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Compare £3,000 loans

Whether it’s a leaky roof that just can’t wait or vehicle repairs to get you back on the road, a £3,000 loan could save you a lot of stress. We’ll help you consider your options to decide if a loan is right for you.

Looking for a £3,000 loan?

You may be planning a kitchen makeover, looking to buy a car or have existing high-interest debts that are draining your bank account - there are many reasons why a boost of £3,000 could come in handy.

With any loan, it’s important to budget carefully and make sure you can comfortably afford the monthly payments.

Whether you have a great or poor credit rating, take your time to shop around and compare loans before taking the leap. Have a good look at your finances and weigh up your options before deciding if a loan is right for you.

Do I really need a loan for £3,000?

Before you start the loan application process, it’s worth considering whether you really need a £3,000 loan in the first place. You should think carefully about your personal circumstances and financial situation before you borrow money, and there are alternatives.

Many credit cards offer an interest-free period between 1-30 months on purchases or balance transfers, or both.

A 0% purchase card can help with buying big-ticket items. If you pay back the money before the 0% interest free period runs out, and on time each month, it shouldn’t cost you a penny in interest. 

A card that offers 0% on balance transfers can give you a breather from paying interest on credit card debts. Just be aware that most balance transfer credit cards will charge a transfer fee. And you must make at least the minimum payment on time every month or you could lose the interest-free rate. 

Loans, on the other hand, will charge interest, though current rates are competitive and can be lower than credit card standard interest rates if you have a good credit rating. You also need to consider if you can afford the monthly repayments. 

Loans calculator

If you’re thinking about taking out a loan, use our loans calculator to work out how much you can afford to borrow and how much it’ll cost each month.

Loan calculator

What are my options for a £3,000 loan?

Loans usually fall into one of the following categories:

  • Personal unsecured loans. These are usually for smaller amounts of money. Since you’re not using any of your assets to guarantee repayment, you’ll typically pay a higher interest rate than you would with a secured loan.
  • Homeowner secured loans. While secured loans are generally for those borrowing larger amounts of money, for things like home improvements, they’re available for £3,000 loans too (including £3,000 loans for bad credit borrowers). They typically offer low interest rates but rely on using your home as collateral to guarantee you’ll pay them back. If you can’t, your home can be repossessed. You may also be charged an arrangement fee.
  • Guarantor loans. You can ask a friend or family member to co-sign your loan, which ultimately makes them responsible for the debt. That means they’ll have to pay back the loan if you can’t. Guarantor loans can be a way to get lower interest rates if you have a poor or no credit rating. For example, if you’ve never borrowed before, a lender has no idea how good you’ll be at paying back your loan.
  • Payday loans. These provide a short-term solution to cash shortfalls. They’re unsecured loans, meaning no collateral is required to secure one, and come with very high rates of interest. We don’t offer this type of loan on our site. You’d typically use a payday loan to bridge the gap between the time you run out of money to the time you get paid again. You should think very carefully before applying for a payday loan. If you’re in debt and looking for advice or alternatives to payday loans, the Money Advice Service may be able to help you.
  • Instalment loans
    In a sense, most personal loans are instalment loans. But this term is often used to describe short-term loans with high rates of interest that are paid back in weekly or monthly instalments, unlike payday loans that are paid back in a single instalment.
  • Peer-to-peer loans
    Essentially, you borrow money from individuals on a Financial Conduct Authority (FCA) regulated crowdfunding platform or website, instead of a bank. They’re a popular alternative to traditional high-street loans and could possibly be cheaper if your credit rating is good.

Compare the Market limited acts as a credit broker, not a lender. To apply you must be a UK resident, aged 18 or over. Credit is subject to status and eligibility.

What to think about when choosing your loan

If you decide a £3,000 loan is right for you, there’s a few things you’ll need to think about before you compare. Here’s what to keep in mind:

  • The monthly repayments. Sometimes, even a small amount can make quite an impact when it’s leaving your current account on a regular basis. Be sure to budget before you take out a loan. Missing payments regularly could lead to the provider taking further legal action, which could result in CCJs or bankruptcy. You could even lose your home in the case of a secured loan.
  • The loan term. Paying over a longer term will usually reduce your monthly loan repayments. However, the longer you take to repay the loan, the larger the total amount you’ll pay back.
  • The APR. The annual percentage rate shows the total cost of borrowing money for a year. But the APRs you see in loan adverts are often ‘representative APR’. This representative example must be the loan rate the provider offers to at least 51% of customers who are accepted for the loan. The APR you’re offered could be higher or lower, depending on your financial history and credit rating. The best rates are usually reserved for those with the best credit scores.
  • Early repayment penalties. If you’re lucky enough to be able to pay off your loan earlier than expected, some lenders may charge you a fee. Look out for this if you think it’s a possibility.
  • Whether the interest on the loan is a fixed rate or variable. Interest on personal loans is usually fixed, but some secured loans have variable rates of interest, which means your payments could go up and down.

