118 118 Money offers loans of between £1,000 and £5,000. It considers applications from people with patchy credit histories who may struggle to get approved for a standard loan. Still, it will only approve your application if it thinks you can afford the repayments.
You could get the money in your account within a couple of hours if your application is successful.
Unlike some lenders, 118 118 Money also has a mobile app that can help you manage your loan and your repayments.
» MORE: Best loans for bad credit
Nerdy Tip: As with any loan, it’s sensible to only borrow what you need and pay it back as quickly as possible, based on what you can comfortably afford to repay each month. Before applying for a bad credit loan, it’s important you consider your alternatives and whether you could keep making the payments if an unexpectedly high bill landed on your doorstep or you lost your job, for example. Missing payments will make an already bad credit score worse.
Other loans may be available in the UK loans market that are not included in this service.
118 118 Money Personal Loan
1 to 3 years
£1,000 to £5,000
49.9%
No
Representative APR 49.9%. Based on a loan of £2,000 over 24 months at an interest rate of 41.2% p.a. (fixed). Monthly repayments of £123.64. Total amount payable £2,967.43.
- Must be between the ages of 18 and 70
- Must have a minimum yearly income of £8,400
- Must be employed or self-employed
- Must be a UK resident and hold a current UK bank account and debit card
NerdWallet has partnered with Monevo who will check your eligibility.
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Important information: Neither the review or star ratings considered lending rates, and therefore does not reflect how much it costs to borrow from these lenders. Loans for bad credit consumers can come with very high interest rates. Always check and compare a lender’s rates against others on the market when considering a bad credit loan. The rate you are offered will be dependent on your circumstances, loan amount and term, and may differ from the advertised rate. If you have poor credit, only borrow if it is necessary and you can comfortably afford repayments.
118 118 Money loans pros & cons
Pros
- You could get the money in your account within a couple of hours.
- 118 118 Money has a mobile app that you can use to manage your loan.
Cons
- 118 118 Money will apply interest charges if you want to pay off your loan early.
- You can’t apply for a joint loan.
The pros and cons featured here are chosen by us based on a combination of our expert opinions from our research of the bad credit loans market and an exclusive survey of UK consumers conducted on behalf of NerdWallet UK in February 2023 to identify the features of bad credit loans that people feel are most important. They are not the only product features and restrictions that you should consider. You should align them to your personal circumstances. Information was correct at the time of publication but may have changed since. Rates have NOT been considered in our review of this product.
118 118 Money loans overview
118 118 Money provides credit cards and unsecured personal loans of between £1,000 and £5,000. You can use a 118 118 Money loan to cover a range of costs, including emergency expenses or a large purchase, such as a car.
You can use a 118 118 Money loan to cover a range of costs, including emergency expenses or a large purchase, such as a car.
| Amount borrowable | £1,000 to £5,000 |
| Term length | One to three years |
| Time to get a decision | Usually within 60 minutes |
| Time to receive funds once approved | Within two hours |
| Customer support | Phone, email, app |
Before you apply for a loan, it’s worth using a loan eligibility service. This can help you to see how likely you are to get a loan from different lenders, without affecting your credit score. Make sure you check that it only uses soft searches and how many lenders it compares.
Where 118 118 Money loans stand out
You could get your money within two hours
Once 118 118 Money approves your application it says you could get the funds within two hours or, in some cases, as little as 15 minutes. This is quicker than several lenders we’ve reviewed who could take a day or more to transfer the funds.
You can manage your loan on a mobile app
118 118 Money has a mobile app that you can use to manage your loan. For example, you can manage your direct debits, make payments and request an early settlement figure. The app also has a chat function, which can be useful if you need to speak to the customer support team.
Where 118 118 Money loans fall short
Interest charges apply if you settle your loan early
Like many lenders, 118 118 Money applies interest charges if you want to pay off your loan early. Depending on your loan term, you may need to pay 28 days’ or 58 days’ interest. But even with these charges, you could still save money on interest by settling your loan early.
