Apply with confidence
When you’re pre-approved, the
loan amount, duration and interest
rate are all confirmed
Applying for a loan can feel like a complicated process, especially if you’ve struggled to be approved in the past. It's not always clear what deal you’ll be offered and your chance of being accepted can feel unknown. You might be worried that a rejection will further damage your credit rating.
Using MoneySuperMarket to search for a loan takes away that uncertainty. Rather than waiting weeks for your application to go through at the bank, when you use our eligibility checker tool you’ll quickly be given an indication of how likely you are to accepted for a loan - so you can decide which deal is right for you.
We'll show you your chances of getting a loan, and if you’re ‘pre-approved’ you’ll have greater confidence that your loan application will go through. When you search for a loan with us you won't harm your credit score.
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
If you’ve had debt problems in the past or have a low credit score, you may find your loan options are limited. While this can feel disheartening there are specialist loan providers who offer loans to those with a poor or limited credit history. But consider carefully if you can afford to borrow more. While it may be easier to be accepted for a bad credit loan they usually come with higher interest rates and lower borrowing limits, making them more expensive in the long run.
When you compare loans with MoneySuperMarket it won’t harm your credit score. Our service can give you an instant indication of whether you’re likely to be accepted or even pre-approved for a specific loan product.
Improving your credit score could broaden your options. Credit Monitor gives you access to your credit score for free, with tips to improve your rating and boost your borrowing power.
Representative 32.3% APR
Whether you’re making home improvements or funding the cost of a new car, we’ll need to know what the loan will be used for, so it’s tailored to your needs
Looking for a smaller loan of £1,000 or need a larger loan up to £25,000? Let us know the amount you’re looking to borrow and how long you want to pay it off
We’ll need a few details about your including whether you’re a homeowner, if anyone depends on you financially and your employment status, to understand your financial picture
How quickly you’ll receive your loan will depend on the loan provider. With some lenders you might receive the money the next working day, while others may take longer to approve your application and pay out.
If you’re after a loan quickly, comparing loans through MoneySuperMarket could speed up the process. And, if you’re worried about being declined for a loan, our loan eligibility checker can show you your chances of being accepted for a loan.
If you're pre-approved for any loans, then the interest rate, loan amount and term are all confirmed - provided you use the same details and you pass final lender checks when you apply.
Bad credit loans tend to be easier to get as they’re offered by lenders that specialise in bad credit and tend to offer lower borrowing amounts
With a secured loan, you’ll put up a valuable possession, usually your home or car as collateral to reduce your level of risk, which may be repossessed if you can’t keep up with your repayments
Your loan must have a guarantor, usually a family member, who is responsible for paying the money back if you can’t. This works as a safety net for the lender as they’ll know the loan will be repaid
If you’re looking to improve your chances of being approved for a loan, the best place to start is your credit score. Whenever you borrow money, from loans and credit cards to taking out a mortgage, lenders will look at your credit score to get a good idea of how well you manage credit.
Your credit score shows how you’ve handled credit in the past, including borrowing and repaying in good time. So, the stronger your credit score, the better your chance of being accepted for a loan and getting the lowest rates.
Want to improve your credit score? Credit Monitor is a free tool that shows you your score and offers ways to improve it. You’ll also see what you’re doing well so you can keep up those good habits.
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
No loan is entirely guaranteed and will depend on your credit score and how well you’ve managed credit in the past. If you have a history of bad credit, improving your credit score over time will improve your choices of loan deals, and your chances of being approved.
If you don’t have proof of income you may find it harder to be approved for a loan. Lenders usually prefer you to have a stable job, to prove you have a way to pay the loan back and meet your repayments in good time. You may still be able to get a loan without proof of income, but you’ll likely face higher interest rates.
If you’re unemployed, you may still be able to get a loan but your options will be more limited. Most lenders will refuse to offer you credit if you don’t have a reliable source of income. If this is the case, you’ll probably need to find a specialist lender - and usually interest rates will be high.
Many households are struggling to make ends meet as the cost of living keeps rising. There's little spare cash around to build up an emergency fund, which means it can be tricky to pay for a new washing machine or boiler if your old one breaks down. Maybe you need a new car, or perhaps you're planning a holiday, a wedding or a home makeover?
Let’s face it, most people at some point in their lives need to borrow some money. So it’s important to understand the pros and cons of the different types of loan, as well as how to secure the best rates. If not, you could end up with a poor deal – and costly credit can send you into a downward debt spiral.
Loans can broadly be divided into two categories: secured and unsecured. With a secured loan, the lender will insist on some sort of security against the money you borrow, often a house or car. If you default on the payments, the bank or building society can then sell the asset to clear the debt.
