1. Work out what you need
Decide the exact amount and the shortest term you can comfortably afford. Borrowing more than you need adds interest for no benefit.
2. Check your credit report
Look at your file with Experian, Equifax and TransUnion. Fix errors and make sure you are on the electoral roll at your current address.
3. Choose the right type of loan
- Unsecured personal loan for most amounts up to £50,000
- Homeowner loan for larger sums secured on property
- Car finance for vehicles
- Business finance if the money is for a business
4. Check eligibility with a soft search
Soft searches show likely approval and a personalised rate without affecting your score.
5. Compare the total cost
Compare the total amount repayable and any fees, not only the APR or monthly payment.
6. Apply for one loan
Submit a full application only for the offer you intend to take. This keeps hard searches to a minimum.
7. Read the agreement before signing
Check the rate, term, total repayable and early repayment terms. On regulated loans you have 14 days to change your mind.
Common questions
How long does it take to get a loan?
Unsecured personal loans can be paid within one to two working days of approval. Secured loans take longer.
What do I need to apply?
Proof of identity and address, details of your income and outgoings, and your bank details.
This guide is general information, not personal financial advice. If you are worried about debt, free help is available from MoneyHelper, StepChange and Citizens Advice.