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£2,000 loan

Compare £2,000 loans

Compare short-term loans that could cover emergency expenses
Check your eligibility without affecting your credit score
Choose our best prices from a panel of FCA-regulated lenders

Is a £2,000 loan right for me?

Big emergency bill to pay? Debts to consolidate? A £2,000 loan could help.

Whatever your reason, you need to make sure a loan is the right choice for you and that you have a plan in place to pay it back.

What can I use a £2,000 loan for?

You could borrow this sum for:

Urgent home repairs or improvements – it could fund small renovation jobs such as redecorating or room refurbishment. The money could also pay to replace old kitchen appliances.
Car repairs or money towards a new car – it could help cover emergency repairs or give you a small deposit for a new car.
Unexpected emergencies – you could cover major medical or dental bills not typically covered by insurance.
Consolidation of your debts – if you owe money to lots of different lenders, a debt consolidation loan could bring it all into one place where you pay a single monthly payment.

Why it’s important to consider how much money you need

Knowing how much you need to borrow will help you decide where best to find that cash boost.

If you only want a small amount of money for a very short time, consider using your interest-free overdraft if you have one. (If not, it could be worth looking at different current accounts that offer this facility). If you go down this route, remember to check your overdraft limit. Spend more than agreed, and you could end up paying a lot of extra interest.
Credit cards with 0% interest purchases could be an option, particularly if you need to buy something specific. If you pay back what you owe within the interest-free period (and make at least the minimum monthly payments on time), you won’t pay a penny in interest.

If you need a larger sum of money, a personal loan could be the best answer. You can usually opt to borrow a minimum of £1,000, with upper limits depending on the lender. Most will lend you up to £25,000, although some may go as high as £50,000.

The lowest APRs (annual percentage rate) – the amount of interest, plus any fees, you pay on top of your loan – are reserved for customers with the best credit ratings. This is why, when you apply for a loan, it’s important to know that the APR you see might not be the one you get, unless it’s advertised as a guaranteed APR.

What types of loans can you get?

There are two different types of loan to look at:

Personal unsecured loans

A personal unsecured loan is one of the more common types of loan. It doesn’t need an asset such as your home or car to be used as security.

While this benefits you, it does mean lenders think of you as a bigger risk and tend to offer higher interest rates than secured loans.

If you do fall behind on payments, you could be taken to court by your lender. In the most serious cases, this could result in debt collectors taking any valuable assets you own to pay off the outstanding loan and any extra costs.

Homeowner secured loans

Usually, secured loans are taken out for larger amounts than £2,000 and offer you lower interest rates than for a personal loan.

Your home will typically be used as security that you’ll pay back the loan. If you’re unable to repay, you could lose your property.

How long will it take to repay a £2,000 loan?

It may be possible to find £2,000 loans with terms of up to eight years. However, it's best to opt for as short a term as possible to avoid paying any more interest than you have to.

Here’s an example of a loan with the same interest rate repaid over two and three years:

Initial loan	Time	APR	Monthly repayments	Total repayments
£2,000	24 months	20.9%	£100.94	£2,422.56
£2,000	36 months	20.9%	£84.39	£2,531.70

The golden rule is to borrow as little as possible and pay it back as quickly as possible. Always base your loan on an amount you can easily afford to repay – this will save you money and time in the long run. Keep an eye on your proposed timeline too.

Comparethemarket 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.

Will I get the representative APR rate?

The APR – or annual percentage rate – shows the total cost of the loan over a year, including interest and other standard charges. While useful for comparing loans, if the APR is ‘representative’ it’s not necessarily the rate you’ll get.

In fact, only 51% of successful loan applicants get the advertised representative rate. The actual rate you receive depends on your individual circumstances and credit history.

Learn more about APR and why it matters.

Can I borrow £2,000 if I have bad credit?

It’s not impossible to get a £2,000 loan if you have a bad credit history, but your options may be limited. You might also be charged a higher interest rate.

If you’re having trouble securing a £2,000 loan because of bad credit, you might want to consider a guarantor loan. You’ll need someone with a healthy credit rating - typically friends or family - who will act as your guarantor and pay off the loan for you if you can’t make the payments.

While guarantor loans usually have a lower interest rate than bad credit loans, the APR is still much higher than standard loans.

Top tip

If you’ve been refused a loan because of bad credit, focus on improving your credit score before you apply again. Take control of your finances, stick to budgets and pay your bills on time, and you’ll soon start to build up your score.

How do I apply for a £2,000 loan?

You can apply for a £2,000 loan at your local bank, over the phone or online. Going online is probably the fastest way – the money could be in your account within hours, particularly if it‘s via a bank where you’re already a customer.

Be aware that a loan application will show on your credit report. If you’re turned down or make too many loan applications in a short time, it could damage your credit rating. This is because lenders may think you’re in financial difficulties. So it’s worth checking whether you’ll be approved before applying.

By using our eligibility checker you can find out which loans you’re likely to be accepted for before you apply. It’s a soft check and won’t affect your credit score at all.

Find out if you’re eligible for a loan

Compare loans – the easy way

Trying to find the right type of loan can be a challenge. Our comparison service is here to make it as simple as possible by allowing you to easily see all the relevant loans for you. You can also check for any age limits and if the lender will allow debt consolidation loans.

Use our loan eligibility checker to see what loans you might be accepted for without it harming your credit rating.

Frequently asked questions

What credit score do I need to borrow £2,000?

You will usually need a fair to good credit score to get a £2,000 loan. However, the UK’s three main credit reference agencies (CRAs) all score differently, so it’s down to individual lenders to decide if you meet their criteria.

How do I check my credit score?

You can check your credit score with a CRA such as Experian, Equifax or TransUnion who will be able to share your credit report. Your credit score is usually available for free but to access your full report, you may need to pay a monthly fee after a trial period.

If the loan is approved, when will I get the money?

If you apply online successfully, the money could be in your bank account within hours. If you apply by phone or by post, it could take longer.

Can I pay my £2,000 loan off early?

Some lenders will let you pay off your loan early, in part or in full, without penalty. Others may charge an early repayment fee (ERP). It’s important to check this if you want the flexibility of paying off your loan whenever you want.

When you compare through us, we’ll show you the features of each loan, including whether an ERC applies or not.

Should I take out a payday loan to borrow £2,000?

You should think very carefully about taking out a payday loan. They can be an expensive way to borrow money. Interest rates can be very high and penalty fees are steep.

If you can’t pay back what you owe in full with interest and charges by the end of the month, your debt could quickly spiral out of control.

At the moment we don’t offer a comparison service for payday loans.

Visit the Moneyhelper website for more information and helpful advice on alternatives to payday loans.