We've launched a brand new mobile app! Download it now. App Store Google Play


Online Loans & Alternatives

  • You could consider a credit card instead
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 49.0% pa (variable) Representative 49.0% APR (variable)

What is an online loan?

Any loan applied for over the internet can be called an online loan. As with most other types of loan, you borrow money over a pre-agreed period of time and pay it back via instalments, with interest attached. But the application and decision-making processes tend to be simpler and quicker compared to walking into a lender’s physical premises for an extensive interview.

When you apply for online loans in the UK, your lender will usually conduct a credit check to assess your financial situation and confirm your details. They can sometimes make a decision within a few hours and, if you’re approved, you could even receive your money on the same day.

118 118 Money are online personal loan and credit card providers, simply meaning if you want to apply for our loan or credit card, you can only do so online.

Apply for a credit card from 118 118 Money with confidence
Use our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
Why use a credit card from 118 118 Money as an alternative to an online loan?

Here are the major features of the 118 118 Money Simple Interest Rate Credit Card:


Get a credit limit of up to £1,200.

You can apply for the 118 118 Money Credit Card online.

You benefit from up to 51 days interest-free on purchases when you repay your balance in full each month.

You can repay your balance in full or via instalments if that suits you better. There will be a minimum monthly repayment and we would always recommend paying back more than that if you can.

You can check your eligibility with no impact to your credit score.


Want to apply for a credit card?

  • Alternative to an online loan
  • Check your eligibility with no impact on your credit score

The different types of online loans

An online loan can come in many forms. Below we’ve broken down some of the main types to help you understand the key differences.

  • Short term online loans: These tend to be repaid over a period of a few months, rather than years. Typically, the interest rates on short term loans are higher than for longer-term agreements. The minimum repayment for a 118 118 Money online loan is one year. 
  • Long term online loans: Usually, this refers to a loan taken out over anything longer than 12 months. They tend to be used for larger expenses and they often come with a lower interest rate than short term alternatives.
  • Online loans with a guarantor: This is where someone else agrees to take over the loan repayments if you can’t make them. That person is usually somebody you trust, such as a close friend or family member. We do not offer guarantor loans.
  • Online loans with no guarantor: With this type of loan, there is no requirement to get someone to agree to make the repayments on your behalf. Instead, the responsibility to repay is solely yours.
  • Online loans through a direct lender: We are direct lenders of online loans. That means that, when you apply direct, you deal only with us, but we do also use brokers too.
  • Online loans through a broker: This is where you use a third party to find the best loan for you. Rather than enter your details with several providers, you do it once with a broker and they do all the hard work for you in terms of comparing products.
  • Online loans for bad credit: If you have a less-than-perfect credit history, that doesn’t mean that you’re automatically ruled out of being approved for an online loan.

Although the features of some of the above-named loans can differ, they are typically unsecured personal loans often differentiated on the basis of their respective features.

How can I choose the right online loan?

Choosing the right online loan is an important decision, so make sure you do your own research. There are many things about which you need to think before entering into a contract, because what’s right for someone else might not be right for you.

Start by identifying how much you need to borrow and how much you can afford to repay each month once you take away your fixed outgoings. This will help you to understand what you can afford to borrow. You should also think about what fees will be charged and the length of repayment period that best suits you.

It is also worth looking into whether you can find a better APR. Even if your credit score is less than perfect, some online loan lenders like 118 118 Money will consider applications from those with a less than perfect credit background.

Our money guidance section will help you to understand your finances so that you can make fully informed decisions.

118 118 Money’s online loans

We can offer online loans to UK customers. With us, you can borrow between £1,000 and £5,000 to be paid back over a period of one-to-three years, missed or late repayments will incur a £12 charge. 

But as we’ve discussed above, you may find that the terms of our online loans are not quite right for you. It’s important that you weigh up all your options, and it might be that the 118 118 Money Simple Interest Rate Credit Card is a more suitable option for your specific needs.

