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£1000 loan - Apply to borrow £1,000

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Last updated: 04 July 2022

Needing to borrow some money is something most people will go through from time to time. It could be for a whole host of reasons. What matters is that when you need it, you need it. 
 
Fortunately, there are many lenders that are able to offer this type of service. However, while they are incredibly convenient, these loans can come with certain risks. 
 
So, we’ve put together a quick guide on applying for £1,000 loans, so that you know all the ins and outs and can then get the best rates. 

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What can I spend a £1,000 loan on?

Technically, you can spend it on anything you want. However, just because you can, doesn’t mean you should. We would recommend reserving this type of borrowing only for emergencies; times when you need cash in a pinch but also have a way of paying it back. This is due to the high-interest rates loans of this size can come with, something we’ll get to later.  

So when considering taking out a loan, you’ll want to think about whether it can wait. If your fridge has packed up and you need a new one, then you probably need the cash now. If your dog is sick and needs an operation, that seems like a justifiable reason to take out a loan. But if you are bored and just want to go to Ibiza for the weekend, then it’s probably not such a smart idea.

You should also consider exactly how much you need. As you'll be paying interest on any loan, the more you borrow, then the more you'll have to pay back. If you don't need a whole grand, consider a £500 loan, although interest rates will typically be higher. 

On the other had, you can give yourself a bit of breathing room as well as locking in better rates by opting for a £1,500 loan - just make sure you can afford to repay it. 

How much will I pay back on a £1,000 loan?

The total amount you are required to pay back after borrowing £1,000 will depend on a number of factors: 

Interest rates

Interest rates, or APRs (Annual percentage rates), can vary a fair bit. The two most important factors that determine your rates will be your credit rating and the loan repayment term. 

When they’re reviewing an application, a lender will want to make sure they get their money back. Like most types of businesses, they are risk-averse - if you are able to demonstrate that you not only have a good record of paying back credit, but are also earning enough to do so, they will look more favourably upon you.  

The standard rate for a personal loan is generally around 13.5% APR. A longer-term will generally bring higher interest rates, as the lender has to wait longer to get their money back. 

When you're calculating how much you're paying back, it’s not just the interest rate you need to worry about. The longer the loan term is, the higher the overall amount you will need to pay.

For example, if your borrow £1,000 over six months at 13.5% APR, you would pay back £1,039 in total. However, if you were to get the same rate of 13.5%, but on a two year loan, you would pay back £1,146.

If you decide to go for a payday loan, which can be in your account within minutes and is generally paid back within a couple of months, you can pay a much higher APR.   

Flat fees

As well as the interest, some loans will also charge a flat fee. This isn’t an industry standard, however, so you can generally find loans that don’t have them. 

Late fees

If you miss payments, then things can start getting really expensive. While the obvious solution is to ensure you pay them back on time, it’s not always a helpful one. Whether late fees are charged and how much they are will depend on the lender, so it’s vital you do your research.

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

Generally speaking, the answer to this is no. All lenders are required by law to carry out some form of credit check on prospective borrowers.

However, not all will perform what is known as a ‘hard credit check’, in which they look at your financial history. Some may conduct a more surface-level examination, where they look at your income, expenses and any obvious red flags like CCJ’s.

It’s important to note that while lenders who are less rigorous with their due diligence might be more likely to accept you, they generally charge higher interest rates.

What are the different types of £1,000 loans I can get?

Depending on what you’re looking for, there are various different types of loans available for those wanting to borrow £1,000. Some of the most common types are:

  • Payday loans: These are generally the fastest way to get your money. At the same time, they are the most likely to charge high APRs and incur late fees. Payday loans generally have short repayment terms of a few months and need to be paid back all in one go.
  • Instalment loans: A type of personal loan, instalment loans spread your payments out over a relatively long period, generally over one year or more. While they do not have the highest interest rates, you could end up paying back a fair amount depending on your repayment term.
  • Guarantor loans: If you have a bad credit rating, then you might need to get a guarantor loan. This means that another party with a better financial history essentially takes the loan out in your name. So, while you are still in charge of making repayments, they are the one that needs to step up if you miss one. 
  • Peer-to-peer loans: Peer-to-peer loans allow individuals to loan out their cash to prospective borrowers. This means that they set their own rates, and you are able to pick which one you want to go for. Often, this will limit the amount you can borrow, but it may mean you can get you a better APR.

How quickly can I get a £1,000 loan?

While it will depend slightly on the lender, you can generally get a £1,000 loan pretty quickly. Most companies understand that if you need £1,000, you need it quick, so they have systems set up to get it to you within minutes. Smaller loans are generally the easiest to apply for too. 

But if more stringent checks need to be carried out, you could end up waiting longer.

So, how do I apply for a £1,000 loan?

Once you’ve decided which type of loan you want to go for, the amount you want to borrow, repayment term you will need to have the following information ready:

  • Your monthly salary
  • Your expenses, e.g rent, childcare, bills
  • What address do you live at now, and is your address history
  • Bank account details
  • Contact information
  • Date of birth 

Once you have all this, you can use our loan comparison tool to see what deals are available to you.

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Michael Quinn

Author: Michael Quinn

Michael is a dedicated author helping usave to write guides, blogs and news for the last four years. When not writing articles, you can usually find him at wine tasting events or having a political debate on the night tube.

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