Loans
Compare our best loan interest rates
- Check your eligibility for loans before applying, without impacting your credit score
- Search for a loan from 39 trusted lenders[1]
[1] Correct as of March 2025.
We compare loans from 39 FCA-regulated lenders[1], including:
Why choose Compare the Market?
Use our free eligibility checker to view personalised results
See loans from a wide range of lenders
Loans available from £1,000 up to £150,000
Loan calculator
To get an idea of how much a loan could cost you, use our loan calculator.
You can use it in one of two ways:
- If you know how much you want to borrow: you can adjust the loan term (the length) and APR (the total cost of borrowing over a year, including interest and any fees) to see how much your monthly repayments could be.
- If you know how much you can afford to repay each month: you can adjust the loan term and APR to see how much you could potentially borrow.
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What is a loan?
A loan is a lump sum of money that you borrow from a lender. When you take out a loan you agree to pay back what you borrow, plus interest, in monthly instalments over an agreed period until the loan is paid off.
The interest on a loan is worked out as a percentage of the loan balance and added to the monthly repayments. Lenders decide what interest rate to charge you based on factors including your credit score and how long you’ll take to pay back the loan.
A loan could be useful if you need to borrow a larger amount of money upfront than you could get through other types of borrowing.
What can I get a loan for?
You can get a loan to fund a variety of expenses and to consolidate existing loans or debts. Common uses include:
Unexpected expenses
Unsecured personal loans can be used to cover large, unexpected bills – for example, emergency repairs to your boiler or car.
Buying a car
There are different ways to finance buying a car. You could look at a personal loan, which is unsecured. Or you could consider a hire purchase (HP) or personal contract purchase (PCP) loan, which are both secured against the vehicle you’re buying.
Home improvements
Looking to get a new kitchen or bathroom, or build an extension? A home improvement loan could help you fund your project. These loans can be secured or unsecured.
Weddings
The best day of your life can come with a big price tag. A wedding loan could help you spread the cost.
Managing your money
A debt consolidation loan can bring all your debts together into a single loan with one payment plan.
Bridging the gap when selling your home
A short-term bridging loan could let you to buy a new home while you wait for the sale of your current home to complete.
Spreading the cost of a holiday
Ideally, you’d use your savings to pay for a holiday. But if you’re planning the trip of a lifetime, you might want to top up your savings with an unsecured holiday loan.
What’s the best type of loan for me?
The best type of loan for you will depend on your individual circumstances.
1. Unsecured loan
With an unsecured loan, more commonly known as a personal loan, you can generally borrow up to £25,000 without putting up a valuable asset such as your home as security. But you may be able to borrow up to £50,000 from some lenders depending on your circumstances.
2. Secured loan
A secured loan requires you to put up something you own as security. In the case of a homeowner loan, that would be your house. If it’s a secured car finance loan, it’s your car.
You may be able to borrow larger sums of money with this type of loan. But if you can’t pay back the loan, you could lose your home or car.
3. Guarantor loans
A guarantor loan is usually an unsecured loan, but some banks may also offer secured guarantor loans.
This type of loan is guaranteed by someone who agrees to make the loan repayments if you can’t. It could be an option if you have bad credit or no credit history.
You can’t compare guarantor loans with Compare the Market.
4. Peer-to-peer loan
With a peer-to-peer loan, you borrow money from an individual or a group of people instead of a financial institution. Peer-to-peer websites connect you with people willing to lend to you, then act as intermediaries. Peer-to-peer loans are typically unsecured.
You can’t compare peer-to-peer loans with Compare the Market.
5. Bad credit loan
A bad credit loan is specifically aimed at borrowers with a poor credit score or no credit history. This type of loan usually has a higher interest rate and tends to come with restrictions, such as a lower borrowing limit. Sometimes you’ll need a guarantor before a lender will approve your loan application.
See if you’re eligible for a secured, unsecured or bad credit loan by using our eligibility checker before you apply – it won’t impact your credit score.
Check eligibilityCompare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
Consider whether a loan is right for you
Never rush into taking out a loan. Think carefully about whether borrowing is the best option for you.
