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What is an online loan?

Any loan applied for over the internet can be called an online loan, including all short-term loans and instalment loans. The application and decision-making processes are usually simpler and quicker online with no need to walk into an office for an extensive interview about you and your situation. The lender will usually conduct a credit check based on your background and current financial situation, and can sometimes make a decision within a few hours. Some lenders prefer to speak to you on the phone before releasing any money and want to build a relationship with you for the future.

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Representative APR 49.9%

Representative example: Amount of credit: for months. Interest rate: 41.2% pa (fixed). scheduled monthly payments of . Total amount payable: . Representative 49.9% APR.
Representative example: Amount of credit: for months. Interest rate: 41.2% pa (fixed). scheduled monthly payments of . Total amount payable: . Representative 49.9% APR.


There are lots of differences between lenders and the loans they provide, and you will need to search for an option that suits your own needs. There are a number of disadvantages to short-term loans, and they often have higher interest rates which can have unwelcome effects on your finances, but there are more affordable alternatives such as unsecured online loans or instalment loans which mean you can borrow money over longer periods for lower Annual Percentage Rates (APRs). You can use our loan calculator to find out which 118 118 Money loan would be best for you.

How does an online loan work?

You will be able to apply for a loan through the lending company’s website. Sometimes the lenders will have tools available to help you find the right loan option for you, such as our budget worksheets that will help you work out how much you can afford to repay. Some sites also allow you to do a quick credit check using non personal details,, so you can instantly see the likelihood of you getting approved without impacting your credit profile.

How can I choose the right online loan?

Choosing the right online loan is an important decision. There are many things you need to think about before entering into a loan contract, which our experts discuss in our how to get a personal loan section. Start by identifying how much you can afford to repay each month once you take away your fixed outgoings and this will help you to understand how much money you can afford to borrow. You should also think about what fees will be charged and the best repayment period for you. Are there any hidden fees or costs you should be aware of?

It is also worth looking into whether you can find a better APR for the amount that you want to borrow. Even if your credit score is less than perfect, some lenders like 118 118 Money will work with you to help you get back on your feet. For that reason it’s really important to choose a lender you trust and that you can talk to. This relationship can extend well beyond this first loan and together you can protect your financial future.

Our lending guide articles will help you with your decision while our money guidance section will help you to understand your finances and build a solid financial foundation for the rest of your life.

How do 118 118 Money loans work?

118 118 Money was created to help people like you and fill a hole in the lending market between bank loans and short-term loans. We look at more than just your credit scores. We spend time understanding your credit worthiness and getting to know who you really are.

Our 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. Our personal loans are from £1,000 to £5,000, which you can choose to repay over 12 months to 36 months.

Our loans have no upfront or hidden fees, guaranteed. Applying is easy using our online application and 50% of the time we are able to make a decision within an hour. If approved, the cash you borrow is sent to your bank within 24 hours.

People tell us 118 118 Money is straightforward, honest and fair. If any unexpected expenses or situations arise (for example, dental bills, home repairs or car repairs), you can contact us. If you find yourself with more cash available during any month, you can always make an extra payment with no penalty fee.

Together we can start planning for your stress-free tomorrow.

Representative 49.9% APR.