation Loan | 15.9% |
Wedding Loan | 17.5% |
Holiday Loan | 48.9% |
The amount you borrow depends on what you're using the loan for - here's what MoneySuperMarket customers borrow, on average, for anything from financing home improvement to taking out a car loan.
When you apply for a loan, the lender will use your credit rating to decide whether to accept you and what rates to offer you.
Find out where you stand with our free Credit Score tool
Take steps to improve your credit score, or fix errors on your credit file
Secure better rates and preapproved deals
As of November 2024, the base rate stands at 4.75%, after the Bank of England voted for a quarter-point cut on 7th November. Further cuts to the Bank Rate are now expected next year. This rate influences how much it costs banks to borrow money, and in turn, it affects the interest rates offered on loans to consumers. When the base rate is reduced, lenders often lower their Annual Percentage Rates (APRs) on loans, making borrowing more affordable.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments. Therefore, it's important to compare loan offers from different lenders to ensure you benefit from the most competitive APRs in the market.
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.
We’re here to help find the right loan for you, so we’ll tell you which rates you’re 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.
We’re aware that some fraudsters are trying to use the MoneySuperMarket brand to trick consumers into handing over money or financial details, by offering fake loans with eye-catching interest rates.
The best way to stop these scams is to report them.
If you think you’ve been contacted by a fraudster, please stop all communication with them and report it to Action Fraud.
If it’s someone impersonating MoneySuperMarket, please contact our customer services team
If you're asked to pay an up-front fee for a loan - it's likely to be a scam
Check out our tips on how to keep you and your family safe from scams.
SuperSaveClub is our rewards club exclusively for MoneySuperMarket customers – you can find out more about SuperSaveClub here.
When you take out a loan from a selected lender, you’ll be eligible for SuperSaveClub rewards. At the moment, not all lenders are part of our rewards programme. When you search for a loan with us, you’ll be able to see which lenders are part of the programme, as the loans that come with a SuperSaveClub reward will be highlighted in your results.
The lenders who are currently signed up to SuperSaveClub are:
118 118 Money
Abound
Admiral
Asda
Bamboo
Bank of Scotland car finance
Be Savvi
Churchill
Everyday Loans
Finio
Fluro
Halifax car finance
Halifax loans
Hastings Direct
John Lewis Finance
Lendable
Lloyds bank car finance
MBNA
MCF
Monzo
Novuna (SSC only)
Oakbrook
Plata
Reevo
Santander
Shawbrook
Zopa
When applying for a loan, you’ll need to provide personal details such as your name, contact details and address. You’ll also have to let the lender know your employment status and your income. You will also be asked what you need the loan for and how much you’re looking to borrow. You should expect to be asked about any debts and assets you have as well as if you’re a homeowner.
The length of your loan can vary depending on the type of loan you take out and the provider you choose, but it could be anywhere between a year and ten years. Taking out a loan for a longer period of time may reduce your monthly payments, but you may end up paying more for the loan due to interest payments.
Different lenders and different types of loans will have varying requirements, but in general whether or not you qualify will depend on your personal details and your credit history. However you can always compare loans on MoneySuperMarket – all you need to do is answer a few questions about the loan you want to take out and you’ll be given a tailored list, which you can sort by interest rates and the likelihood of your application being accepted.
You can generally apply for loans by contacting the provider you choose – either by calling through the phone, sending an application form through the post, applying online, or dropping in to their branch (if they have one) to apply in person.
For many loans you’ll need a good credit history to be accepted, but some providers also offer loans designed for people with poor or no credit. For example, you can get guarantor loans where someone else will commit to make your repayments if you can’t.
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.
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.
APR, or your 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 you 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.
Representative 16.5% APR
Maximum APR 99%
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.
You’ll normally be able to pay off all or part of your loan early, though some lenders may have an early payment charge.
When the interest rate increases, this can make it more expensive to borrow. When it comes to the loan you’ve taken out, if you’re on a variable interest rate then your APR will reflect your lender’s rate.
So, in short, if interest rates rise and you’re on a variable interest rate with your loan, your APR may go up. However, if you’ve taken out a fixed rate loan then the APR won’t rise when interest rates do.
