When you start looking for a loan the amount of options out there can be overwhelming. Who knew it could be so complicated? When you’re knee deep in payment plans, it can be hard to see through all the jargon to know what the best fit is for you.

Bank loans

Traditional bank loans will probably be the first option you think of, but it can also be the most intimidating one.

Does the thought of having to apply for a loan and the fear of being rejected fill you with dread? You’re not alone. Very few people have a perfect credit score and, due to the current banking climate, if banks are not 100% confident you can repay the loan you’ll get a rejection and a search on your credit score, which can leave you even further from the funds you need.

Credit cards

Banks will offer the credit cards with the lowest annual percentage rates (APR) to those with the best credit scores, which means that you could end up with a less than competitive rate.

Credit card application can also be a lengthy process, with online forms to fill out and then you’ll need to await delivery of your card.

Having one in your wallet can certainly be useful to cover smaller, emergency purchases such as food, petrol or to cover the odd unexpected bill; however, if you need funds for a bigger purpose putting it on a card with a high APR could cost you more in interest than a different type of loan.

Logbook loans

If you own your car outright you could go for a logbook loan, which basically means the lender becomes the temporary owner of your vehicle until you pay back the loan.

There are no credit checks, which may appeal to you if you’re credit score is less than perfect, however you hand over your vehicle registration document and sign both a credit agreement and a bill of sale, so if you fail to make repayments your car will be sold to re-coup costs.

You’ll also only be likely to borrow up to 50% of the value of your vehicle, so it could be argued that this is a high-risk option for a nominal amount.

Doorstep loans

Does someone coming to your door to give you money sound good? How about if you could get that money with no credit check?

Well, if something sounds to good to be true it usually is. Doorstep loans are small loans where the lender visits your house to collect the money.

You have to specifically write and sign a request for them to turn up, and the lack of a credit check means pretty steep interest rates.

The 118 118 Money difference

A 118 118 Money loan offers competitive rates of interest for people with a less than perfect credit score – much lower rates than you’ll receive from most short-term lenders, or doorstep lenders. What’s more, we don’t charge sneaky, hidden fees or upfront payments.

We’ll only lend what you can afford so you know your monthly payments will be manageable. And the other good news is that your repayments will be arranged the day after payday.

You can apply online now or if you’d like to chat to us about your loan application, just call us on 08000 118 000 or 02920 893300*
We’re here for you 24/7.
(*08000 118 000 is free from UK landlines. Calls from other networks and mobiles may vary. 02920 893300 is charged by your provider as a UK national number.)

Representative example: Amount of credit £1,810.48 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £143.48. Total amount repayable: £3443.52. Representative 99.9% APR.

Rates from 35.9% APR - 99.9% APR fixed.