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Unsecured Loans

  • Borrow £1,000 - £5,000
  • Repay over 12 – 36 months
  • 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 £2,000 for 24 months. Interest rate: 41.2% pa (fixed). 24 scheduled monthly payments of £123.64. Total amount payable: £2,967.43 Representative 49.9% APR.

What is an unsecured loan?

Sometimes referred to as a personal loan, an unsecured loan is one that allows you to borrow money without the loan being secured against any asset. Rather than being secured by collateral, being accepted for unsecured loans is based on your previous borrowing history and the affordability of you repaying the loan. The better your credit score, the more likely you are to be successfully accepted for one, although you can sometimes get an unsecured loan with bad credit.

While missing payments can negatively affect your credit rating or bring extra charges (or other implications like litigation or bankruptcy); having an unsecured personal loan means the lender can’t immediately take your house or car (though other implications may arise). So if an unexpected or emergency expense pops up that you may not have budgeted for, an unsecured loan can provide a solution.

Apply for a personal loan from 118 118 Money
How much would you like to borrow?
How much would you like to borrow?
Monthly Repayment £0
Representative APR 49.9%
Check my eligibility This won't affect your credit score
Representative example: Amount of credit: for months. Interest rate: 41.2% pa (fixed). scheduled monthly payments of . Total amount payable: . Representative 49.9% APR.
Some features of an unsecured loan

There are many different features of an unsecured loan in the UK, generally these can vary from one lender to another.

Typically you can apply for an unsecured loan online, some lenders can even transfer the funds into your account on the same day.

An unsecured loan with bad credit can also offer a solution for those with a poor credit score.  Although credit rating is important, some personal loan providers do consider applicants with a less than perfect credit history.

In addition to not having to secure an asset against the borrowing, unsecured loans are more widely available than a secured loan. The interest is typically fixed too, so you know exactly what your repayments look like.

Unsecured loans can also be used to consolidate debt, making sure all your repayments are in one place.

3 simple steps to a personal loan
Check your eligilibility with no impact to your credit score
Check our offer, set up your Direct Debit and sign
Receive funds in 15 minutes*
Try our eligibility checker today, with no impact on your credit score.
Check my eligibility This won't affect your credit score
* This can vary from 15 minutes - 2 hours depending on your bank

Secured loans vs unsecured Loans

The main difference between secured and unsecured loan options is that a secured loan is taken out against an asset, whereas unsecured loans are not. Because of this security, it also means that generally you can borrow a higher amount with a secured loan and benefit from a much longer repayment period with lower interest rates.

Secured loans are usually used for much bigger purchases and expenses, such as getting a new kitchen or home extension. This type of loan can be secured against your home, car, jewellery, or other assets to the value of the loan amount.

Because a secured loan is secured against an asset, this is viewed as a ‘less risky’ option for the lender. Typically this is reflected with lower rates of interest on a secured loan compared to an unsecured one. However some secured loans are repaid over a long period, so overall interest costs need to be considered too.

On the other hand, generally featuring lower amounts and shorter repayment periods, unsecured loans are typically used to cover ‘smaller’ borrowing needs.

118 118 Money loans are offered on an unsecured basis, so there is no need to secure this borrowing against any asset (missed or late repayments will incur a £12 charge).

Can I get an unsecured loan with bad credit?

Firstly, there is no such product called ‘an unsecured bad credit loan’. But there are some lenders whose products cater for those with bad credit, for ease of use these are naturally referred to as bad credit loans. They tend to be traditional loans, but as they are aimed at those with either bad, low or no credit, they are often labelled as unsecured loans for bad or poor credit. They often function under the same premise as a traditional loan, so they are likely to be fixed term and fixed rate loans, very similar to those loans provided by high street lenders too. Examples of this are payday loans which are borrowed for a short period but have a high interest rate.

So yes, you can get a loan if you have an imperfect credit past, but the rates you’re likely to be eligible for may be higher than if you have a good credit profile.

118 118 Money’s personal loans range from £1,000 to £5,000 repaid over 12 – 36 months, and yes, we do consider applications from those who don’t have a perfect credit past. We don’t guarantee success when applying, but you can use our pre-application eligibility checker to see if you’re likely to be accepted or not.

Are unsecured loans available without a credit check?

No. All regulated lenders are legally bound to complete a full credit search if you apply for a loan, secured or unsecured. Credit searches are undertaken by lenders to ensure that you can commit to the credit agreement and the loan amount is affordable. Lenders refer to the information held at credit reference agencies which provide them with a view to your credit history. If you’ve had missed or late repayments, these are all visible on your credit file.

Credit searches are also done to ensure your personal information matches up with the information held at credit reference agencies, this is also done to prevent fraudulent applications.

Many lenders including 118 118 Money offer a pre-application eligibility check service, this provides you with some indication if you’re likely to be accepted or not without the need for a full credit search. This is beneficial if you have poor credit history as you don’t want too many searches on your credit file over a short period as this impacts your credit score negatively.

However, should you be approved for a 118 118 Money unsecured loan using the eligibility checker and you decide to complete a full application, we will conduct a full search; this will be visible to other lenders thereafter.

Are unsecured loans with no-guarantor available?

Guarantor loans — which are co-signed by a third party like a family member or friend — may provide you access to credit with a favourable interest rate, especially if your guarantor has a better credit rating than you. But that's not the only way to get a loan. Even if your credit score isn’t great, 118 118 Money makes it possible to take out unsecured loans with no guarantor needed.

Unsecured loans with no guarantor offer an option if you don’t feel comfortable asking a friend or family member to act on your behalf. At 118 118 Money, we pride ourselves on helping out those who are struggling to get credit or may have been turned down by their bank. Use our eligibility check to assess your chances of being accepted for one of our unsecured loans with no guarantor.