If you want to go ahead and apply for a loan, take time to work out what you can comfortably afford to repay (our loan calculator can help with that).
Consider how a change in your circumstances might affect your ability to repay. And remember that not being able to pay back your loan on time can have serious financial consequences.
What will my loan cost?
Understanding how much you’ll pay for your loan isn’t just a matter of knowing what the monthly repayments will be. You should also compare loan rates and look at what the loan will cost over the whole term – that’s the total amount repayable.
Here’s an example for a £5,000 loan taken out at 10% APR and paid back over two, three and four years. It assumes there are no extra fees involved with the loan. Please note, this example is for illustrative purposes only.
| Length of loan | Monthly repayment | Total interest paid |
| 2 years | £229.73 | £513.55 |
| 3 years | £160.33 | £771.74 |
| 4 years | £125.78 | £1,037.46 |
In this example, spreading the loan over four years instead of two would make your monthly repayments cheaper but would also cost you more than twice as much in interest.
How long can I borrow for?
How long you can borrow for depends on the amount you’re borrowing and the type of loan you’re taking out. You generally have longer to pay back larger loans.
Typically, you can pay back an unsecured personal loan over one to 10 years, though you may find longer or shorter terms from some lenders.
Secured loans often have longer repayment periods, sometimes up to 40 years. While this will mean your monthly payments are lower, you’ll pay much more interest overall.
Step-by-step guide to finding the best bank loan for you
1. Check your credit report
Ensuring your credit report’s in good shape can help you access the best loan rates. You can check your credit report for free with the three main credit reference agencies – Equifax, Experian and TransUnion.
2. Decide how much you want to borrow
Before you start exploring bank loans and other available options, work out how much you need to borrow. Remember the golden rule: don’t be tempted to borrow more than you need, even if you’re eligible to do so.
3. Check you can afford the repayments
Use our loan calculator to get an idea of how much your repayments might be. You can adjust the amount of the loan, its length, APR and potential monthly repayments to weigh up affordability.
4. Check which loans you might be eligible for
Use our loan eligibility checker to see which loans you’re likely to be accepted for, without impacting your credit score.
5. Compare loans and apply
Check and compare interest rates and terms on loans you’re likely to be eligible for. Make your decision and apply for a loan of your choice.
Check eligibilityWill I be accepted when I apply for a loan?
It’s not guaranteed. Whether you’ll be accepted depends on a number of things, including:
- Your credit score
- Your income and existing debts
- How much you want to borrow.
When you do a loan comparison with us, you can find out which loans you’re eligible for by answering a few questions. This is a soft credit check and won’t impact your credit score.
Check eligibilityHow can I get approved for a loan?
If you’ve previously struggled to get a loan or are worried about being accepted for the first time, here are some tips that could help you get accepted:
- Build your credit score: if you have a low credit score, you could find it difficult getting approved for a loan or the best loan rates. Check what you can do to improve your credit score before you apply for a loan.
- Check your eligibility: use our eligibility checker to see which loans you’re likely to be accepted for, without impacting your credit score. Only apply to lenders most likely to accept you.
- Don’t apply to borrow too much: lenders will consider the affordability of your loan, taking into account your income and any existing debts. If you’re looking to borrow more than you can pay back, you’re likely to be turned down.
- Double check your application: review all the information you’ve given before submitting your application. Watch out for typos as they could make the difference between you being accepted or rejected.
- Space out loan applications: if you’ve been turned down for a loan or another type of credit, wait before applying again. Making multiple credit applications in a short amount of time could lower your credit score. It’s also a red flag to lenders who may think you’re having financial difficulties. Read our guide on what to do if you’re refused a loan.
With interest rates so high, how can I get the best loan deal?
To improve your chances of getting the best loan deal for you, start by building your credit score. A good credit rating shows lenders that you can manage your finances responsibly and are a reliable borrower. This could give you access to better interest rates.
Shopping around can help you compare loan interest rates to see which are the most competitive. Use our loan comparison service to check which loans you’re likely to be eligible for before you apply. Checking your eligibility won’t affect your credit score.
