Borrow Money

If you’re looking to borrow money, Little Loans could help you search for a suitable option, even if your credit score is a little worse for wear.
Little Loans is a credit broker. We’re proud to work with a panel of trusted and responsible lenders who offer short-term, personal loans from £100 to £10,000.

Our ultimate guide to borrowing money covers topics such as loans for people with bad credit; the difference between secured and unsecured loans; and how quickly your money could be sent if your application is approved.

How much money could I borrow?

The amount of money you could borrow will depend on a number of factors and it will be specific to you and the financial situation you are in.
You should never apply to borrow more than you need or can afford to repay.
You should also think carefully about how long you’d like to borrow the money for, as this will impact the overall cost of the loan.
A longer term will allow you to spread the repayments out, which could make borrowing more affordable, although you should be aware that you’ll pay more in interest. The shorter the term, the less interest you’ll pay, but your monthly repayments will be higher.

Little Loans is a credit broker, and the lenders on our panel offer short-term loans between £100 and £10,000.
Here are some of the amounts of money offered by our lenders:

I’d like to borrow money; what sort of repayment terms are available?

With Little Loans, you can search for a loan from 3 to 60 months, depending on the amount of money you apply to borrow.

Do I qualify to borrow money?

Every lender and broker will have their own eligibility criteria which must be met before you can search or apply for a loan. You’re welcome to search for a loan with Little Loans if you:

• Are over 18 years of age;
• Are a UK resident;
• Have a UK bank account with a valid debit card; and
• Have a regular income paid directly into your bank account.

Any credit score considered. If you’re concerned about your credit score, you can use our free eligibility checker before you make a loan application. In just 60 seconds, our eligibility checker will reveal your chances of approval using soft search technology.

How does the Little Loans process work?

Searching for a loan with Little Loans is straightforward. Here’s what you can expect from the journey:

1. Fill out our online form. You’ll need to let us know how much money you need, and how long you’d like to borrow it for.

2. We’ll run a soft search on your credit history, with no impact to your credit score. Next, we’ll scan our panel of lenders for a suitable loan.

3. If we’ve matched you with a lender, you’ll be redirected to their website. Should you choose to make a full loan application, the lender will carry out a creditworthiness assessment, which will involve either a hard search or Open Banking. Remember, a hard search will stay on your credit file for up to 12 months, and multiple hard searches in a short space of time will cause your credit score to decline.

4. If you pass the lender’s checks, they will let you know when your money will be sent.

Important: your lender will send you an agreement, where the terms and conditions of the loan will be explained. You should make sure you’re happy with everything before you decide whether to sign and return.

Can I borrow money if I have bad credit?

It could be possible to borrow money with a bad credit score, although this doesn’t mean that you should.
We understand that financial emergencies can happen to anyone, and we’re pleased to work with several lenders who specialise in loans for people with bad credit and poor credit history. If you’re faced with an urgent, unplanned expense, certain lenders of bad credit loans may be willing to consider your application, although the decision to apply should only be made after thorough research.
You must be 100% certain that you’ll be able to make your monthly repayments. We’ll talk about the possible implications of defaulting on a repayment further down the page.

A bad credit personal loan could come with a higher rate of interest. Sometimes, it might not be possible for you to borrow the amount of money that you need, and you may be invited to apply for a lower amount instead.

How can I borrow money fast?

When we need money in a hurry and we don’t have the funds to hand, it can be easy to panic. This might lead us to make a decision that perhaps isn’t quite right for us.
You should never apply for a loan without serious consideration or exploring any other options available to you first. If not managed correctly, a loan will have a negative impact on your credit score, which will affect your chances of being considered for credit in the future.

If you think a loan could be a suitable option for you, you can use our free eligibility check tool. In just 60 seconds, we’ll let you know your chances of being approved for a loan with one of the lenders on our panel. Please note that being pre-approved does not guarantee acceptance, and if you choose to make a full application directly with the lender, they will carry out a creditworthiness assessment as part of their process.

Some of the lenders on our panel are able to send your money the same day your application is approved, although the time it takes for the money to become available in your account will depend on your bank’s policies and procedures.

How much will it cost me to borrow money?

The cost of your loan varies and is affected by a number of different factors including:

• Your credit rating and your current financial situation.
• The interest rate you’re offered.
• How much you want to borrow.
• Your chosen loan term.

What information do I need to provide if I want to borrow money?

If you’re matched with a lender and make a full application, you could be asked to provide a form of ID, as well as proof of your income and address. Please note that while many of our lenders are able to complete your application online, others may ask you to attend a local branch to complete the relevant checks.

In addition to sharing your bank account details, you'll need to provide information about your monthly income and outgoings, address history, and source of income.

Can I borrow money without a credit check?

