So we’re a loan provider and yet we’re asking whether you should get a loan? Shouldn’t we be saying you must take on of our awesome loans?

Truth is we want you to do what is right for you and there are a number of things to consider if you are thinking about borrowing money.

Our customer service team has a 99% positive feedback rating from genuine customers on the world’s most trusted ratings and reviews site, We pride ourselves on giving honest and impartial support.

If we force you into taking a loan that isn’t right for you then you could suffer financially in the future and that wouldn’t be healthy for you or us.

“Didn’t feel pressured and was flexible in what I wanted and how much I can afford to pay back” Customer review on

Reasons to get a loan           

  • To consolidate debts, reduce monthly payments, and get debt free quicker
  • The interest rate you pay on a personal loan is also usually fixed
  • It is a more structured way of covering unexpected costs like a vets bill or car repair
  • Good deals are available by comparing online lenders
  • Loans for home improvements can increase value of your home
  • Reinvestment into your business can help increase your income
  • Loans can help put you in a stronger financial position
  • It can improve your credit score
  • By paying off loans on time it demonstrates to future lenders your ability to pay off debt
  • It can help you avoid taking other credit options which are harder to control, i.e. it is easy for debt to escalate with a credit card where there is no fixed repayment plan

Reasons not to get a loan

  • Saving is a better option in many cases
  • Excitement of special occasions (wedding) or big purchases (car/holiday) can cloud your judgement
  • Too much debt can affect your credit report
  • You maybe tempted to borrow more than you need
  • It’s a medium to long-term financial commitment
  • Late payment fees can be costly
  • It can weaken your financial position
  • Loans, especially when they are poorly managed, could affect your chances of getting other credit in the future on something you might need more (such as a mortgage or car) 

When credit cards are better

Ask yourself how often you need credit, how much you’ll need, and do you have the discipline the pay the debt off.

Some credit cards offer great interest rates and, if you can regularly pay off the balance in full, you won’t incur any scary interest or fees. Some credit cards even offer 0% interest on balance transfers so you maybe able to consolidate debt and pay it off quicker than a loan.

When loans are better

Credit card companies make a lot of money off people who end up only paying off their minimum payments each month. It is a well-publicised reason why so many people have got into unmanageable debt.

Also the higher the credit amount the harder it is to keep the discipline of paying off a credit card, especially if you are struggling financially one month or are looking to make a big purchase.

Therefore a loan is a more conscientious financial decision that provides you with a more structured repayment plan, so your debts don’t escalate out of control.

The difference between unsecured personal loans and secured personal loans

Unsecured loans are supported by your creditworthiness rather than by collateral. Unsecured loans enable you to borrow money without offering up security – such as your home or car. If you miss payments then it will affect your credit rating and will cost you money in fees, but you aren’t at risk of losing your house/car.

A secured loan uses a valuable asset of yours as collateral for the loan. Secured loans are generally higher in value, over longer repayment terms and at cheaper interest rates. But if you regularly miss payments and/or cannot pay the loan back, the creditor could take possession of your asset.

Choosing the right personal loan?

There are many options to find a personal loan that suits you. Research the lowest interest rates and whether the loan has any hidden costs.

The Money Saving Expert recommends you borrow as little as possible and repay as quickly as possible as borrowing too much can cause debts to spiral out of control especially if something unforeseen happens like losing your job.

Why come to 118 118 Money for a personal loan? 

The 118 118 Money team will give you honest credit advice. We believe in honesty and transparency. We have a fantastic customer service team and like to make our customers smile – we even refund you interest on your birthday!

How to get a personal loan?

If you have decided that a loan is the best option for you, then it’s important to make sure you get the best deal when applying. Read our guidance page on how to get a loan.

Apply Now

Feel free to contact the 118 118 Money team on 08000 118 000 or 02920 893300*. We’re available for you 24/7

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.

(*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.)