A simples guide

Compare £5000 loan

So, you need a £5000 loan? A combination of a low base rate and price wars between providers mean that interest rates have currently never been lower, so your timing is good. But there are certainly some things to watch out for. To avoid a headache and lighter pockets in the long run, always follow the golden rule - borrow as little as possible, and pay it back as quickly as possible.


Provided you’re smart about it, a loan for £5000 can be a shrewd financial move and help ease cash flow problems. We can help you find the right £5000 loan for you, even if you’ve previously had bad credit.


Is a £5000 loan right for me?

People get loans for all sorts of reasons. Maybe a loan for £5000 will enable you to develop your career prospects. You might want to do a masters degree, get the car of your dreams, or perhaps you just need a new boiler and another cold shower is out of the question. Whatever your reasons, it’s essential that borrowing is always carefully budgeted for and you have a solid repayment plan in place. If overspending is your reason for needing a loan in the first place, that’s a red flag.

Don’t land your future self in cold water. Impulse buying is probably not in your best interest in the long run. But if you’re sure you want to take out a loan for £5000, you want to know you’re getting the best possible deal, that’s where we come in. Getting a loan can be confusing but we’re here to guide you through the process and hopefully make it a bit less stressful for you. 

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Choosing the right £5000 loan


The good news is that loans have never been as cheap as they are right now. Rates have plummeted over the past couple of years due to a low base rate combined with price wars between competitive lenders. Time to pop open the Champers and head down to the Spanish Riviera, right? Not quite. Even loans with low interest rates can have hidden costs. To avoid needlessly spending money in the long run it’s worth making a few key decisions. We know, it sounds like hard work. But we’re here to make it as easy as possible to digest, so you can get the loan that’s right for you.

To avoid putting pressure on yourself and your finances, it’s always better to borrow only what you can comfortably afford to repay. Borrowing too much can lead to debts spiralling out of control and bad credit is no fun at all.

While borrowing over a longer period can spread the repayment out so the monthly repayments are less, it can massively increase the interest you’ll pay overall. For instance, borrow £5000 at 13.9% APR, and repay over two years and your monthly repayments will be around £240 and the total you’ll pay back is £5712. But pay it pack over seven years and your monthly repayments are £99, but the total you’ll pay back rockets to £8284

Beware of representative rates

Always remember, advertised loan and credit card rates are representative. Your actual rate will be tailored according to your unique credit history. In fact, only 51% of successful loan applicants get the advertised rate.

It’s worth doing a bit of research first. Unfortunately, the only way to find out if you’ll be able to get the advertised rate is to apply. Beware that if you do already have a bad credit rating and are rejected it leaves a search on your credit file and could impact your ability to get credit in the future. Whilst not directly having a negative impact, the fact that you made an application will show up as a footprint. It’s therefore a good idea not apply to a huge number of places at once as lenders can see these footprints and may become concerned that you may have financial difficulties or you might be committing fraud. It’s important that if you are refused credit, you find out why before making another application to avoid being turned down soon after for a second time. 

If you feel lost at sea looking for the right £5000 loan, you’ve just caught sight of land! All you need to do is work out the amount you need to borrow and the term you want to borrow it for. We’ll do all the leg work for you and provide you with a list of the best value options available to you. Super simples. So get going and see how much you can save! 

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