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 pronto, a £3,000 loan can save you lots of stress.

Whether it’s a leaky roof that just can’t wait or vehicle repairs to get you back on the road pronto, a £3,000 loan can save you lots of stress.

Anelda Knoesen
From the Money team
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Posted 21 NOVEMBER 2019

Do I really need a loan for £3,000?

Before you begin, it’s worth considering whether you really need a £3,000 loan in the first place. There are alternatives. 

Many credit cards offer an interest-free period between 1-30 months. This can be useful for transferring balances or making a purchase that might instead need a loan. 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, but you might have to pay balance transfer fees. 

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've got a good credit rating. You also need to consider if you can afford the monthly repayments. 

If a £3,000 loan is right for you, then there are a few things you’ll need to think about before you compare: type of loan, monthly repayments, APR and duration of the loan. 

How can I choose the right type of £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 usually 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, 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 (one with more assets and better credit) to co-sign your loan, which ultimately makes them responsible for the debt. This can be a way to get lower interest rates if you have a poor 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.
  • Installment loans.
    These are repaid over a long period of time, so you get a better interest rate. If you need a £3,000 loan with flexible terms, and you’re unable to pay the loan off straight away, you may prefer an installment loan. 
  • Repayment costs will vary from loan to loan, but you’ll need to pay it back in regular monthly installments.

What to think about when picking your loan

Here are a few things to keep in mind.

  • The monthly repayments: sometimes even a small amount can make quite an impact when it’s leaving your bank account on a regular basis. Be sure to budget first. Missing payments or even paying late one month can affect your credit score, so choose an affordable loan.
  • The overall amount you’ll repay: the longer you take to repay the loan, the larger the total amount you pay back will be.
  • The APR: the annual percentage rates you see in loan adverts are always ‘representative’. This means that the provider must offer this rate 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 past and present.
  • 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, so if you think this is a possibility then you may want to look out for this.  

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

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’ve got a high credit rating or a bad credit history, you’re sure to find an arrangement that ticks all your boxes.

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