- Personal unsecured loans - These are usually for smaller amounts of money. Since you’re not using any of your assets, such as your home or car as a guarantee that the lender could sell to get their money back it if necessary, you’ll usually pay a higher interest rate than you would with a secured loan.
- Homeowner secured loans - These are generally for larger amounts of money than £1,000. 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 repay, your home can be repossessed. You might be asked to pay an arrangement fee, and when you are doing your sums you'll need to add this in to the overall cost.
- Guarantor loans - If you have a poor credit rating, 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 can be a way to get lower interest rates.
- Payday loans - These unsecured loans don’t require you to pledge something valuable like you home, which can be sold if you don't keep up your payments, so can have 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. They are typically for larger amounts than payday loans.
Before you compare £1,000 loans, work out how much you can afford to pay back each month. Missing repayments and even paying late can damage your credit record, and if you can’t repay your loan you risk being taken to court.