Personal Loans

Everything you need to know about personal loans in the UK — how they work, what to compare, and when a personal loan is and isn't the right choice.

⚠ Risk note

Personal loans are a form of debt. Only borrow what you can afford to repay. Missing repayments can damage your credit score and result in charges.

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Personal Loans: Understanding Finance Options, Risks & More

A complete UK guide to personal loans: understanding finance options, risks & more. Plain English, no affiliate links, no financial advice.

8 MIN →

Guides on this topic All guides →

low risk

Personal Loans: Understanding Finance Options, Risks & More

A complete UK guide to personal loans: understanding finance options, risks & more. Plain English, no affiliate links, no financial advice.

8 MIN →

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Loan Interest Rates: Everything You Need To Know

A complete UK guide to loan interest rates: everything you need to know. Plain English, no affiliate links, no financial advice.

7 MIN →

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Direct Lender vs Broker - Different Loan Options

A complete UK guide to direct lender vs broker - different loan options. Plain English, no affiliate links, no financial advice.

6 MIN →

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Early Loan Repayment: Evaluating the Pros and Cons

A complete UK guide to early loan repayment: evaluating the pros and cons. Plain English, no affiliate links, no financial advice.

6 MIN →

high risk

Guarantor Loans: What to Know Before You Apply

A plain-English UK guide to guarantor loans. Covers how they work, the risks for both borrower and guarantor, alternatives, and where to get free help.

7 MIN →

Related situations All situations →

I'm new to credit → I have bad credit → I want to understand the real cost of borrowing → I want to understand loan types →

Tools & calculators

Tool

Borrowing Affordability Checklist

A structured checklist to run through before applying for any loan — to make sure you have considered the risks.

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Tool

Loan Repayment Calculator

Working out how much your monthly repayments will be for a given loan amount, APR and term.

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Key terms Full glossary →

APR (Annual Percentage Rate) The Annual Percentage Rate shows the total cost of credit per year, including fees and int… Hard search (hard credit check) A full credit check that leaves a record on your credit file visible to other lenders. Mul… Representative APR The rate that at least 51% of successful applicants receive. It's a legal minimum in adver… Soft search (soft credit check) A credit check that doesn't leave a mark on your credit file visible to other lenders. Use… Unsecured loan A loan not tied to any asset. If you default, the lender cannot automatically seize proper…

Common questions

What is the difference between secured and unsecured loans? +

An unsecured personal loan is not tied to any asset — the lender has no automatic claim on your property if you miss payments. A secured loan uses your home or another asset as collateral, which means lower rates but higher risk if you cannot repay.

What does representative APR mean? +

The representative APR is the rate at least 51% of successful applicants receive. You may be offered a higher rate depending on your credit profile. Always check the rate you are personally offered, not just the headline figure.

Is it better to use a lender or a broker? +

Brokers can search multiple lenders in one go and often use soft searches, reducing the impact on your credit file. Lenders only show their own products. Either way, compare the total repayable amount, not just the monthly payment.

Can I repay a personal loan early? +

Usually yes, but most lenders charge an early repayment fee — typically one to two months' interest. Check the terms before applying if you think you might want to repay early.