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A wise guide to…

12 month loans.

A 12 month loan can be a great way to help you successfully recover from a financial emergency or provide access to a larger loan amount. As always, know where you stand, compare your options and Choose Wisely.

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Representative 69.9% APR (variable). Representative Example: If you borrow £1,500.00 over 24 month at a Representative rate of 69.9% APR and an annual interest rate of 54.19% (fixed), you would pay 23 monthly repayments of £103.64 and a final payment of £103.74. The total charge for credit will be £987.46 and the total amount payable will be £2,487.46.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

A quick, easy way to get a 12 month loan today.

  • Borrow from £300 to £10000.

  • Choose between lenders who have accepted your application.

  • Absolutely no fees, ever.

Representative 49.7% (variable).

How to get a 12 month loan in 3 simple steps.

Affordability assessment.

1 form - takes 2 minutes to complete and your data is 100% secure.

Compare products.

Choose from lenders that have accepted your application.

Speedy finance.

If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Andrew Freelander
Read time: ~5 mins
Published: 13th July 2018 Updated: 10th September 2020

What can I expect from a 12 month loan?

If you’re looking for a 12 month loan, you may be looking to consolidate a number of smaller loans to reduce the cost of your monthly repayments or to borrow higher loan amounts. Either way, it’s a good idea to get the facts straight before you apply.

Various lenders offer 12 month loans are typically for anything from £100 to £5,000. You can apply for a loan and receive your funds online without having to visit a branch. Depending on your credit history, how affordable the loan is for you and the lender you’re applying to, your funds could be in your account within the same day of application. If approved some lenders advertise payout times as quick as 15 minutes.

What direct lenders in the UK offer 12 month loans?

There are a variety of lenders in the UK that offer loans repaid over 12 months. This may include your local bank, but also a range of alternative options, such as guarantor loans. Each direct lender will have their own set of criteria and will specialise in catering for applicants with a specific set of circumstances. By completing a loan search through Choose Wisely you can easily compare the best 12 month loan options for you.

Looking for a loan to pay a regular bill like council tax or your mortgage?

Borrowing more is not the answer. Get free advice at the Money Advice Service.

Can I get a 12 Month Loan with Bad Credit?

Although more expensive than the rates offered by the banks and supermarkets, there are bad credit 12 month loan options out there, just make sure you meet their criteria and that you can afford the repayments before committing. Overstretching your finances means you’ll be more vulnerable to falling behind on your repayments which can cause serious money problems.

Can I pay back the loan early?

Some lenders will let you pay back your loan early, without charging you any fees. If this is the case, you could save money by over-paying each month or by settling early. However, some may have fees or other restrictions for early repayment. Bottom line, if you’re planning to repay your loan early, check with your lender before you apply.

FAQ's for 1 year loans

Can I get a loan for 12 months with no credit check?

When you apply for a loan, whatever the terms, you will almost always be subject to a credit check. This is so lenders can understand how you’ve managed credit in the past and the risks involved with lending to you.

I have no guarantor, can I still apply for a loan with a direct lender?

Yes. There are a number of lenders that provide loans repaid over a 12 month period that don’t need to be supported by a guarantor. Approval will depend on a number of factors, such as your credit history.

If approved will I get a same day payout?

If you are approved for a loan most lenders will pay out the same day, sometimes the cash may even be in your account in less than an hour. Payout times will vary depending on the lender you’ve applied with.

Written by
Andrew Freelander
Brand & Content Manager at Choose Wisely

Andrew joined Choose Wisely 5 years ago, originally working in a design capacity to make sure the website was simple to use. Most notably he worked with the Consumer Finance Association to design the comparison table of choice for High-Cost Short Term Finance products.

The quickest way to find the best 12 month loan for you.

No obligation. 100% secure.

Important Information.

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

Rates shown are quotes 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 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

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

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

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