You can’t get a joint loan
You can only apply for a loan from 118 118 Money as an individual. You can’t apply jointly with a friend or family member.
What type of loans does 118 118 Money offer?
Bad credit loans
118 118 Money says it considers applicants with less-than-perfect credit histories, so you may be eligible for a loan if you have a bad credit score. However, 118 118 Money will only approve your application if it believes you can afford to repay the loan in full, after assessing your income and overall financial situation.
When you apply for a loan from 118 118 Money, you’ll need to provide some key details, including your employment details and monthly income.
You should only apply for a loan if you’re confident that you’ll be approved. All credit applications are recorded on your credit history and could affect your score, which may make it more difficult to get credit in the future.
Before applying for a loan, it’s also worth considering if it’s the right decision for you. Depending on your situation, it may be better to try to improve your credit score first or contact a debt charity for professional advice.
» MORE: Best bad credit loans
Joint loans
118 118 Money doesn’t offer joint loans, so you can only apply for a loan as a single applicant.
Other lenders can offer joint loans, so you may want to consider these if you’re looking to apply for a loan with another person.
Am I eligible for a 118 118 Money loan?
To qualify for a loan from 118 118 Money, you need to:
- be a UK resident
- be between 18 and 70 years old
- be employed or self-employed
- earn at least £700 a month (after tax and other deductions)
- have a UK bank account and debit card
This is the minimum criteria set by 118 118 Money. If you meet these requirements, 118 118 Money will look at your overall financial situation and your credit history to make a final decision on whether to offer you a loan.
118 118 Money loan features review
The features of a loan from 118 118 Money are similar to other bad credit loans.
Making payments
Like most loans, you repay a 118 118 Money loan in fixed monthly instalments for the agreed term.
Once you’ve made the first repayment on your loan, you can contact 118 118 Money if you want to change your payment date to one that suits you better. Before asking to change the date of your repayments, make sure you check if it will affect the amount of interest you pay in total.
Overpayments
If you have the money to spare, you can make an overpayment on your 118 118 Money loan without needing to pay any charges. This can help you to clear your debt faster and pay less interest overall.
Before making an extra payment, it’s always worth checking if there are any limits on the amount you can overpay at a time.
Paying off a loan early
118 118 Money won’t charge a fee if you want to pay off your loan in full before the end of the term.
However, it may apply up to 28 days’ interest if your remaining loan term is up to 12 months, or up to 58 days’ interest if your loan term is longer than this. Many lenders apply these charges if you want to settle your loan early.
Even with these interest charges, you should pay less interest overall than if you continued to make your payments as normal.
» MORE: Paying off a loan early
Additional borrowing
You can’t have more than one loan at a time with 118 118 Money.
You may be able to have more than one loan with other lenders, but you should always think carefully about whether borrowing more is the best decision before applying for a further loan.
Customer support
There are several ways you can contact 118 118 Money, including by phone and email.
If you prefer, you can also contact the lender and manage your loan via its mobile app. For example, through the 118 118 Money app, you can make payments, view statements and request a settlement quote to pay off your loan early.
The app also has a live chat function where you can speak to a member of the customer service team.
Customer ratings
On Trustpilot, 118 118 Money has an ‘Excellent’ rating based on more than 44,000 reviews.
Bear in mind that this Trustpilot rating is for all of the services offered by 118 118 Money, not just their loans.
This information is correct as of 4 September 2024.
Help if you’re struggling with debt
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
If you are struggling with debt, you can seek advice from a debt advice service, such as:
- Citizens Advice
- MoneyHelper (formerly The Money Advice Service)
- National Debtline
- StepChange
- The Money Charity
118 118 Money loans FAQs
Once your application is approved, 118 118 Money will call you to confirm some details. After this, it typically transfers the money to your account within 15 minutes to two hours.
118 118 Money isn’t a payday lender. It is a lender that offers unsecured personal loans.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
You can view our full review methodology here.