In the UK, you cannot get a loan without a creditworthiness assessment. If you have history of poor credit, you might feel concerned about undergoing a creditworthiness assessment or worried that it could stand in your way of being approved to borrow money when you need it the most. While this is understandable, it’s important to be aware that these checks are carried out in order to protect you from unaffordable borrowing.

Every lender who is authorised and regulated by the Financial Conduct Authority (FCA) must assess your ability to repay the loan. A creditworthiness assessment will include either a hard search or Open Banking.*

A hard search will be visible on your credit file for up to 12 months, and multiple hard searches within a short period of time will have a negative impact on your credit score.

*Open Banking is a procedure frequently used by authorised third-parties, such as lenders. With your consent, Open Banking enables your selected third-party to access your online bank account with a read-only view, which will provide them with an insight into your recent financial activity.

Will a loan impact my credit score?

Yes. Any type of credit will impact your credit score, although whether it’s affected positively or negatively will depend on your repayment habits.
Below, we’ve listed a couple of ways that a loan could impact your credit score.

• As mentioned, when you apply for a loan directly with a lender, they will complete a creditworthiness assessment. This will consist of either a hard search or Open Banking.
• You could minimise the number of hard searches you undergo by using a credit broker to help you search for a loan, rather than applying with multiple direct lenders.
• If you repay your loan within your chosen term and make your monthly repayments on time, you could see an improvement in your credit score, although this will depend on how you’ve managed any existing credit commitments during the term.
• On the other hand, defaulting on a repayment will damage your credit score.

What are the differences between a lender and a broker?

When you apply for a loan directly with a lender, they will check your eligibility for their product(s) only. Every time you make a direct lender application, a creditworthiness assessment will be carried out, and this could include a hard search.
If you were to make several applications with multiple lenders, you run the risk of multiple hard searches being added to your credit file. This will damage your credit score.

Using a credit broker, like Little Loans, could help to save you time and protect your credit file from multiple hard searches.

What’s the difference between a secured and unsecured loan?

A secured loan is when you borrow money from a lender and secure it against an asset, such as your car or home. This is known as ‘collateral’, and means that if you default on your repayments, the lender is within their right to repossess the asset to recoup the money they’re owed.

An unsecured loan doesn’t require you to use an asset as collateral and therefore could present more of a risk to the lender.

The lenders on the Little Loans panel offer unsecured loans only.

Do I need a guarantor to borrow money?

If you have a poor credit score, you might have thought about searching for a guarantor loan. A guarantor loan is when somebody else, usually a close family member or friend, agrees to make your loan repayments if you cannot.

A guarantor loan might not be your only option when searching for a loan with bad credit. Little Loans works with several lenders who provide no-guarantor bad credit loans.
Please be aware that Little Loans does not work with any lenders who offer guarantor loans.

I need to borrow money; how quickly will my loan be sent?

Once you’ve signed and returned your credit agreement, your lender will let you know when you can expect your money to be sent. Every lender has their own payout timescales; some may send funds at the same time each day, others once every couple of days. As previously mentioned, a number of the lenders working with Little Loans are able to send your money on the same day as your application is approved. Again, it’s important to manage your expectations; the time it takes for your funds to appear in your account will vary, depending on the policies and procedures of your individual bank.

How do I repay my loan?

If you’re approved for a short-term loan, you’ll typically repay the money you owe in monthly instalments. Your monthly repayments will include interest.

If you’re in a position to be able to do so, you might choose to clear the balance of your loan early. Please note that some lenders may charge an early repayment fee. You will be able to find out about any early repayment fee in your terms and conditions.

Personal loans: an overview

Here’s a brief summary of some of the important information we’ve talked about in our guide.

• Little Loans is a credit broker. We work with a large panel of lenders, all of whom are authorised and regulated by the FCA.


• The lenders on the Little Loans panel offer short-term, personal, unsecured loans from £100 to £10,000.


• Depending on the amount of money you apply to borrow, you could repay your loan across a term of between 3 and 60 months.


• Several of the lenders on the Little Loans panel specialise in bad credit loans, although these may come with a high interest rate.


• Before you apply for a loan, you should take the time to go through any other options that might be available to you first.


• A loan will affect your credit score. Depending on how you manage your repayments, this could be either positively or negatively.

I’m struggling with debt; should I borrow more money?

We understand how daunting this situation can be, but it’s really, really important to take a step back. It may feel like there’s no way out, but help is available. Please know that you can access free, confidential debt advice from any of the following charities and organisations:

• StepChange
• MoneyHelper
• Citizens Advice
• National Debtline

Talking about money can be really uncomfortable, but you don’t have to suffer in silence. You deserve to seek help you and take the first steps towards getting your confidence back.
Remember, you have nothing to feel ashamed of; anybody can fall into debt at any time.