12 Months Loan - Loans Over One Year
We could be the savviest saver out there, but that doesn’t make us immune to packed-up cars or broken washing machines. Sometimes, all it takes to disrupt our financial situation is one out-of-the-blue bill or broken appliance.
If your savings have fallen short and you have an emergency expense to cover, searching for a 12-month loan with Little Loans could be something to think about, even if you have a history of bad credit.
What is a 12-month loan?
A 12-month loan is an amount of money borrowed from a lender for a one-year duration and could help you stay afloat during an unexpected financial issue. Your 12-month loan will be repaid in monthly instalments over the course of a year and your repayments will include interest.
What can I use a 12-month loan for?
A 12-month loan could be a financial solution for an unplanned expense, such as an urgent home repair or emergency bill.
Responsible spending should be of paramount importance when considering any type of loan. Before you apply for a loan, you need to be absolutely certain that this type of credit is suitable for you. You should never apply to borrow more money than you need or can afford to repay. Making a late monthly repayment or missing one altogether could put your finances and credit score at risk.
12-month loans: credit broker vs direct lender
If you’re thinking about searching for a 12-month loan, you might have asked, ‘What’s the difference between a credit broker and a direct lender?’.
We’ve included the table below to show some key differences between a credit broker and a direct lender.
| Credit broker | Direct lender |
| Can scan numerous lenders at the same time to search for a suitable loan for you. | Can check your eligibility for their product(s) only. |
| Uses soft search technology with no impact to your credit score.* | Will carry out a creditworthiness assessment, consisting of either a hard search or Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short space of time will harm your credit score. |
| Could save you time and help to protect your credit score. | Applying to multiple lenders can take time and negatively affect your credit score. |
Whether you use a credit broker or direct lender, you should make sure that the company you’re dealing with appears on the Financial Conduct Authority (FCA) register.
How much money can I borrow over 12 months?
Little Loans is a credit broker. The lenders on our panel offer short-term, 12-month loans between £100 and £7,500.
Other repayment terms are available if you’re hoping to borrow for longer or shorter than a year. With Little Loans, you can search for a loan with a repayment term up to 60 months, depending on the amount of money that you apply to borrow.
A 12-month loan for bad credit
Bad credit can be caused by a number of factors, including defaulting on past credit commitments, making multiple applications for credit, and even being the victim of fraud. Whatever the reason, we understand that having bad credit can be worrying, especially if you find yourself in a position where you need to apply to borrow money to help you through an unforeseen financial challenge.
Little Loans is proud to work with a large panel of reputable and responsible UK-based lenders, several of whom specialise in loans for people with bad credit. While getting a bad credit 12-month loan could be possible, you should weigh up whether this is the right choice for you. A bad credit loan could come with a higher rate of interest, and this will increase your overall cost of borrowing.
If I’m approved for a 12-month loan, how soon can I receive the money?
Our user-friendly online form takes around 5 minutes to complete. If your application for a 12-month loan is approved by one of our lenders, your funds could be sent the same day. Please be aware that the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
Can I get a payday loan over 12 months?
As per their name, payday loans are typically designed to plug an emergency between one payday and the next. If you take out a payday loan, you’ll usually need to repay the full amount within a month. With this in mind, it’s highly unlikely that you’ll be able to find a payday loan with a 12-month repayment period.
None of the lenders on the Little Loans panel offer payday loans, although they do offer a variety of loan amounts with a 12-month repayment term.
How much will it cost to get a loan over 12 months?
The overall cost of a 12-month loan will vary from person to person.
When searching for a loan, you may notice the term ‘Annual Percentage Rate’ (APR). The APR is the annual cost of borrowing the loan and includes interest and any standard fees. The interest rate you’re personally offered will be determined by several factors, including your credit score and history.
The table below can give you a general estimate of costs if you were to be approved to borrow a loan over 12 months with an APR of 79.5%.
| Loan Amount | Monthly Repayment | Total Amount Repayable |
| £100 | £12.34 | £148.08 |
| £500 | £61.70 | £740.39 |
| £1,000 | £123.40 | £1,480.77 |
| £1,500 | £185.10 | £2,221.16 |
| £2,000 | £246.80 | £2,961.54 |
Please keep in mind that these examples are for illustrative purposes only. We used this loan repayment calculator to determine our workings.
If you’re accepted for a loan, the overall cost of borrowing will depend on the lender and your personal circumstances. Before committing to a credit agreement, you should make sure that you’re fully aware of your monthly payments and the total amount repayable.
Do I need a guarantor to borrow a 12-month loan?
No, you don’t need a guarantor to apply for a 12-month loan with Little Loans, even if you have bad credit. Several of the lenders on our panel specialise in loans for people with poor credit history, without the need of a guarantor. None of the lenders on the Little Loans panel offer guarantor loans.
Why choose Little Loans to help you search for a 12-month loan?
- All the lenders on the Little Loans panel are authorised and regulated by the FCA.
- You can search for a loan 24 hours a day, 7 days a week, and there’s just one, straightforward form to fill out on Little-loans.com
- Our service is free to use.
- No-obligation quote.
- Check your eligibility for a 12-month loan in just 60 seconds, with no impact to your credit score.*
- We pride ourselves on providing excellent service to each and every one of our valued customers. Got some questions about the loan search process? Our friendly customer care team are on hand to help from Monday to Friday, between 9am and 5pm. Please be aware that any questions relating to a specific loan, or your onward journey past the initial searching stage, will need to be directed to your chosen lender. You can find further information and contact details for each of our trusted lenders here.
Free, financial advice
If you're struggling with your finances, there are a number of established charities in the UK which offer free advice and support. Please reach out to the following organisations for more information:
*If you search for a loan through a credit broker, are matched with a lender, and choose to make a full application, a creditworthiness assessment will be carried out. This will include a hard search or Open Banking. Please note that a hard search will be visible on your credit file for up to 12 months, and multiple hard searches in a short period of time will have a negative effect on your credit score.
Straight forward
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Representative example: Amount of credit: £1000 for 12 months at £123.40 per month. Total amount repayable of £1,480.77 Interest: £480.77. Interest rate: 79.5% pa (fixed). 79.5% APR Representative. We’re a fully regulated and authorised credit broker and not a lender