£20,000 loans

Compare £20,000 loans[1]

  • Check out all the different loan options before making a decision 
  • Make sure the monthly repayments are realistic for your budget
  • Use smart search to see how likely you are to be accepted before applying

Wads of £10 notes

Want to know more about £20,000 loans?

Read on to find out about the different types of £20,000 loans, what a smart search is and what you could do if you have poor credit.

Key points

  • It's possible to get unsecured, secured or peer-to-peer loans for £20,000
  • It’s not impossible to get a loan with bad credit, but it might be better to save up, to avoid more debt
  • If you use a smart search, you can view loans you’re likely to be accepted for, but this search won't appear on your credit history

Big commitments usually mean big prices. Home improvements, buying a car and going on holiday can cost a lot, so getting a loan might be something you’ve had to consider.  

If you can manage the money responsibly and afford the repayments, loans allow you to get things that you may not be able to afford with your regular income, or unless you spent years saving.  

There are many types of loans, but this article will focus on personal loans for £20,000. 

Unsecured personal loans for £20,000 

Personal loans, or unsecured loans, don’t require any collateral support, like your car or home. Lenders therefore have to base their decisions on your credit score.  


In April 2018, it's possible to get personal loans for between £1,000 and £25,000. Usually, the interest rate is fixed and repayment periods tend to be either one, three or five years.  

Getting an unsecured loan for £20,000 could prove tricky, and the interest could mean you pay back well over the amount you borrowed. So you might need to consider alternatives, like a secured loan.

£20,000 loan alternatives 

There aren’t many alternatives for borrowing such a large amount, but here are a few options and whether they’re available for £20,000 loans or not. 

A £20,000 secured loan uses a valuable asset, like your property, as collateral against the amount you want to borrow. Not keeping up with repayments could impact your credit score, and even risk the ownership of your home.  

Remortgaging is another alternative for large loans. But the downside to remortgaging is you may have to pay high upfront fees and you’ll likely be paying the interest back for longer.  

You can get a few peer-to-peer loans (borrowing from individuals instead of a bank) for £20,000, but the repayment periods tend not to last very long, meaning higher monthly repayments.  

The majority of guarantor loans range between £1,000 and £10,000, so they’re not widely available for amounts over that.  


Bad credit £20,000 loans 

It may surprise you to know that it's possible to still get loans if your credit score isn’t the best, even though it might not be for the most competitive rates on the market.  

They’re usually called 'bad credit loans', which just means a loan for someone with a poor credit score.  

Also worth researching would be credit unions. These not-for-profit organisations are usually more understanding and supportive than banks, although you’d need to be a member to qualify for a loan.  

If possible, you should probably try to avoid taking on extra debt. But if you’re sensible, you may be able to use a bad credit loan to your advantage, to help build your credit score back up. 

Consider: could family, friends or the government help? Would it be better to wait and get some savings together? How about taking out a smaller loan? 

Before taking out a £20,000 loan, think about all your options. You don’t want to make your financial situation worse by getting a loan you can’t afford or making failed applications. 

Soft searches and other things to consider 

We can’t stress enough that £20,000 is a lot of money to borrow, so do your research and shop around to find the deal that suits your circumstances. 

If you want to compare what £20,000 loans you could be eligible for, but don’t want to leave a mark on your credit record, you could try doing a smart search.  

See also:

Smart search does a soft credit check on you, which other lenders can’t see on your credit report.  

This allows you to view and compare what £20,000 loans you might be eligible for, without leaving an impact on your credit history.  

While large loans can be useful for paying off a wedding or making home improvements, don’t forget that mortgage lenders don’t tend to accept mortgage deposits that have been funded by a loan.  

Getting a loan isn’t the ideal solution to financial problems. But if you do decide to get one, make sure you can afford the repayments and manage the money responsibly.  

If you have any debt or other financial problems, talk to your lender to see if they can help, or contact Citizens Advice, National Debtline or StepChange Debt Charity for free advice. 

Last updated on 10 Apr 2018