Check eligibilityBeware of loan scams
According to the UK Government, fraud is by far the most common crime, accounting for over 40% of all offences in England and Wales between April 2022 and March 2023. Even the most financially savvy borrowers can be duped by loan fraudsters, so it always pays to be cautious.
If you think you’ve found the best loan possible at an unbelievable rate, remember the golden rule: if it sounds too good to be true, it probably is.
Here are a few things to watch out for:
- Cold calls, texts or emails offering you a loan and asking you to reply or call back
- Being asked to pay an upfront fee
- Being asked to give out personal details
- Being asked to pay quickly or unusually
- Loan companies that are not authorised by the Financial Conduct Authority (FCA).
If you need to report a scam or suspected fraud, contact Action Fraud online or by phoning 0300 123 2040 (Mon-Fri 8am-8pm).
Read our guide for more tips on how to avoid loan fraud.
What our expert says...
“Borrowing is a normal part of life for millions in the UK. Many of us need to borrow at some point to fund a major purchase, whether that’s a new car or a new kitchen. Some of us will also choose to use a new loan to pay off several existing ones at a lower rate.
"It makes sense to shop around to find a loan. If you do decide a loan is right for you, try to keep costs to a minimum, only borrow what you can afford to pay back and always keep up with the repayments.”
- Guy Anker, Personal finance and insurance expert
What do I need to get a loan?
To be eligible for a loan, you’ll need to undergo a credit check and meet the potential lender’s requirements. Generally, you’ll have to:
- Be at least 18 and meet any other age requirements. For some lenders this may be 21 or older and there may be upper age limits too
- Have a regular income (some lenders have a minimum income requirement too)
- Be on the electoral register
- Have a bank account
- Be able to afford the repayments.
Start a loan comparison
Managing your money while juggling everything else life throws at you can sometimes be tricky.
If you find yourself needing a quick cash boost to cover a surprise expense, or you want to fund something major such as a home renovation, a loan may help.
We have lots of information on what could be the best loan types for you. And our loans eligibility checker can give you an idea of which bank loans and other options you’re likely to be accepted for before you apply, without affecting your credit score.
Once you know which type of loan you need, shop around and compare our best loan deals to help you find the right one for you.
What are my alternatives if I want to borrow money?
Loans aren’t your only option for borrowing. You might find that one of the following is more suitable for you:
- 0% purchase credit cards: these offer 0% interest on purchases made within a set period. Ideally, you’ll need to repay in full before your 0% period ends and you should always keep up with the minimum monthly repayments.
- Car finance: as well as loans, options can include hire purchase (HP) and personal contract purchase (PCP).
- 0% overdrafts: a few bank accounts let you go overdrawn in the short term without paying any fees or interest. This isn’t usually the case for student or graduate accounts, though.
Frequently asked questions
Can I get a loan for a house deposit?
Although it’s possible to get a loan for a house deposit, many mortgage lenders will reject your mortgage application if you’re using a personal loan to pay the deposit.
Mortgage lenders carefully assess your affordability to make sure you can afford the repayments on your home. If you’re paying interest on a loan for the deposit on top of your mortgage repayments, you’ll likely be considered higher risk. That means if you are accepted for a mortgage, it’s likely to be more expensive.
How quickly can I get a loan?
How long it takes to get a loan depends on the lender, its application and approvals process, and the type of loan you’re applying for.
When you apply for a loan, lenders check your credit score and review your application. This could take anything from a few hours to a week or more. Once you’re approved, many lenders can have the funds in your account within a few days. Some even say the same day, if your application is accepted.
There are lenders that offer fast turnaround times – for payday loans, for example. But these types of loans tend to be very expensive compared to other types of borrowing.
You can’t compare payday loans with Compare the Market.
Do I need a good credit rating to get a loan?
A good credit score means you’re more likely to be accepted for a loan, but having a bad score doesn’t mean you’ll always be refused.
There are several loan options for those with bad credit. But they typically have higher interest rates and come with borrowing restrictions.
A good credit score shows lenders you’re responsible with money and have a history of borrowing and paying off debts. This is why people with the best credit scores tend to get the best loan rates.