Did you know? 

Loan providers offer a cooling-off period. This is good news if you’re unhappy with your loan arrangement and want to make a swift exit. You’ll have a 14-day cooling off period. If you cancel within that time, you’ll have 30 days to pay back the money you borrowed plus the interest accumulated on the time you had the loan.

How much does a £3,000 loan cost?

Here’s an example of how much a typical £3,000 loan could cost you over two and three years:

Initial loan amount Length of loan APR Monthly repayments Total repayments
£3,000 2 years 8.9% £136.44 £3,274.66
£3,000 3 years 8.9% £94.78 £3,412.11

How long will it take to repay a £3,000 loan?

A personal unsecured loan for £3,000 could typically be taken out for one to five years, depending on the lender.

However, there’s a golden rule when it comes to borrowing money: borrow as little as possible and pay it back as quickly as possible.

Although spreading your debt over a longer period could mean cheaper monthly repayments, the total amount you’ll pay in interest will end up costing you more.

Can I use a £3,000 loan to clear my other debts?

If you have other existing debt, like credit cards or an overdraft, you may want to combine them into a single loan with a lower interest rate to reduce the overall amount you’re paying.

In theory, a debt consolidation loan could be easier to manage. It allows you to pay off multiple debts with one payment each month, which could cut the overall cost of your debt and help you take control of your finances.

But a consolidation loan doesn’t mean you’ve cleared your other debts. It’s still a loan and you need to be disciplined about paying it back. If you can’t keep up with your repayments, £3,000 could quickly snowball into even greater debt.

Also think about whether you’d be tempted to start spending on your cards again, effectively building up another lump of debt.

Am I eligible for a £3,000 loan?

To be eligible for a loan, you must be a UK resident aged 18 or over. You’ll also usually need to be employed. After that, lenders will run a credit check to assess your eligibility for the loan. Depending on your credit score, the amount you can borrow, along with the interest rate you pay, may vary.

You can check your potential eligibility for a loan using our loans eligibility checker. It’ll tell you which loans you’re likely to be accepted for, meaning you can feel confident when you apply.

How do I apply for a £3,000 loan?

You can start by using our loan comparison service, to find a loan you’re likely to be eligible for. Once you’ve found a loan product that’s right for you, you can begin the loan application process from there.

Will I need a credit check to borrow £3,000?

Yes. When you apply for a loan, no matter what the amount, the lender will carry out a ‘hard credit check’ before considering your application.

This affordability check involves reviewing your credit history to see how you’ve managed your finances in the past and how likely you are to pay back the loan.

Every time you make an application for a loan or credit, a hard credit search will be marked on your credit file.

If your loan application is rejected, it will go on your credit record, which may discourage other lenders from offering you credit. If a lender has said no, you should try to work out why so you can fix any issues before you apply for other loans. And ideally, see if you can improve your credit record to reduce the chance of being turned down a second time.

Use our loans eligibility checker to find out which loans you’re most likely to be accepted for before you go ahead and apply. It’s a ‘soft search’, so it won’t be marked on your credit file or affect your credit score in any way. 

Can I get a £3,000 loan with bad credit?

A poor credit score doesn’t automatically mean you’ll be refused a loan, but your choices may be limited. You might also be charged a higher interest rate.

Although there are options for those with poor credit, it might be better to try to build up your credit score before applying for a loan. It could take up to six months to improve your credit rating, but it’s worth the wait if it increases your chances of getting your application approved.

Find out how you can build your credit score.

When will I get my loan?

When you get your money will depend on your lender. Some will send it to you on the same day of acceptance, while others may take a few days.

Can I pay off my loan early?

Yes, you can repay your loan early, but you’ll normally need to pay an early repayment fee. The amount you have to pay should be listed in your repayment terms, but you can also speak to your lender.

How can I compare loans quickly and easily?

We can make it easier to find £3,000 loan offers from a range of loan providers. Whether you have a high credit rating or a bad credit history, shopping around and comparing offers will help you find a loan to suit your needs and circumstances.

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The content written in this article is for information purposes only and should not be taken as financial advice. If you require support on the products discussed here, please speak to your bank/lender or seek the advice of an independent professional financial advisor. We also have more information on our Customer Support Hub.

Page last reviewed on 22 DECEMBER 2023
by Alex Hasty