Warning: Late repayment can cause you serious money problems. For help, go to MoneyAdviceService.org.uk

Get The Money You Need

Apply to Borrow £1000 to £25,000*



Apply for fast and secure online loans today

  • Apply For £ 50 – £ 1,000
  • Fast Payout
  • No Fees
  • Secure Appilcation
  • Available 24/7
  • Bad Credit


If you ever need funds to cover a huge expense, a personal loan can be worth looking into. Depending on your credit score, affordability, and other circumstances, the loanable amount can be substantial. If you’re planning on taking out a £20,000 loan, there is a wide array of possibilities that you can do with the funds. With its flexible nature, there would be no restrictions on how you see fit to spend it. 

Repaying a £20,000 loan - What You Need To Know

How much your repayment would be will usually depend on your credit score. If you have a good credit score, more lenders would be willing to open their doors for you. They would be willing to offer some competitive borrowing rates as well. 

If your credit is good, one of the lowest representative APRs offered these days is 2.9% for a £20,000. This is payable within a 5-year term. Monthly repayments would be at £358.14, which would bring the actual borrowing total to £21,488.40.

However, if you happen to have a rather patchy credit history, expect that the interest rates involved for such a huge loan amount are going to be incredibly higher. The lowest representative APR you can find in the market with this kind of credit score is at 42.5%, payable for 5 years. Monthly repayments would be £721.94, which brings the loan total to £43,316.40- certainly a world of difference to what you could get if your credit is good. There will likely be application or processing fees charged on you as well. 

Things to Consider Before Sending Your Application

Before you consider sending a loan application in, make sure to shop around and compare options. You would not want to send several loan applications to various lenders all at once as that will only damage your credit score in the process. What you should do is gather as much information as you can about lender offers and get soft quotes so you know what they will be willing to offer to you. 

Also, if your credit is bad, work on fixing it first. You’ll generally get better loan offers when you have a sound credit score, a stable income, and a good payment history to show. 

Loans play a major role in your credit and how you manage them creates a massive impact on your credit score. Therefore, it’s necessary to understand how loan affects a credit score first before you create a new account.

How Loans Affect Your Credit

New and current loans can affect your credit history in more ways than one:

  • Paying late or defaulting on a loan affects your credit negatively

  • Paying on time helps you build and increase your credit rating

  • Having too many loans affect your chance to borrow a new one (although it might not directly influence your credit remark)

  • Loans can hurt your credit report for a long time but you can still fix it

Building A Credit History

Your credit history is a reflection of your behavior as a borrower. If you settle the loans you’ve applied for on time, it will show on your credit history, and lenders will see you as low risk. However, if you have any problems repaying your debts, it will affect your credit report badly, and loan providers will assume that you will do the same in your new account.

That being said, it’s important that you take your loan repayments seriously and only borrow an amount you can afford. A good credit history will not only increase your chance of getting your application approved but also, it means that you can get a bigger loan amount, lower interest rates, and a more flexible repayment term.

On the other hand, if you have a poor credit record, banks and traditional lenders will automatically reject your application and although you have other options, it will be very limited. In addition, the loans you can have only will only offer a small loan amount with a very high-interest rate.

If you want to build a good credit report or increase your credit rating, you can rely on a good repayment plan. Settle all your current debts, no matter how daunting it is, and be sure to do the same thing if you have been granted with a new account.

Get The Money You Need

Apply to Borrow £1000 to £25,000*