Check whether you’re eligible for loan rates as low as 5.9% (representative 10.3% APR^)
Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.
^Representative example: Borrowing £7,500 over 48 months on a personal loan at a fixed interest rate of 10.3% p.a. results in monthly payments of £191.30 and a total repayable of £9,182.48. Representative 10.3% APR (fixed). Correct as of September 2026.
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3 Correct as of October 2026.
Use our free eligibility checker to view personalised results
See loans from a wide range of lenders
Loans available from £1,000 up to £250,000
To get an idea of how much a loan could cost you, use our loan calculator.
You can use it in one of two ways:
If you know how much you want to borrow: you can adjust the loan term (the length) and APR (the total cost of borrowing over a year, including interest and any fees) to see how much your monthly repayments could be.
If you know how much you can afford to repay each month: you can adjust the loan term and APR to see how much you could potentially borrow.
A loan is a lump sum of money that you borrow from a lender. When you take out a loan you agree to pay back what you borrow, plus interest, in monthly instalments over an agreed period until the loan is paid off.
The interest on a loan is worked out as a percentage of the loan balance and added to the monthly repayments. Lenders decide what interest rate to charge you based on factors including your credit score and how long you’ll take to pay back the loan.
A loan could be useful if you need to borrow a larger amount of money upfront than you could get through other types of borrowing.
You can take out a loan to cover all kinds of costs, as well as to consolidate existing debts. Some of the most popular reasons include a:
Unsecured personal loans can be used to cover large, unexpected bills.
Ideally, you’d use your savings to pay for a holiday. But if you’re planning the trip of a lifetime, you might want to top up your savings with an unsecured holiday loan.
The best day of your life can come with a big price tag. A wedding loan could help you spread the cost.
You can finance buying a car in different ways. You could look at a car loan, which is unsecured. Or you could consider a hire purchase (HP) or personal contract purchase (PCP) loan, which are both secured against the vehicle you’re buying.
Thinking of a new kitchen or bathroom, or building an extension? A home improvement loan could help pay for your project. These loans can be secured or unsecured.
A debt consolidation loan can bring all your debts together into a single loan with one payment plan.
A short-term bridging loan could let you buy a new home while you wait for the sale of your old one to complete.
The best type of loan for you will, of course, depend on your personal situation and what you need the cash for – but these are some of the main types you can choose from:
With a personal loan (also known as an unsecured loan), you can borrow without putting up an asset as security.
Personal loans typically range from £1,000 to £25,000, but you can compare personal loans of up to £50,000 with Compare the Market.
With a secured loan, you need to offer an asset as security. In the case of a homeowner loan, that’s your house. If it’s a secured car loan, it’s your car. Your home may be repossessed if you do not keep up repayments on a loan that is secured against it.
A small loan is often paid back over a short period of time, usually within a year. You can typically borrow up to £3,000.
A bad credit loan is specifically aimed at borrowers with a poor credit score or no credit history. This type of loan usually has a higher interest rate and tighter restrictions, such as a lower borrowing limit.
A guarantor loan involves someone agreeing to make the loan repayments if you can’t. This could be an option if you have bad credit or no credit history.
You can’t compare guarantor loans with Compare the Market.
Never rush into taking out a loan. Think carefully about whether borrowing is the best option for you.
If you want to go ahead and apply for a loan, take time to work out what you can comfortably afford to repay (our loan calculator can help with that).
Consider how a change in your circumstances might affect your ability to repay. And remember that not being able to pay back your loan on time can have serious financial consequences.
The cost of a loan depends on:
Your credit score – this shows how well you’ve managed borrowing in the past. Lenders use it to help decide whether to offer you credit and what APR to charge
Your income – how much you earn
The loan amount – it’s generally best to borrow only what you need. The more you borrow, the more interest you’ll pay overall
The loan term (length of time you repay it over) – the longer the term, the more interest you’ll pay in total, although your monthly repayments may be lower
Affordability – whether the repayments look manageable alongside other costs.
Use our loan calculator to work out how much a loan could cost you.
Repaying over a longer term means smaller monthly payments but more interest overall.
Here’s how a £5,000 fixed-rate personal loan compares when repaid over 2, 3 or 4 years, assuming no extra fees (based on Compare the Market's representative 10.3% APR^).
Loan term | Monthly repayment | Total interest | Total amount repayable |
|---|---|---|---|
2 years | £230.36 | £528.73 | £5,528.73 |
3 years | £160.97 | £794.88 | £5,794.88 |
4 years | £126.44 | £1,069.00 | £6,069.00 |
Illustrative example: Priya’s bathroom loan
Priya needs £5,000 for a new bathroom. She has savings but wants to keep an emergency buffer, so she’s considering a personal loan. She has a job and a fair-to-good credit score, and can afford to set aside around £200 a month.
