A simples guide

Low Interest £1000 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 dodgy 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 lender or, at a pinch, a generous relative.  

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What’s a personal loan?

Personal loans are also known as ‘unsecured’ loans because they’re not backed by collateral such as your home or car. Instead, lenders will use your credit score to decide whether to give you a loan.

Personal loans typically range from £1000 to £25000 and the interest rate is usually fixed and you pay it back over a set term – usually one, three or five years.

So why would you get a £1000 loan?

When funds are limited, time is short, and you’re faced with one of life’s unexpected emergencies, like that pesky broken boiler, a £1000 loan can make all the difference.

If you’ve exhausted the generosity of family and friends, and don’t have enough savings, a personal loan for £1000 is a great alternative. And it comes with perks:

- Your personal loan repayments will be fixed

- You can choose how long you’d like to repay the loan

- You can also consolidate several existing debts into one loan - reducing your monthly repayment costs

A personal loan is an easy way to get hold of money, fast. But don’t get carried away - it’s a temporary solution. Never borrow more than you can afford.

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Can I get £1000 loan with a bad credit rating?

Yes, believe it or not. There are some people who, because they’ve never borrowed any money or had a credit card, for example, have not been able to build up a good credit history. If you fall into this category, kudos to you for managing your money so well. In this case, you can apply for a £1000 loan for bad credit.

Guarantor Loans

A guarantor loan is a type of bad credit loan that requires you to have a guarantor to guarantee the loan payments – a generous person who’s willing to meet your repayments if you find yourself unable to.

This reduces the risk for the lender, meaning they’ll be able to offer you lower interest rates than you could get elsewhere.

Instalment loan or a payday loan?

Either can give you a quick cash boost when you need it. But they’re very different models, so you might want to think about which suits your circumstances better. Let’s take a look:

Payday loan

Payday loans provide a short-term solution to cash shortfalls. They’re unsecured loans, meaning no collateral is required to secure one, but the downside is the 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.

Instalment loan

Instalment loans are repaid over a long period of time, so you get a better interest rate and are typically are for larger amounts than payday loans.

So which should you choose?

If you need a £1000 loan with flexible terms, and you’re unable to pay the loan off straight away, you may prefer an instalment loan.  

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Want to take the headache out of hunting?

The loan application process for £1000 loan is one thing, but trying to find and compare the merits of numerous lenders can be another huge headache. Why not let us do the legwork for you? With our handy comparethemarket.com best buy table, you can quickly compare information such as provider, product, representative APR, total amount repayable and monthly repayments, to find the £1000 loan that’s right for you in seconds. It’s simples! 

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