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How to get the best loan in the UK

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Borrowing loans in the UK can be a difficult process and therefore you need to spend some time planning the road ahead. You may want to borrow a loan to invest in a revenue-generating asset or may even want to borrow one in order to deal with an emergency situation. Whatever your purpose of borrowing is, you may not always have the luxury of time to plan things well in advance, so the only way out is to stay informed.

Therefore, we have put together a comprehensive guide that elaborates and details the various types of loans in the UK. Our goal is to enable you to make an informed decision in all cases, whether it is a planned borrowing or an emergency. So, let's figure out your best borrowing options in the UK and how you can pick the best one in different scenarios.

FAQs on Loans in the UK

  1. How do I get loans in the UK?
  2. Who can lend loans in the UK?
  3. What are the eligibility criteria to borrow a loan in the UK?
  4. Where can I get cheap loans in the UK?
  5. Which is the best loan in the UK to buy a car?
  6. Which loans in the UK are suitable for consolidating debts?
  7. How can a full-time student get a loan in the UK?
  8. Can I get a loan in the UK despite a bad credit score?
  9. How to get an online loan in the UK?
  10. Do I have to be in full-time employment to get a loan in the UK?
  11. Is it mandatory to have guarantors to get a loan in the UK?
  12. Can I get a loan in the UK without a credit check?
  13. Are payday loans legal in the UK?
  14. Where can I get emergency loans in the UK?

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How do I get loans in the UK?

The UK is one of the strongest economies in the world with a well-established financial services market. Although the Financial Conduct Authority (FCA) effectively regulates this sector, there are loopholes in the system that some unethical direct lenders take advantage of. So, the first step involved in getting a loan in the UK is by educating yourself about the debt options available. Next, you need to know how to use them to your advantage while comparing loans.

Also, you need to be aware of the mandatory obligations put forth by most banks and financial institutions in the UK. Those conditions require you to be a UK citizen who has completed 18 years of age. Also, you must be fully competent to enter into a legally binding contract. Other requirements usually include being in full-time employment and having a good credit score. Unless you fulfill these essential criteria, some banks may not even process your application for a loan in the UK. In addition to that, sometimes you may also be required to furnish one or more guarantors.

At Money Pig, we do things differently and although we require all applicants to be UK citizens that have completed 18 years of age and hold a UK bank account, we do not necessarily impose other restrictions that banks do. So, neither your credit score nor your employment type can be a roadblock when you want to apply for a loan through Money Pig.

Who can lend loans in the UK?

In the UK, the financial services sector is regulated by the Financial Conduct Authority (FCA). It regulates the entire financial services sector including banks, direct lenders, and all other financial services providers. All our direct lenders are licensed and regulated by the FCA and you can verify the same by confirming their names in the FCA’s online register.

While borrowing a loan in the UK, you need to be cautious about who you deal with because the illegal money lending market in the UK is huge. Moreover, if you are trapped by a loan shark then your only resort is to seek the help of England IMLT (England Illegal Money Laundering Team) that works under the FCA.

This could be a lengthy and tedious process. Therefore, we do the groundwork for you and make it a point to rope in legitimate and licensed lenders that are authorized to advance loans in the UK. These lenders are subject to the lending, evaluation, debt collection and other protocols put forth by the FCA. So, you can be sure that we do everything we can to ensure that you are transacting with a legitimate and authorized direct lender.

What are the eligibility criteria to borrow a loan in the UK?

You must understand that there are mandatory criteria and other criteria that the banks or the financial institutions can impose. The mandatory criteria require you to be a UK citizen who is a Major, which means that the person must have completed 18 years of age. Also, the borrower must be working in the UK and must hold an account with a UK bank. Now those are the mandatory requirements that you must fulfill.

Also, during the initial review of your loan application, there would be a credit check conducted by the bank or the financial institution. So, you need to meet the minimum threshold in order to qualify for the loan. As the minimum threshold is decided by the bank or the financial institution depending on several parameters such as the loan amount sought to be borrowed, duration of your relationship with the bank, etc… there is every possibility that your loan application may be rejected. This may negatively impact your future prospects of qualifying for a loan.

Money Pig understands the importance of your financial future and therefore does not impose such thresholds. Instead, we offer loans to almost anyone who fulfills the abovementioned mandatory requirements and can repay the loan amount. So, when you apply for a loan from Money Pig, there are no other eligibility criteria that we require you to fulfill.

