A simples guide

Compare £3,000 loans

When most people think of a loan, they may be concerned about the difficulty in paying it off. However, a £3,000 loan can be an excellent safety net for some of life’s sticky situations.

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

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Do I really need a loan for £3,000?

Before you begin your hunt, it’s worth contemplating just how badly you need a £3,000 loan in the first place. Many credit cards will give you up to £5,000, with some offering up to 27 months of 0% APR too – meaning if you pay it back on time, it won’t cost you a penny in interest. Loans on other hand will charge interest, though today’s rates are particularly competitive. You also need to consider if you can afford the monthly repayments. If a £3,000 loan is right for you, then there’s a few things you’ll need to think about first.

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Choosing the right type of £3,000 loan

Loans usually fall into one of the following categories:

- Unsecured loans: as the name suggests these are the opposite of secured loans, and are usually for smaller amounts of money. Since you’re not putting any of your belongings down as collateral, you’ll usually pay a higher interest rate instead.

- Secured loans: while secured loans are generally for those borrowing larger amounts of money, they’re still available for £3,000 loans too (including £3,000 loans for bad credit borrowers). They typically offer low interest rates, but rely on collateral to guarantee you’ll pay them back. Collateral can range from a vehicle, to the very roof over your head.

- Guarantor loans: these are like a combination of the above two. If you're taking out a loan 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 is an especially handy way to access lower interest rates if you have a poorer credit rating.

Repayments on your £3,000 loan

Repayments vary from loan to loan but you’ll need to pay it back in regular monthly instalments. 

What to think about when picking your loan

While choosing a loan for £3,000 can seem like an intimidating process, full of numbers, APR percentages, and unseen pitfalls, there are really just a handful of things you need to keep in mind:

- For a relatively small amount like £3,000, a secured loan is may be unnecessary, particularly if it’s secured against something as important as your home. You don’t want to put that in jeopardy if you can’t keep up the repayments.

- Can you afford the repayments? This may seem like a glaringly obvious thing to consider, but sometimes a small-looking figure can make quite an impact when it’s leaving your bank account on a regular basis. Be sure to budget first.

- Consider the overall amount you’ll be repaying, rather than just the monthly repayments. The longer you take to repay the loan, the larger the total amount you pay back will be.

- The APR rates you see loan providers flaunt in their advertisements are always representative – this means they’re an average rate, as opposed to a definitive one. Yours could be higher or lower, depending on your financial past and present.

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

Shop around

At comparethemarket.com we make it easy to find loan offers from some a range of loan providers. Whether you’ve got a squeaky-clean credit rating or a bad credit history, you’re sure to find an arrangement that ticks all your boxes. Our best buy table makes comparing all the important stuff a breeze; so give it a try today.

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