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Compare £4,000 loans

Compare £4,000 loans

It’s common for many of us to take out a loan at some point in our lives, whether it’s for a wedding, sorting out your debts, or for an exciting new business venture. With careful thought and planning, the right loan can turn out to be a useful financial decision. 

Anelda Knoesen
From the Money team
minute read
posted 21 NOVEMBER 2019

Should I take out a £4,000 loan?

Everyone has their reasons for borrowing. Perhaps you’ve been planning a kitchen makeover, putting a deposit down on a new car, or even treating the outside of your house to a fresh lick of paint: taking out a loan for £4,000 could be what you need to get those jobs done.

If you need to borrow at the top end of £4,000 – so closer to £4,999 – it could be worth checking to see if a loan of £5,000 would be cheaper overall, as these can have lower interest rates. But you need to work it out carefully so that the total cost isn't higher and you shouldn't borrow more than you can afford to pay back 

What types of loans are there?

To make sure you get the right loan for your needs, find out what options to look out for before comparing quotes.

  • Personal unsecured loans
    These are usually for smaller amounts of money. Since you’re not using any of your assets as collateral, you’ll usually pay a higher interest rate than you would with a secured loan.
  • Homeowner secured loans
    These secured loans are generally for larger amounts of money, although they are available for £4,000 loans too. They typically offer low interest rates but rely on using your home as a guarantee. If you can’t repay your loan, your home can be repossessed. You might need to pay an arrangement fee, which you'll need to take into account when comparing costs.
  • Guarantor loans.
    You can ask a friend or family member (one with more assets and better credit) to co-sign your loan, which ultimately means that they would have to pay back the loan if you don't keep up your payments. This can be a way to get lower interest rates if you have a poor credit rating. 
  • Payday loans.
    You’d typically use a payday loan to bridge the gap between the time you run out of money, and the time you get paid again. Payday loans are unsecured, so you don't need to pledge your home or your car to get one, but the downside is the high rates of interest. We don’t offer this type of loan on our site. 
  • Installment loans.
    If you need a £4,000 loan with flexible terms, and you’re unable to pay the loan off straight away, you may prefer an installment loan. These are repaid over a long period of time, so you get a better interest rate. They are typically for larger amounts than payday loans.

Take some time to work out how much of your £4,000 loan you can afford to repay each month. Missing payments can damage your credit history, and if you’re unable to pay back a loan you could be taken to court.

How to get a loan if you have bad credit

If you’re looking to take out a £4,000 loan with a bad credit rating there are loans out there for you. Taking out a loan – even a bad credit loan – is one way of boosting your credit rating, so long as you pay your installments back in full and on time.

How to compare £4,000 loans

With the amount of loan providers out there, finding a £4,000 loan that works best for you can be time-consuming. 

Fortunately, you’re in the right place. All you need to do is use our comparison service, answer a few questions and we’ll help you compare hundreds of providers and products to find the right one for your needs. 

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