£3,000 loans
Compare £3,000 loans
- Find a loan that could help cover short-term costs
- Compare personal and secured loans in minutes
- Check your eligibility without affecting your credit score
Looking for a £3,000 loan?
If you’re planning a kitchen makeover, booking a big family holiday or keen to consolidate different debts, a £3,000 loan could help.
Whatever your reason, it’s important to budget carefully and make sure you can comfortably afford the monthly repayments.
Whether you have a good, average or poor credit rating, take time to explore 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, ask yourself if you really need a £3,000 loan in the first place.
Think carefully about your personal circumstances and financial situation before you borrow money, and consider the alternatives.
Many credit cards offer an interest-free period of up to 30 months on purchases or balance transfers, and some cards offer both.
For example, 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 make payments on time each month, it shouldn’t cost you a penny in interest.
Or a card that offers 0% on balance transfers can give you a breather from paying interest on credit card debt. This type of credit card tends to charge a transfer fee, though, 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 you interest. However, current interest rates are competitive and can be lower than standard credit card interest rates if you have a good credit rating. You also need to consider if you can afford the monthly repayments.
Loan calculator
If you’re thinking of applying for a loan, use our loan calculator to work out how much you could afford to borrow and how much it could cost each month.
Loan calculatorHow 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 lower monthly repayments, the total amount you’ll pay in interest will end up costing you more.
What are my options for a £3,000 loan?
Loans usually fall into one of the following categories:
Personal unsecured loans
This type of loan tends to be for a smaller amount of money. Since you’re not putting up an asset such as your home or a car to guarantee repayment, you’ll typically pay a higher interest rate than you would with a secured loan. A personal unsecured loan can be handy for covering emergency expenses such as urgent home repairs or medical bills.
Homeowner secured loans
While homeowner secured loans are generally for those who want to borrow larger sums of money - to cover major home improvements, for example - they’re available for £3,000 loans too (including £3,000 loans for bad credit borrowers).
Lenders typically offer low interest rates but rely on using your home as security. If you can’t pay back the loan, your property can be repossessed. You may also be charged an arrangement fee.
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.
Guarantor loans
You can ask a friend or family member to sign your loan agreement with you, and they’ll pay back the loan if you can’t. Guarantor loans can be a way to get lower interest rates if you have a poor credit rating or none at all.
For example, if you’ve never borrowed before, a lender has no idea how good you’ll be at repaying a loan. Having another person as a backup gives the provider extra reassurance that they’ll get their money back.
Payday loans
These provide a short-term solution to cash shortfalls. They’re unsecured loans, meaning no security is required to secure one, and come with very high rates of interest. We don’t offer this type of loan.
You’d typically use a payday loan to bridge the gap between the time you run out of money and the day 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, MoneyHelper may be able to help you.
Instalment loans
An instalment loan is a name often used to describe short-term loans with high rates of interest that are paid back in weekly or monthly instalments.
Peer-to-peer loans
A peer-to-peer loan sees you borrow money from people prepared to lend their own money via a dedicated website regulated by the Financial Conduct Authority (FCA). As an alternative to traditional high-street loans from banks, it could possibly be cheaper if you have a healthy credit rating.
What to think about when choosing your loan
If you decide a £3,000 loan could be right for you, it’ll help to work out what the impact will be on your finances. Here’s what to keep in mind:
The size of your monthly repayments
Any amount of money - no matter how small - that leaves your current account on a regular basis will have an impact on the way you look after your finances.
Be sure to budget before you take out a loan. If you regularly miss payments, it could lead to the provider taking legal action and end up with you being taken to court, or bankruptcy. In the most serious cases, you could even lose your home in the case of a secured loan.
How long you take to repay
If you decide to repay what you owe over a longer period, you’ll usually reduce the size of your monthly loan repayment. However, the longer you take to repay the loan, the more you’ll have to pay back with interest in total.
The APR offer
The annual percentage rate, otherwise known as APR, shows the total cost of borrowing money for a year - it includes the interest and any fees or charges.
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 highest 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.
Is the interest on the loan a fixed rate or variable?
The rate of interest on personal loans is usually fixed so you know how much you’ll be repaying each month. However, some secured loans come with variable rates which means your payments could go up and down.
Did you know that loan providers offer a cooling off period if you change your mind?If you’re unhappy with your loan arrangement and want to make a swift exit, you have a 14-day cooling off period. Cancel within that time and you’ll have 30 days to pay back the money you borrowed plus the interest that added up during the time you had the loan. |
Can I use a £3,000 loan to clear my other debts?
If you have other existing debt, including credit cards or an overdraft, you may want to combine them into a single loan with a lower interest rate. This could reduce the overall amount of debt you repay.
In theory, a debt consolidation loan could also be easier to manage, with a single monthly payment instead of lots of different repayments on various dates.
But a consolidation loan doesn’t mean you’ve wiped the slate clean with your other debts - you still owe the money but to a new provider. With a new loan in place, you’ll 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.
Bear in mindWhen you pay off your other debts with a consolidation loan, it can be tempting to start spending again on the old cards and overdrafts that are now free of debt. Make every effort you can to avoid doing this otherwise you risk falling into a debt spiral. |
Am I eligible for a £3,000 loan?
To be eligible for a loan, you must be:
- A UK resident
- Aged 18 or over
- Employed
As long as you meet these criteria, lenders will run a credit check to assess your eligibility for the loan. The amount you can borrow and interest rates on offer will depend on your credit score.
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. Once you’ve found a loan that suits your circumstances, you can begin the loan application process from there.
Will I need a credit check to borrow £3,000?
Yes. When you formally apply for a loan of any size, 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.
If your loan application is rejected, it will appear on your credit record and may discourage other lenders from offering you credit.
It's important to try and work out why you were turned down so you can fix any issues before you apply again.
What are the reasons my loan application might be rejected?
Lenders don’t usually tell you why you’ve been rejected for credit, but they can tell you which credit reference agency they used to assess your application.
However, reasons you might be rejected for credit could include:
- A history of missed payments
- Fraudulent activity
- A lender deciding you’re not capable of keeping up with repayments
- Failure to meet an annual income threshold
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.
How can I compare loans?
You can compare loans through us to find £3,000 loan offers from a range of providers. Even if you have a low credit rating or a bad credit history, it’s still possible to explore different offers that might suit your needs.
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Find a loanFrequently asked questions
When will I get my loan money if my application is successful?
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.