Credit cards vs online loans in the UK

If you’re weighing up whether to apply for a credit card or an online loan, you need to understand the key differences between the two products. No two situations are exactly the same, so it’s important to do your research and take into account your individual circumstances. Here’s a few considerations comparing the two products:



Credit Cards

Online Loans


Choose to repay the minimum amount, the entire balance or somewhere in between

Typically the repayments are fixed, so your instalments are spread over a certain period. Overpaying is an option dependent on lenders

Continued use

Continual use providing it’s within your agreed credit limit and repayments are kept up to date

The loan agreement will terminate once the loan amount and interest are repaid over the agreed period


You can use any amount up to the agreed credit limit at any time although, depending on how you repay, you may end up paying interest on your balance as well

The amount you agreed to borrow from the lender plus the interest and/ or any fees is what you’ll end up repaying


Some credit cards can include balance transfers, loyalty points, fee-free usage abroad and more dependent on the lender

Typically there aren’t any rewards with online loans, though this can vary from lender to lender

Am I eligible to apply for a credit card?

Before you begin the application process, you can check your eligibility using our simple tool. It will tell you if you’re likely to be approved as well as what credit limit we can offer. And it won’t have any impact on your credit score. To qualify for the 118 118 Money Simple Interest Rate Credit Card, you’ll need to:

  • Be a UK resident
  • Be aged between 18 and 70
  • Earn at least £8,400 a year
  • Not be in arrears with another lender
  • Have had no default payments in the past six months

Whilst using the eligibility checker we’ll also need to know your:

  • Name
  • Email address
  • Date of birth
  • Current employment and residential status
  • Net monthly income
  • Outgoings
  • Home  address

Will my credit score be affected when I apply?

Making a single application for credit – whether that be for an online loan or a credit card – should only have a minimal impact on your rating. However if, if you have several applications in a short space of time, it can have a negative effect on your credit score.

If you’re approved, it can actually give you the chance to improve your score. By making your repayments in full and on time and also ensuring you keep up with all your other financial commitments, it will show lenders that you can manage your finances.

Will I need to go through a credit check?

Yes. All credit card and online loan companies will run a credit check when you apply. We’ll also look to see if you are on the electoral register and whether you have any CCJs against your name. All of these things (and some others too) will help us decide if we can approve your application.

Don’t forget that before you apply you can find out if you’re eligible, this doesn’t impact your credit score as it’s not a full credit check at this stage; if you move on to a full application thereafter, we do conduct a full credit search. Remember, there are ways in which you can check your credit report, too.

How do I contact you?

If you want more information about how to get a loan online or what alternatives there might be, please don’t hesitate to get in touch with us.

The best way is to give us a call on 02920 548 118. Our lines are open from:

8am – 7pm Monday to Saturday
9am – 5pm Bank holidays

Closed – Sundays

You can also use our web or app chat service.

Apply for a 118 118 Money Credit Card

Want to apply for a credit card with 118 118 Money? You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

Read what our customers think about us

Online Loans FAQs

Our online loans are built to ensure affordability – for you to have enough cash to control your monthly household budget not just this month but each and every month. We can lend between £1,000 and £5,000, which you can choose to repay over one-to-three years.

Applying is easy using our online application and if approved, your online loan can be transferred to your account within 24 hours. If you find yourself with more cash available during any month, you can always make an extra payment with no penalty fee.

Our easy online loans are designed to help you cope with any surprises that might come your way. For example, you may need the money for:

Yes, we are direct lenders of online loans in the UK. That means that you don’t have to worry about going through any brokers. Instead, you’ll be dealing with 118 118 Money every step of the way – from application to repayment.

When you apply with us, we look at more than just your credit score. We can never guarantee that you will be approved without knowing your specific circumstances but an online loan for bad credit could still be an option because we consider applications from those with imperfect credit backgrounds.

If you are unsuccessful but then your circumstances improve and you want to apply again, we welcome you to do so after 180 days. You should, however, bear in mind that applying for several loans in a short space of time could negatively impact your credit score.


Ready to apply for a credit card from 118 118 Money?

You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.