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Compare £1,000 loans

Compare £1,000 loans

Many of us have had to take out a small, short-term loan at some point in our lives. Whether it’s to fix the fan belt on the car, see us through the expensive Christmas period, or book that much-needed holiday – we’ve all turned to a bank, online lenders or a generous relative for some financial help. 

Anelda Knoesen
From the Money team
3
minute read
posted 22 NOVEMBER

When can a £1,000 loan help?

When funds are limited, time is short, and you’re faced with one of life’s unexpected emergencies, like a broken washing machine, car repairs or home improvements, a low interest £1,000 loan can make all the difference. 

You have some options, so let’s go through them…

What types of loans are there?

A £1,000 loan is usually the minimum amount most lenders will offer as a loan. If you want to borrow less than this, you may be better off using a credit card to buy something, particularly if you can get one with an interest-free deal on purchase credit cards. If you’re looking for a loan, there are several different sorts available. 

  • 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. 

Can I get £1,000 loan with a bad credit rating?

Yes. If you have a bad credit history, whether for falling behind on repayments in the past, or never having borrowed money before, you can still get a loan. You may need to pay a higher rate of interest though as you are more of a risk.

How can I compare loans quickly and easily?

Trying to find and compare the merits of numerous lenders can take a while. Luckily, we can help you with our simple comparison service.

It lets you quickly compare information such as provider, product, representative APR, total amount repayable and monthly repayments, to find the £1,000 loan that’s right for you quickly. 

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