Where can I get cheap loans in the UK?

Loans in the UK are seldom cheap, but Money Pig can help you gain access to direct lenders that offer numerous cheap loans. Depending on your requirements, you can pick one that’s specifically designed for your needs. It could be an auto loan, student loan, payday loan or any other type of borrowing. Just mention your requirements clearly in the loan application and we’ll get back to you with the best offers from our direct lenders.

You must know that the interest rates offered would be proposed based on your credit score. However, unlike in the case of a bank, you can avail offers from many direct lenders and compare them. So, you have the power to make the decision about who you wish to borrow from, which is indeed very useful in the long run. It lets you compare the loans based on how much you would eventually end up paying as interest.

Which is the best loan in the UK to buy a car?

If you have found the car you wish to buy and are looking out for a car loan in the UK, then you would be surprised to know that most people choose to purchase a car with loan options other than a car loan. In fact, doing that is a highly recommended practice because it lets you own the car from the very beginning. On the other hand, if you chose to buy a car with a car loan then the transfer of the car’s ownership is going to take some time. That’s mainly because you get to own the car only when you have repaid the entire loan amount and are about to conclude the car loan agreement.

So, if you borrow a car loan of £10,000 for a period of 36 months and have repaid £3,500 and wish to purchase a new car that you are getting an attractive deal on, then it’s going to be a cumbersome process. Now that isn’t the case with certain other loans such as Money Pig’s personal loan and student loan. These loans allow you to own the car from the very moment you purchase it. We would like to clarify that a student loan is a short-term loan designed for students pursuing full-time education. The funds released under this type of loan are not restricted for education or academic purposes and can be used in any manner the borrower wishes to. Most students use it to upgrade their lifestyles by buying a car or to move into a new apartment.

Which loans in the UK are best for consolidating debts?

Consolidation of debts can solve many problems such as lowering the interest rates of your existing debts, minimizing the chances of missed repayments, and more. Therefore, most individuals who owe three or more debts choose to consolidate them with a single loan. Now, there are many ways of doing this and the type of loan you choose depends on the aggregate sum that you currently owe to your debtors.

If the total sum isn’t very high but the interest rates are bothering you, then consider borrowing a personal loan to consolidate them. However, if your debts are high but you have a decent credit score then consider borrowing a loan to consolidate debts. Another option that only Money Pig offers is bad credit loans to consolidate debts. As the name implies, it is a loan designed for those with bad credit scores but steady income streams.

How can a full-time student get a loan in the UK?

As a full-time student, you may not be able to work in a full-time job which often makes it difficult to make ends meet. More so, if you do not have someone to financially support you when you need to deal with a sudden expense that your part-time job cannot cover-up. Also, not being in full-time employment disqualifies you from many types of loans that are exclusively offered to those with a full-time job.

Most banks in the UK offer personal loans and payday loans to those who are in full-time employment and may not have an option that full-time students can explore. Often, the only option available for those without a full-time job is an overdraft, which may not always be sufficient. Therefore, Money Pig offers student loans that are exclusively available to those who are pursuing full-time education. We offer this to students in part-time or remote employments, which makes this type of loan unique. So, if you are a full-time student looking for a loan in the UK, then do not hesitate to apply through Money Pig.

Can I get a loan in the UK with a bad credit score?

In most cases, those who have bad credit scores would either be denied a loan or may fall prey to a loan shark. To eliminate that possibility, Money Pig connects you to many FCA licensed direct lenders through a single loan application. The best part is that we offer bad credit loans which are exclusively designed for those with poor credit scores. We firmly believe that everyone deserves a second chance and that includes those struggling with bad credit scores and trying to rebuild their lives.

At Money Pig, we have several direct lenders within our network that offer bad credit loans. So, based on your current credit score and repayment capability, we would connect you to the ones who are most likely to approve your loan. To do this, we run a soft credit check which in no way impacts your credit score. This process is solely designed to provide insights into your current financial details, which enables us to channelize your application to the most suitable direct lender.

How to get an online loan in the UK?

Most direct lenders in the UK offer online loans, which helps expedite the borrowing process. This requires you to be a UK citizen, hold a UK bank account, and must have completed 18 years of age. Also, there would be other eligibility criteria depending on the bank, financial institution, or the direct lender you apply to.

