Compare Unsecured £25,000 Loans

The time it takes the lender to approve an application and release the funds will depend on the lender and how you apply. You may get approval for an unsecured loan just a few minutes after you apply, or it may take a few days.

If the loan is with a bank, already being a customer may speed things up, along with applying online and making sure you supply the correct paperwork.

Once your application has been accepted and you’ve signed the agreement, the funds may be released into your chosen bank account in anything from a couple of hours to a few days.

Avoid rushing into borrowing what is a large amount of money without taking the time to compare lenders. You’ll want to make sure that your monthly payments are affordable and you’re clear about any fees and charges. You may also want to consider the reliability of the lender and what their current customers say about their customer service on review sites.

To borrow as large an amount as £25,000 unsecured, you will generally need to have a good credit score. Some lenders will accept borrowers with a poor credit score, but you may be charged higher rates of interest and have fewer products to choose between.

You may want to consider improving your credit score before applying for a loan, to access better rates and improve your chances of being accepted.

Lenders will usually specify that a personal loan can’t be used for a business. Instead, you may want to consider a business loan. If your business is new or ready to launch, a startup business loan is a personal loan that, in some cases, is government-backed and available up to £25,000.

You will usually pay a loan monthly, by direct debit, from your bank account. Personal loans charge a fixed rate of interest, which means repayments are predictable and set up to leave your account automatically for the duration of the loan.

If you want to make overpayments or pay the loan off early, some lenders charge an early repayment fee. This is to make up for the interest they lose when a loan term is cut short. The terms of the loan should make these charges clear, but contact your lender before going ahead with overpayments if you’re unsure. And if this flexibility is important to you, you may want to seek out a lender that doesn’t penalise early repayment.

If you don’t think you can afford repayments at any point during the term of the loan, don’t delay. Contact your lender, who should make efforts to work out a plan that may help you repay the loan in an affordable way. Otherwise, if you don’t get in touch and you miss a few payments, the lender may assume you have defaulted and take action for repayment and missed payments may harm your credit rating.

If you are looking to borrow a larger sum than £25,000, you will usually need to take out a secured loan. For the lender, this helps reduce the risk of lending a significant amount of money. However, the risk to you, as the borrower, is that the asset, which might be your home, may be at risk if you can’t make repayments.

It’s important to only borrow what you need, and what you can afford to pay back.

Once you have your personalised quotes and have applied directly with the lender, the lender will run a hard credit check. This is a complete search of your credit history and will show on your credit record. While a few factors affect your credit score, it’s important not to apply for a number of loans in a short space of time, as this can make it seem like you’re looking for loans that you may not be able to pay back.

If you meet your loan repayments in full and on time, it will usually have a positive impact on your credit score. That’s because it shows a lender that you’re less of a risk to lend to, as you have a proven history of paying what’s due. So if you have a poor credit score, a loan can actually help improve your score in the long run.

If you are late with repayments or the loan falls into default due to missed payments, it can have a negative impact on your credit score and reduce your chances of being accepted for future credit. A loan default can stay visible on your credit report for as long as six years.

You can help reduce the impact of missed payments by paying what you owe as soon as you can.

Unsecured personal loans charge a fixed rate of interest. With a fixed rate of interest, the amount of interest you pay will stay the same each month, for the entirety of the loan. This means predictable monthly payments, which can make budgeting easier.

There are lots of reasons why someone takes out a personal loan. It could be for debt consolidation, to buy a new car, carry out home renovations, or to cover the cost of a wedding.

Even so, there are some uses a lender won’t agree to. This may include using a personal loan for a business, investments and gambling, or buying a property. Always think carefully before going ahead with a loan, and consider other borrowing options that might cost you less. These might include a 0% credit card for small amounts you pay off quickly, a second charge mortgage if you are a homeowner, or using an alternative lender, such as a credit union.

Your ultimate decision should be based on which type of loan meets your needs best and you should consider all the implications of alternative borrowing. For instance, securing debts against your home with a secured loan or the risks associated with using more than you can afford on credit cards.

Yes, it’s always possible for a lender to refuse a loan application. This could be for a number of reasons, such as having a poor or limited credit history, not having regular employment, or because the lender doesn’t think that the loan would be affordable for you. Even a mistake on the application form can lead to an unsuccessful application. Or you may just not meet the eligibility requirements.

If you are refused a loan, the first step is to find out why, and what you might be able to do to improve your chances. One way could be to improve your credit score. Though being rejected for a loan doesn’t mean you won’t be able to get another loan elsewhere, avoid applying for a number of loans in a short space of time, as this can harm your credit score.

Yes, it’s usually possible to repay a loan early. However, you may need to pay an early repayment fee. This is because you will be cutting your loan term short and reducing the amount of total interest the lender will get.

Check your credit agreement to find out what the early settlement penalty will be before going ahead. The exact amount you will pay will depend on the lender, how much you’ve already paid and how much is left to pay, as well as how long is remaining on the original term.

You may be able to make partial overpayments rather than pay the amount in one go, depending on your loan agreement. There may be a cap on how much these are, and other conditions attached.

If repaying the loan early is important to you, look for lenders that don't charge a penalty.