Guide to £15,000 loans
Learn more about £15,000 loans and compare your options before diving in.
- Lenders may check your credit score before approving your loan
- APR isn’t the same as the interest rate
- Shop around to find the right loan for you
At some time in our lives, most of us need a helping hand with our finances.
You may have accumulated some debts which would be easier to manage if you just made one payment a month. Or maybe you need a new kitchen.
Whatever the reason, if you decide to take out a loan, it’s important to get the right one for your circumstances, and one you can afford the repayments on.
Where to find an unsecured loan for £15,000
In the good old days you’d go to your bank if you wanted finance. But now you only have to hit the search button on Google, and your screen's filled with hundreds of companies competing for your business.
A sensible option is to compare loans using a comparison site. That way, you’ll be able to compare rates and monthly repayments all in one place.
Taking out a loan
The amount you’ll be allowed to borrow will depend on a number of things like your income, your ability to make the repayments, and your credit score.
Even if you’re a straight-A student credit history wise, if a lender thinks you won’t be able to make the repayments, they won’t lend you the cash.
Your credit history is, in essence, your track record of paying bills and loans such as mortgages. Companies are more likely to lend you money if you show them you pay what you owe back and on time.
If your credit score is low, the average loan provider may not want to give you any money. You may have to use a company that deals specifically with poor credit history. Unfortunately, this usually means you’ll have to pay a higher interest rate on any money you borrow.
How long does it take to get a £15,000 loan?
Beware those adverts which claim you can get a decision in minutes. Usually, you’ll need to undergo a credit check, especially if you want to borrow a substantial amount like £15,000.
The application process will also include verifying things like how long you’ve lived at your current address, who your employer is and what your income and outgoings are.
The process typically takes anywhere between a day and a week.
If you’re approved for a loan, your interest payable will depend on a number of factors like your credit score, how long you take the loan out for and which lender you choose.
Lenders must tell you what the APR or annual percentage rate for your loan is before you take it out. The APR isn’t just the interest rate you pay on a loan; it includes the interest rate and any charges you'll have to pay, like an arrangement fee.
Repaying your £15,000 loan
You’ll agree the way in which you’ll make loan repayments with your lender. If you earn more than a Premiership footballer and have relatively low outgoings, you may choose to take a loan out for a shorter time. Remember though, the longer your loan period, the more you'll be paying back.
You can pay your loan back early, but you may have to pay an early repayment charge. You can find out how much this will be in your loan documentation. Lenders can charge you up to 58 days' interest for early repayment.
Can I get a £15,000 loan for a one-off purchase?
Yes, you can get a standard unsecured loan to buy a one-off purchase – for instance, a car. Alternatively, you could get specialist car finance.
Check the interest rates on different types of loan to see which will cost you less in the long run. It’s also worth checking whether a car loan will be secured on the car. If it is, the car won’t be yours until you pay the loan off, similar to the way a house isn’t yours until you pay your mortgage off.
Make sure you don’t just skim those terms and conditions – it’s best to know exactly what you’re getting into before you sign on the dotted line.
How can I get the right deal?
If you do commit, it’s essential to shop around to get the right loan for you. Here at GoCompare, you can compare loans from multiple providers without it affecting your credit record by using our smart search. It will show how likely you are to be accepted for certain loans.
Don’t be tempted to get a bigger loan than you need - it’ll cost you more in the long run.