What is a 12 month loan?

A 12 month loan can be put into the category of an instalment loan, where a loan is borrowed and paid back in fixed monthly instalments over a year.

At 118 118 Money, you could borrow from £1,000 to £5,000 over a period of one year, even if you have less than perfect credit.

What can I use a 12 month loan for?

The list of uses for a 12 month loan is almost endless; however we’ll outline some of the more common uses for this type of loan.

In most cases, people seek a 12 month loan to cover an unexpected emergency such as a car breakdown or home repair due to weather damage. Unexpected bills such as these can happen to anybody, at any time and can leave people with the uncomfortable situation of a lack of funds to cover the cost of regular and necessary bills.

On the other hand, another reason why a person might take out a 12 month loan is for a planned expense such as a family holiday or home improvement. Whatever your reason for borrowing a 12 month loan, 118 118 Money are on hand to help you out of a sticky situation.

Getting a 12 month loan with bad credit

If you have a less than perfect credit score, 118 118 Money will still consider offering a 12 month loan to you, because we know how hard it can be to get credit from banks and other lenders.

Rather than looking solely at your credit score, when reviewing a loan application we consider whether you can afford the fixed monthly repayments, depending on how much you’d like to borrow and for how long.

We lend to people who need financial help and pride ourselves on trying to help those that may find it difficult to get credit from other lenders. If you can show that the 12 month loan repayments are affordable then there is a good chance that 118 118 Money can help you.

Read more:

How to fix your credit score

Starting a budget planner

What if a 12 month loan is not suitable?

There are some cases where you won’t be offered a 12 month loan, for example if you cannot afford the higher monthly repayments, that’ll be a red flag to loan providers and they won’t accept your application, so make sure you can afford to pay the money back within the 12 months you’re applying for.

If you don’t think you’ll be able to raise the money within a year, a loan over 18 months or 24 months to spread the payments over a longer period might make the repayments less per month and may be a more suitable option for you.

How do I apply for a 12 month loan?

First and foremost, in order to apply you’ll need to be between the ages of 18-70, have a net income of at least £700 per month and hold a current UK bank account.

To find out if you’re eligible to receive a loan from us, try out our QuickCheck – it won’t impact your credit rating, and if you find that you are eligible, the application process will be simple and easy to complete.

I’ve applied for a 12 month loan, what happens next?

Once you have applied, you can track the progress of your application wherever you are. We want to make it easy for you to manage your finances and you can access your current balance at any time by logging in online.

You can check when the next payment is due and view any recent payments made. You will also receive a monthly reminder before each instalment is due. If you have any queries or questions, you can contact us 24/7 to talk to one of our agents.

Representative example: Amount of credit £1,800 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £142.65. Total amount payable: £3,423.67Representative 99.9% APR. 

Rates from 35.9% APR - 99.9% APR fixed.