How much can I borrow?
How much you can borrow depends on the type of loan and your financial situation. Your credit score, income and existing bank loans, debts and other outgoings will be taken into consideration.
If you apply for a secured loan, you may be able to borrow a larger amount. But if you can’t meet the repayments, your lender could repossess the asset – such as your home or car – that you offered as security for the loan.
What is APR?
APR represents the cost of borrowing over 12 months. It includes any fees that come with the loan and the interest payable. APR stands for annual percentage rate.
Does APR rise with interest rate increases?
If you have a loan with a variable APR and the Bank of England base rate increases, so could your APR. If this happens, your loan repayments will become higher.
If you have a fixed-rate loan the APR will remain the same, even if the base rate goes up.
What is a representative example?
A representative example shows how much borrowing the amount of money over the period stated in the example could cost. It must be shown when a loan is advertised.
The representative example will show the:
- Loan amount
- Interest rate
- Length of the loan
- Representative APR
- Repayment instalment amount
- Total amount payable
If you see a representative APR advertised, it must be offered to at least 51% of successful applicants. However, the rate you’ll get depends on your credit record and personal circumstances.
What is a homeowner loan?
A homeowner loan is a type of secured loan that uses your home as security. It offers you access to larger amounts and longer loan terms, as well as potentially lower loan rates than unsecured loans.
This type of loan could be an option if you have a bad credit history. When you apply, the lender will check whether you have enough equity in your home to borrow against.
It’s important you understand the risk of taking out a loan secured on your home. If you can’t meet the repayments on your homeowner loan, the provider can repossess your home.
What is a soft search?
A soft search checks your credit score and history. But it won’t show up on your credit history or affect your credit score. We carry out a soft search when you use our eligibility checker.
Can I overpay or pay my loan off early?
It depends on your loan agreement. Although providers must allow you to pay back personal loans in full, there may be fees for early repayments or overpayments. Read more on repaying loans early.
What happens if I miss a loan repayment?
Missing a loan repayment will likely mean you’re charged a penalty fee. It could also negatively impact your credit score, meaning you could find it harder to borrow in the future.
Missing a loan payment can also mean the loan ends up costing you more overall. That’s because interest could be charged on the higher remaining balance.
What if I’m struggling to repay my loan?
If you’re struggling to repay your loan, get in touch with the loan provider. It may give you more time to make the payment. Simply missing repayments will affect your credit score and you’ll be charged a fee for each repayment you miss.
If you need help with debt, organisations including Citizens Advice and StepChange Debt Charity can offer free non-judgmental advice.
Will searching for a loan affect my credit rating?
Searching for a loan with Compare the Market won’t affect your credit rating. But each formal application you make for credit will be marked on your credit file.
If you make several applications over a short period, lenders could see this as a sign that you’re in desperate need of a loan or that you’re taking on more debt than you can afford.
What is a payment holiday?
A payment holiday is when you take a short break from paying back your loan. The payment holiday needs to be agreed with your lender. You may need a payment holiday if you’ve lost your job, taken maternity leave or received unexpected bills to pay.
You’ll continue to be charged interest if you take a payment holiday. And you’ll still have to pay back the loan at a later date. Your monthly repayments may also go up after the agreed payment holiday is over – check with your lender.
Can I take out a loan while on benefits or unemployed?
It’s possible to get loans if you’re unemployed, but they usually come with higher interest rates and specific conditions.
Having little or no income poses a bigger risk to lenders. If they do offer you a loan, they may ask you to put up your home or car as security. Alternatively, you could consider a guarantor loan.
If you’re on certain benefits, you may be eligible for a Budgeting Loan from the government.
Is it better to borrow from my current bank?
Borrowing from your bank isn’t necessarily the best option. Your bank will usually be willing to lend you money if you have a good credit history and hold a current account with it. But that doesn’t automatically mean its borrowing terms are right for you.
It’s a good idea to check your eligibility for different loans with a loan comparison service such as ours. You can then compare what’s offered by your bank with a range of other options to see which is the most affordable for you.