Monthly repayments on a two-year loan would cost more than her £200 budget. Borrowing over four years would give her the cheapest monthly payments but cost about £540 more in interest than a two-year loan (£6,069 vs £5,529).
She picks a three-year term as a compromise: manageable repayments at £161 per month (10.3% rep APR^, assuming she qualifies) and around £795 in total interest.
^Representative example: Borrowing £7,500 over 48 months on a personal loan at a fixed interest rate of 10.3% p.a. results in monthly payments of £191.30 and a total repayable of £9,182.48. Representative 10.3% APR (fixed). Correct as of September 2026.
Unsecured personal loans: typically paid back over one to 10 years.
Secured loans: often long-term loans, which can sometimes be paid back over 40 years.
Ensuring your credit report’s in good shape and error-free can help you access the best loan rates. You can check your credit report for free with the three main credit reference agencies – Equifax, Experian and TransUnion.
Work out how much you need to borrow before you start comparing loans. Remember the golden rule: don’t borrow more than you need.
Use our loan calculator to get an idea of how much your repayments might be. You can adjust the amount of the loan, its length, APR and potential monthly repayments to weigh up affordability.
Use our loan eligibility checker to see which loans you’re likely to be accepted for, without impacting your credit score.
Compare interest rates and terms on loans you’re likely to be eligible for. Choose the one that works best for you and apply.
It’s not guaranteed. Whether you’ll be accepted depends on a number of things, including:
Your credit score
Your income and existing debts
How much you want to borrow.
When you do a loan comparison with us, you can find out which loans you’re eligible for by answering a few questions. This is a soft credit check and won’t impact your credit score.
If you’ve previously struggled to get a loan or are worried about being accepted for the first time, here are some tips that could help you get accepted:
Build your credit score: if you have a low credit score, you could find it difficult getting approved for a loan or the best loan rates. Check what you can do to improve your credit score before you apply for a loan.
Check your eligibility: use our eligibility checker to see which loans you’re likely to be accepted for, without impacting your credit score. Only apply to lenders most likely to accept you.
Don’t apply to borrow too much: lenders will consider the affordability of your loan, taking into account your income and any existing debts. If you’re looking to borrow more than you can pay back, you’re likely to be turned down.
Double check your application: review all the information you’ve given before submitting your application. Watch out for typos as they could make the difference between you being accepted or rejected.
Space out loan applications: if you’ve been turned down for a loan or another type of credit, wait before applying again. Making multiple credit applications in a short amount of time could lower your credit score. It’s also a red flag to lenders who may think you’re having financial difficulties. Read our guide on what to do if you’re refused a loan.
Fraud is the most commonly reported crime in England and Wales, accounting for 41% of crimes reported in the year to September 2024 according to the National Crime Agency. Even the most financially savvy borrowers can be duped by loan fraudsters, so it always pays to be cautious.
If you think you’ve found the best loan possible at an unbelievable rate, remember the golden rule: if it sounds too good to be true, it probably is.
Here are a few things to watch out for:
Cold calls, texts or emails offering you a loan and asking you to reply or call back
Being asked to pay an upfront fee
Being asked to give out personal details
Being asked to pay quickly or unusually
Loan companies that are not authorised by the Financial Conduct Authority (FCA).
If you need to report a scam or suspected fraud, contact Action Fraud online or by phoning 0300 123 2040 (Mon-Fri 8am-8pm).
Typically, you’ll have to:
Be at least 18
Have a regular income (some lenders have a minimum income requirement too)
Be on the electoral register
Have a bank account.
Read our guide on how to get a loan for more information.
Managing your money while juggling everything else life throws at you can sometimes be tricky.
If you find yourself needing a quick cash boost to cover a surprise expense, or you want to fund something major such as a home renovation, a loan may help.
We have lots of information on what could be the best loan types for you. And our loans eligibility checker can give you an idea of which bank loans and other options you’re likely to be accepted for before you apply, without affecting your credit score.
Once you know which type of loan you need, shop around and compare our best loan deals to help you find the right one for you.
Loans aren’t your only option for borrowing. You might find that one of the following is more suitable for you:
0% purchase credit cards: these offer 0% interest on purchases made within a set period. Ideally, you’ll need to repay in full before your 0% period ends and you should always keep up with the minimum monthly repayments.
Car finance: as well as loans, options can include hire purchase (HP) and personal contract purchase (PCP).
0% overdrafts: a few bank accounts let you go overdrawn in the short term without paying any fees or interest. This isn’t usually the case for student or graduate accounts, though.
How long it takes to get a loan depends on the lender, its application and approvals process, and the type of loan you’re applying for.
When you apply for a loan, lenders check your credit score and review your application. This could take anything from a few hours to a week or more. Once you’re approved, many lenders can have the funds in your account within a few days. Some even say the same day, if your application is accepted.