You can usually borrow large amounts with a secured loan, and at a lower rate of interest. Plus, you can pay back the debt over a long time period, perhaps 10 or 15 years.
However, secured loans are more risky than unsecured loans because you could lose your collateral if you cannot clear the debt. You should therefore think very carefully - and consider other options - before taking out a secured loan.
You can typically borrow as little as £1,000 up to a maximum of £25,000 with an unsecured loan – also known as a personal loan.
The interest rate is usually fixed and you pay back the debt over a set term, normally one, three or five years. Personal loans can therefore help you to budget because you know at the outset the full cost of your borrowings and how long they will take to clear.
For example, if you are getting married and the wedding is set to cost £7,500, you could take out a loan for £7,500 at 3% over three years. Your monthly payments would be fixed at £217.98 and you would pay total interest of £347.11 over the 36-month term.
Representative example: If you borrow £7,500, you would make 36 monthly repayments of £217.98. The total amount repayable is £7,847.11. Representative 3.0% APR, 3.0% (fixed) p.a.
If you have run up other debts at high rates of interest, a personal loan can be a good way to manage your borrowings and bring down the cost. Let’s say you have built up a debt of £3,000 on a store card that charges interest of 29%. You could take out a loan for £3,000 at, say, 9%, to pay off the store card balance and reduce the monthly payment. If you also cut up the store card, you would not be tempted to go on a spreading spree and add to your debt burden!
Interest rates on personal loans vary across the market, but as a rough rule of thumb, the more you borrow, the lower the rate. For example, you might pay interest of 9% on a £3,000 loan, but only 3% on a loan of £7,000. It can therefore make sense to borrow a larger amount, say £7,000 instead of £6,500. Just make sure you don’t take on a debt that you cannot afford to repay.
The size of the loan will to some extent determine the term of the loan. It is, for example, difficult to pay off a £7,000 loan in just one year as the monthly payments would be relatively high. However, if you borrow only £1,000, a term of 12 months is more manageable.
You also have to consider the cost implications of the loan term as the longer the term, the lower the monthly payments – but the higher the total cost.
The interest rates on personal loans depend partly on the loan amount and term. But lenders also assess your creditworthiness, usually by looking at your credit file.
The lowest rates are reserved for the best customers – that is, borrowers with a spotless credit record. If you are judged likely to default on the loan because of a poor credit history, you will be charged a higher rate of interest or your application will be turned down.
In other words, there is no guarantee that you will qualify for the advertised rates. Lenders are allowed to boast of low representative rates if those rates are charged to 51% of successful applicants, which means almost half could be charged a higher rate.
You can pay off your debt before the end of the loan term if you come into some cash. But watch out for early repayment fees. Many lenders levy a penalty for early repayment, which could wipe out any potential interest savings. Some lenders also charge arrangement fees for personal loans, which you should factor into your cost calculations.
You should try to 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 loan that you can’t afford – you could even try MoneySuperMarket’s loan calculator for guidance.
Likewise it’s better to avoid taking out a loan 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.
Interest free periods can be useful when you’re borrowing, but you should always keep an eye on how long this will last. Once the interest free period ends you may be moved on to a high rate instead, so it can be a good idea to pay off as much of your debt as you can during this interest free period.
Variable rate deals mean the interest rate at which you make repayments can change whenever the lender decides to change it – though 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 it could be a good idea to ensure you’ll be able to cope with interest rate fluctuations 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 loan application you make, just like credit applications, leave 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.
Rather than making lots of applications and hoping one will stick, you may be better off running a soft check on your credit score to see what kinds of loans you’ll be eligible for. This way you can minimise your applications and reduce the chance of you damaging your credit.
Often with loans, the more you borrow the less interest you’ll end up paying. It can vary by lenders, but you should always check on the interest rate they charge as there might be a chance you actually pay less overall by choosing a bigger loan with a lower interest rate.
The best way to find the right deal on a loan is to shop around, and by comparing deals on MoneySuperMarket you’ll be able to browse a list tailored specifically for you. All you need to do is answer a few questions about the loan you need and you’ll be able to compare loans from a number of different providers by the rate you’ll pay back at as well as how likely you are to be accepted.
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Need a loan in a hurry? Make sure you're fully informed with our guide to emergency loans
If you’ve struggled with bad credit in the past but need money quickly, you may be worried about being rejected for a loan. Our guide covers how short term loans work and if you can get one with a low credit score... If you need money quickly but are worried you’ll be turned down for borrowing, our guide might be able to help
Being able to get money quickly with few credit checks may seem appealing to potential borrowers, but with high interest rates and the amount you can borrow being capped, they won’t be for everyone. Our guide covers how quick payout loans work and what you need to know
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