However, since there is little interaction between you and the lender, you may not know how their loan application review and approval process works. This could do more harm than good and therefore at Money Pig, we keep our customers well-informed about the simple and effective loan approval process that we follow. This involves an online application, soft credit check, and forwarding your application to the most appropriate direct lender. Finally, the direct lender runs the hard credit check before releasing the online loan in your favor, which prevents hard credit checks and its aftermaths during the initial stages.

While borrowing online loans in the UK, there are a few other things that you need to know. With so many loan sharks out there, it is essential to confirm that you are transacting with an FCA licensed lender. At Money Pig, we work only with those direct lenders who are FCA licensed, something that we encourage you to confirm on the online FCA register. This makes your online loan borrowing much safer as it ensures that you are dealing with a legitimate lender.

Do I have to be in full-time employment to get a loan in the UK?

Most loans in the UK are available only to those who have a full-time job and a good credit history. However, we understand that it's not necessary to have any of that in order to qualify for a loan and duly repay it. Therefore, at Money Pig, we partner-up with direct lenders who offer loans to those in all types of employment — full-time, part-time, or remote. So, as long as you have a steady income, our lenders would be willing to offer you a loan. This applies to all types of loans that are offered by Money Pig, so do not think twice before applying to us for a loan, even if you do not have a full-time job.

Is it mandatory to have guarantors to get a loan in the UK?

The answer to that question depends on the credit score of the borrower and the sum that he wishes to borrow. Most banks in the UK deny doing business with those who do not have a good credit score, while some financial institutions may ask for one or more guarantors. At Money Pig, we let you choose which way you wish to go by offering bad credit loans and no guarantor bad credit loans. Our direct lenders are extremely flexible and can offer proposals for either of the two types of loans. So, when you apply through Money Pig, you do not necessarily need to have a guarantor.

Can I get a loan in the UK without a credit check?

No, you cannot get any loans in the UK without going through a credit check — at least not from a legitimate lender who is licensed and regulated by the FCA. That’s because all lenders in the UK are regulated by the FCA and need to function in accordance with its guidelines. So, if you are being lured into a loan by someone who is willing to forego a credit check, then you are transacting with a lender who is operating illegally. This could lead to serious long-term consequences and must be avoided. At Money Pig, we do not offer such illegal options but instead, offer loans to those with all types of credit scores. So, if you are concerned about a bad credit score, then consider applying to one of our bad credit loans.

On the other hand, if you are worried about the after-effects of a loan rejection on your credit score, then Money Pig’s innovative approach does not let that happen. All our direct lenders run soft credit checks during the initial stages and therefore a rejection will have no impact on your credit scores. It is only when you agree to enter into a loan agreement with the concerned direct lender, that a hard credit check would be performed, and the funds would be released directly into your bank account. This approach keeps you safe from the harsh impacts of loan rejection and at the same time allows the direct lender to comply with the FCA’s guidelines and regulations.

Are payday loans legal in the UK?

Yes, Payday loans in the UK are absolutely legal, but only when borrowed from banks, financial institutions or direct lenders licensed by the FCA. However, while borrowing a payday loan in the UK, you need to be careful about the interest rates that you agree to. Most lenders offer interest rates calculated on APRs, which include several other loan processing costs. These are costs other than the amount you wish to borrow. So, seek clarification about the costs included in the APRs to ascertain the total interest that you would be paying on the loan amount. Also, it is recommended that you compare offers from several direct lenders in order to get the best deal. The most effective way to compare offers is to seek clarity about all the costs that the APRs would include and calculate the total interest payable at the end of the loan period. To make this convenient for you, we connect you to several direct lenders willing to offer payday loans in the UK.

Where can I get emergency loans in the UK?

If you are stuck in an emergency situation and are looking for a loan in the UK, then this can be tough due to the formalities involved in sanctioning the loan. However, Money Pig has a wide network of lenders who offer unsecured loans in less than 24 hours. Some of Money Pig’s emergency loan options include same-day loans, fast loans, student loans, and bad credit loans. With an approval rate of over 92 percent, you can be sure that Money Pig can help you during emergencies.

Money Pig offers several loan options that you can explore based on your individual requirements. For the best low-interest loans in the UK, Apply Now.