Some lenders offer fast turnaround times – for payday loans, for example. But these types of loans tend to be very expensive compared to other types of borrowing.
You can’t compare payday loans with Compare the Market.
It depends on the provider and the type of loan you take out:
Unsecured personal loans are typically paid back over one to 10 years.
Secured loans are often longer-term loans, which can sometimes be paid back over as long as 25-40 years.
Our data shows that the average length of a home improvement loan is 58 months. For debt consolidation the average is 57 months, while a loan used to pay for a wedding is paid back over an average of 52 months4.
Searching for a loan with Compare the Market won’t affect your credit rating. But each formal application you make for credit will be marked on your credit file.
If you make several applications over a short period, lenders could see this as a sign that you’re in desperate need of a loan or that you’re taking on more debt than you can afford.
Usually not. Most personal loan providers don’t let you use the money for a house deposit, and many mortgage lenders will reject your application if your deposit is funded by a personal loan.
Mortgage lenders carefully assess your affordability to make sure you can afford the repayments on your home. If you’re paying interest on a loan for the deposit on top of your mortgage repayments, you’ll likely be considered higher risk. That means if you are accepted for a mortgage, it’s likely to be more expensive.
With a secured loan, you need to use a valuable asset – usually your home – as security to borrow money. You don’t have to offer up anything as security for an unsecured loan.
Your home may be repossessed if you do not keep up repayments on a loan that is secured against it. This makes an unsecured loan less of a risk for you, but for the lender it's the opposite. To reflect this, you can usually borrow less with an unsecured loan and it’s typically repaid over a shorter period.
Read more on the differences between unsecured and secured loans.
APR represents the cost of borrowing over 12 months. It includes any fees that come with the loan and the interest payable. APR stands for annual percentage rate.
If you have a loan with a variable APR and the Bank of England base rate increases, so could your APR. If this happens, your loan repayments will become higher.
If you have a fixed-rate loan the APR will remain the same, even if the base rate goes up.
A representative example shows how much borrowing could cost. It includes the representative APR and must be shown in loan adverts that include an interest rate or other cost figures.
But it only needs to be offered to 51% of successful applicants, so the rate you actually get could be more or less, depending on your circumstances.
It depends on your loan agreement. Although providers must allow you to pay back personal loans in full, there may be fees for early repayments or overpayments.
Read more on repaying loans early.
If you’re struggling to repay your loan, get in touch with the loan provider. You may be given more time to make the payment.
If you miss a payment or make a late payment, the lender may add extra charges and interest to your loan. The lender can also take legal action or pass your debt to a collection agency.
Missed payments will also be noted on your credit report, which could harm your credit score and make it harder for you to borrow in future.
If you need help with debt, organisations including Citizens Advice and StepChange Debt Charity can offer free non-judgmental advice.
Borrowing from your bank isn’t necessarily the best option. Your bank will usually be willing to lend you money if you have a good credit history and hold a current account with it. But that doesn’t automatically mean its borrowing terms are right for you.
It’s a good idea to check your eligibility for different loans with a loan comparison service such as ours. You can then compare the interest rates, costs and features available and find the option that best suits your needs and budget.
If you’ve been turned down for a loan or another type of credit, wait before applying again.
Making multiple credit applications in a short amount of time could lower your credit score. It’s also a red flag to lenders who may think you’re having financial difficulties.
Read our guide on what to do if you’re refused a loan.
A loan could be a good fit for a big, one-off cost. You borrow a set amount and pay it back in fixed monthly instalments, so you always know what’s due and when the loan will be paid off.
A credit card may be better for smaller or everyday spending. You can spend as and when you need to (up to your credit limit). And a 0% purchase card could mean no interest on new purchases if you clear the balance before the 0% offer ends (as long as you make the minimum repayment each month).
If you don’t pay off what you owe within that time, you could end up paying more in interest than you would with a loan.
Even the most financially savvy borrowers can be duped by loan fraudsters, so here are a few things to watch out for:
Cold calls, texts or emails offering you a loan and asking you to reply or call back
Being asked to pay an upfront fee
Being asked to give out personal details
Being asked to pay quickly or unusually
Loan companies that are not authorised by the Financial Conduct Authority (FCA).
If you need to report a scam or suspected fraud, contact Report Fraud online or by phoning 0300 123 2040. In Scotland, contact Police Scotland on 101.
1 Correct as of October 2026.
2 Correct as of July 2026.
What our expert says...
“Before applying for a loan, take a few minutes to make sure it’s right for your budget. Check what the repayments will be each month, how much you’ll pay back overall and whether you could still afford the loan if your circumstances changed. It’s also worth checking your credit report for any mistakes.
“A little preparation can improve your chances of being accepted and help you borrow with confidence.”