You will need to:

  1. Know how much you want to borrow

  2. Shop around for the lowest interest rate

You should also check your credit record is accurate and up to date before you apply.

Decide how much you need

You could borrow between £1,000 and £25,000 with a 12 month loan, but you will need to show that you can afford the monthly payments.

Look for the lowest rate

The interest rate is the main factor that dictates how much your loan will cost, so when you know how much you want to borrow, shop around to find the cheapest rate.

This comparison shows the representative APR of each loan. However, the rate can vary for different loan amounts.

The representative APR includes all of the standard costs of getting a loan, so check you are getting the lowest advertised rate you can find before you apply.

Check you can afford the loan repayments

Paying back your loan over just 12 months may keep the overall cost down but it will also make your monthly payments higher.

Use our loan repayment calculator to see how much you would have to pay back each month if you borrowed over a 12 month period.

Once you know how much the monthly payments could be draw up a budget to check if you can afford them.

If you are unsure if a 12 month loan is the right option, but want to avoid a longer term loan, you could consider a 0% money transfer credit card or overdraft instead.