£1000 loans.

If you’re looking for a loan of £1,000 we’ll walk you through your options, explain what you’ll need to qualify and reveal how to choose a provider

Table of contents

Written by Mark Grimley
Read time: ~5 mins
Published: 28th September 2023

Can I get a £1,000 loan?

Yes, it's possible to borrow £1,000 from a direct lender, bank, credit union or via a loan broker or comparison site who work with multiple lenders.

If you want to apply for a £1,000 loan, you don't necessarily need to go directly to the bank where you hold a current account. Instead, you'll typically find more choice and find it useful to research the right lender for your borrowing needs online.

A good place to start your search is a comparison website where you can find a choice of trustworthy lenders all in one place. You’ll also be able to use tools like an eligibility checker to work out the loan providers most likely to lend to you.

How do I qualify for a 1k loan?

As long as you meet some simple rules, it's likely you'll qualify to apply for a £1,000 personal loan. Every lender has different criteria, but in most cases, you'll need to:

  • be a UK resident
  • be aged 18 or over
  • have a permanent, fixed address
  • have a UK bank account

You'll also need to be in full or part-time employment.

Using an online eligibility checker will mean you can find out whether you are eligible for a loan without leaving a 'hard' search on your credit report. This means your credit score won't be negatively affected.

What can I use a £1,000 loan for?

You can spend a £1,000 loan on anything you like once the money is in your account.

Reasons people may need a £1k loan are to:

  • repair a car
  • purchase a second-hand car
  • pay for a holiday or event
  • buy new furniture
  • deal with an emergency
  • settle high interest debts

This type of loan, taken for a short time, can be a helpful way to spread the cost of a large purchase or provide money to cover life's unexpected events when you have a temporary cashflow problem.

How much does a £1,000 loan cost?

The price of your £1,000 loan will depend on:

  • How long you borrow the money for
  • How much interest you'll pay (This is the APR of the loan)
  • Any fees or set up costs

Here's an example

If you borrow £1,000 over two years with an APR (interest rate) of 20% your monthly repayment will be £50.10. The total amount repayable will be £1,202.49, so the loan will cost you £202.49.

Small loans, like £1,000 loans, will cost you more interest overall because you'll pay a higher interest rate compared to large loans for sums such as £10,000. Likewise, the longer your borrowing term, the more it will cost you.

How long will it take to get a £1000 loan?

An online lender can often give you a decision within minutes - some lenders may deposit money in your account within 24 hours if you have a good credit score and can prove that you can afford the repayments comfortably.

High street banks may take longer, although if you apply with your own bank and your financial circumstances are straightforward, your £1000 pound loan can sometimes be arranged within hours.

What types of £1,000 loan can I get?

There's a choice of loans to suit all sorts of financial situations. £1,000 loans you may come across include:

  • Personal loans
  • Doorstep loans
  • Guarantor loans
  • Car finance loans
  • Payday loans
  • Bad credit loans

If you have a good or fair credit rating and regular income, a personal loan from a bank could be your cheapest option.

However, If your credit rating is poor or you have a low income, then a £1,000 bad credit loan or a guarantor loan may be a better option.

What are the pros and cons of £1000 loans?

A £1k loan can help you raise money quickly to pay for emergencies or spread the cost of a large purchase. If you have a good credit record and keep to your credit agreement, a small loan can be a cheaper alternative to credit card borrowing.

A £1,000 loan can help you:

  • Budget for the cost of large purchases
  • Cover an emergency like a vet bill or car repair
  • Solve short-term cash flow problems
  • Take control and manage existing debts

However, there are disadvantages to any form of borrowing, so bear in mind the following:

  • Small loans often have higher interest rates
  • Your approved interest rate may be higher than advertised
  • You could damage your credit score if you default on your loan
  • Penalties for late or missed payments may be high
  • A 1k loan could have inflexible repayment terms

Are there any alternatives to £1,000 loans?

0% credit cards

This type of payment card allows you to use credit to pay for goods and services for a short time. Some credit cards come with an introductory 0% interest rate which means you can sometimes borrow for free for up to 24 months.

Interest rates can be high once the interest-free period ends, and you'll need a decent credit score to qualify.

Credit building credit cards

A credit builder credit card is worth considering if you need a small loan but have a bad credit rating. These cards have low credit limits and are likely to have a higher interest rate than a personal loan.

You'll need to repay the balance on time and in full every month to build your credit score. If not, you could further damage your credit rating.

Buy Now Pay Later

Buy Now Pay Later is an interest-free, point-of-purchase credit option available from most online retailers. This option can be ideal for spreading the cost of online shopping but less flexible than a personal £1,000 loan.

You may benefit from a 0% interest rate for a set period; however, if you fall behind on payments, you'll be left with needing to pay penalties. Using Buy Now Pay Later will appear on your credit report.

Guarantor loans

Guarantor loans are a type of personal loan where someone else, usually a relative or friend, guarantees that the loan repayments will be made if you can't repay the loan yourself.

If your guarantor has a good credit rating, you may benefit from lower interest rates, but both you and the guarantor will have to have affordability and credit checks performed, so this type of loan may take longer to arrange.

Budgeting loan

f you've been on a benefit like Income Support or Pension Credit for six months or more and need to borrow money to buy essentials, you could be eligible for an interest-free budgeting loan from the Government. If you're on Universal Credit, you may qualify for a Budgeting Advance.

Can I get a £1,000 loan with bad credit?

It's possible, but you’ll typically pay higher interest rates, so your loan could be costly and you won't necessarily get the amount you want.

It's unlikely you'll get a £1,000 pound loan from a high street bank because traditional banks view people with bad credit as too risky to lend to.

However, if your credit score is poor there are plenty of specialist brokers and direct lenders who’ll consider your application for a personal 1k loan.

£1,000 loan FAQS

Can I get a £1000 loan without a guarantor?

Yes, if you fit the lender's eligibility criteria and have a decent credit score to demonstrate you’re a reliable borrower, you won't need a guarantor for a £1,000 loan.

How long will it take me to pay back my £1,000 loan?

It depends on the loan term in your credit agreement. Typically lenders offer small loans like £1,000 for between 12 and 36 months.

When you're deciding how long you want to repay your loan, weigh up how much you can afford to repay each month - it’s important not to overstretch yourself.

Can I get a £1,000 loan same day?

It depends on your financial circumstances and the type of loan you apply for.

If you have a good credit rating and lenders are able to validate your affordability immediately, there is a possibility you could get your loan within 24 hours. But if you have a bad credit score or a complicated financial situation, the loan may take longer.

Guarantor loans and credit union loans usually take the longest to approve and you could end up waiting for up to a week or more to get the money into your account.

Can I get a £1,000 loan without a credit check?

No, you can't borrow £1,000 without a credit check. If you want any type of loan from a trustworthy lender, you'll need to be credit checked.

This is because all legitimate lenders have to be authorised by the Financial Conduct Authority (FCA), which means they're bound by strict rules to lend fairly and responsibly.

Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.

Important Information.

All of the information in this guide is correct at the time of writing.

If you complete a loan search application on the Choose Wisely website, the rates shown may vary based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 13.9%APR to a maximum of 1721%APR Representative and loan repayment periods range from 3 to 60 months.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyhelper.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
You can access your credit report for free from Credit Karma, Clearscore or Experian.

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