What can an unsecured loan be used for?

An unsecured loan can be used for a variety of purposes. These can range from home renovations and extensions or in some cases, to spread the cost of large purchases.

These types of loans can also be used to cover emergency needs such as a car repair or replacing household goods.

Debt consolidation is another use, by consolidating your debts you may find the monthly repayments are lower.

Given the loan amounts can range from relatively small to much larger amounts, these types of loans are widely available through many high street lenders as well as specialist online providers who may cater for those with low or no credit history.

118 118 Money considers applicants from an imperfect credit past; however we don’t guarantee eligibility as this is dependent on a number of different factors. You could use our eligibility checker to see if you’re likely to be accepted or not, this is done without affecting your credit rating. A full application does require a full credit check.

Are there any alternatives to an unsecured loan?

We recommend you do your own research, but yes, there are alternatives.  The amount you need to borrow and how you can repay may ultimately dictate whether any of the alternative options are suitable. As will your own credit history and the amount you can afford to repay back monthly. So if you require a larger loan but you have a bad credit history then the options are quite limited as you can seem a risky borrower.

If you think securing an asset is an option, then a secured loan can be an alternative that allows you to access larger loans.

If the loan amount you require is relatively small, then short term loans are another option, but these types of loans – albeit unsecured – generally do come with a high interest rate.

Alternatively, dependent on the amount of money you need to borrow, credit cards are also another option. Like all other lines of credit, your own credit history will be also considered. So if you have a less than perfect history, you may find the options available through a credit card can also be limited.

However, 118 118 Money also offer credit cards, and we do consider applications from those who may have had credit related issues in the past. This may be an alternative if you require a smaller amount of borrowing. The 118 118 Money Simple Interest Rate Credit Cards comes with a credit limit of up to £1,200 and a representative 49.0% APR (variable). You can use our eligibility checker to see if you’re likely to be eligible for our credit card, this doesn’t impact your credit score – a full application requires a credit search. This will be visible to other lenders too.

Is an unsecured loan an option for me?

Whether these types of loans are an option is dependent on your own personal circumstances, and we recommend doing as much research as you can.

At 118 118 Money, we offer unsecured loans to UK residents from £1,000 to £5,000 with fixed monthly repayments spread over 12 - 36 months. Use our eligibility checker to find out what your repayments would be based on the amount borrowed and length of repayment.


Apply for a personal loan from 118 118 Money

Want to apply for a personal loan 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.

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Unsecured Loans FAQs

It is possible to get unsecured loans for bad credit from direct lenders. 118 118 Money is a responsible lender, which means we will only consider an application if we are satisfied you can afford a loan with us.  

If you’ve had bad credit in the past, for example, you’ve missed payments in the past; and you are concerned that a rejection could negatively impact your credit score, use our eligibility check. This will not affect your credit score and will give you a good idea of whether you’re likely to be accepted for an unsecured loan with 118 118 Money.

Neither type of loan (secured or unsecured) is easier to get compared to the other. They both require a full financial affordability assessment by the lender as part of the application. Loan applications, or any other type of financial commitment should be thoroughly considered and not be taken lightly.

If used responsibly and repayments are made as agreed with your lender’s terms and conditions, then this type of loan can either improve or help build your credit. However, how you manage your other credit commitments will also be considered. Missed or late repayments will have the opposite impact whereby your credit score will be negatively impacted.

118 118 Money’s loan amounts range from £1,000 - £5,000. These are repayable monthly over a term of 12 – 36 months

Yes it is a personal loan – you can borrow between £1,000 and £5,000 (subject to eligibility) with 118 118 Money. The loan amount can vary from different lenders.

Yes, as well as home improvements, our loans can be used for a number of things including debt consolidation, or as a car loan by funding a deposit or even paying for a second hand car.

Loans and credit cards both have their advantages and disadvantages, and you should do your research on these. Which product is right for you depends on your borrowing needs. With a loan, you’ll borrow a set amount, over a set amount of time, and as long as you have a fixed rate agreement, your repayments will be fixed as well. You’ll repay all of your borrowing over the lifetime of a loan. Credit cards on the other hand give you a line of credit which you can use to make purchases, which you can pay off and reuse.

This will depend on the terms and conditions of your loan. You can make full or partial repayments at any time on your loan from 118 118 Money. You may be entitled to an interest rebate on your loan if you decide to pay all or some of it off early, though we may apply some interest charges on early repayments (as part of the rules on early repayment). This can vary by term length so please refer to your terms and conditions.


You can have more than one loan (you cannot have multiple loans with 118 118 Money however), but whether you get multiple loans will depend on your credit score and whether you can afford it. This helps lenders to understand the creditworthiness of a borrower and shows how reliable the borrower is at repaying their debt. Lenders use  Credit Reference Agencies to check the risk of lending to you.

To apply for unsecured loans in the UK with 118 118 Money you must meet the following criteria:

  • Aged between 18 and 70
  • Hold a current bank account capable of handling Direct Debits
  • Have a consistent monthly take home pay of at least £1,000

At 118 118 Money, we realise you’ll want to shop around and compare different unsecured loans. That's why we promise to keep your loan offer valid for up to 5 days just as long as your circumstances don’t change. Once you’ve decided to apply you will receive an instant decision.

To apply for unsecured loans in the UK, you need to supply your full name, contact details, address history for the , income and outgoings. Our budget planner can help to work out some of these costs and the more detailed your application is, the more likely it will be that you are accepted. If your application for an unsecured loan is successful, you could have your cash in 15 minutes.*

 *This can vary from 15 minutes to 2 hours depending on your bank.

Want to apply for a personal loan 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.