Looking for a 12-month loan? CashLady could help you search.
CashLady is a credit broker with access to a panel of over 30 lenders, all authorised and regulated by the Financial Conduct Authority (FCA). Start your search for a suitable 12-month loan today without impacting your credit score.*
What is a 12-month loan?
A 12-month loan gives you the opportunity to borrow a fixed amount of money while repaying the full balance in monthly instalments over the course of one year.
With CashLady, you can search for a 12-month loan between £100 and £7,500.
Other loan amounts and terms are available from our lenders. CashLady makes it possible to search for a loan from £100 to £10,000, with a range of repayment terms between 3 and 60 months, depending on the amount of money you apply to borrow.
12-month loans for bad credit
You could still be considered for a 12-month loan, even if you have bad credit history.
There are a number of lenders in the UK who are willing to consider applications from people with bad credit, and CashLady is proud to work with several of these specialist lenders.
While it may be a relief to learn that you could get a 12-month loan for bad credit, please bear in mind that a bad credit loan could come with a higher interest rate.
What can a 12-month loan be used for?
People who apply for a 12-month loan typically need the funds to cover an unexpected expense. This could include repairs for a car that’s failed its MOT, a replacement for a broken fridge, or an unexpected bill.
You should never apply to borrow money unless you’re certain that you can afford to repay it. A loan is a serious financial commitment, and it’s vital to do thorough research before you decide.
5 things to ask yourself before searching for a 12-month loan
1. Is this expense really urgent?
When a financial emergency occurs, it’s natural to feel stressed, but it’s important to take a step back from the situation and think outside the box. The washing machine might have packed up, but do you need to replace it NOW, or could you use a nearby laundrette, or a friend or neighbour’s machine instead, while you save up the money?
2. Is a loan the best option for me at this time?
If the expense can’t wait, is a loan the best solution for you? Could you borrow money from family or a friend? Do you have any savings that you could use? While dipping into savings can feel disheartening, it will save you money in the long run, as using your own funds will prevent you from having to pay interest.
3. Can I afford to repay a loan?
When you take out a loan, you pay interest on the money you borrow. Interest is added to your monthly repayments. Before applying for a loan, you will need to be 100% certain that you can afford to make your repayments as well as cover the cost of your essential outgoings, such as bills and food.
4. Do I understand how a loan could affect my credit score?
A late or missed repayment on your 12-month loan will harm your credit score. In turn, this could negatively affect your chances of being considered for credit in the future.
5. Have I considered other repayment terms?
The repayment terms available to you will depend on the amount of money you apply to borrow, but you may wish to weigh up the pros and cons of different durations. A loan with a shorter term will give you less time to pay back the money you owe, but you’ll pay less interest. A longer term could help you spread the cost of borrowing, although you will pay more interest overall.
Who can search for a 12-month loan?
If you’re confident that a 12-month loan is a suitable solution for your situation at this time, you’re welcome to use CashLady to help with your search if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account; and
- Have a regular source of income paid into your bank account.
Search for a 12-month loan with CashLady in five simple steps
Step one: complete our five-minute online form.
Step two: we’ll use soft search technology to look into your financial history and scan our panel of lenders for a suitable loan, based on your personal circumstances.
Step three: if you’ve been matched with a 12-month loan, you’ll be redirected to the lender’s website. If you’d like to make a full application with the lender, a creditworthiness assessment will be completed, and this will include a hard search or Open Banking.
Step four: once the lender’s checks have been completed, they will let you know whether you’ve been approved to borrow the money. At some point in the application journey, you’ll be sent a loan agreement, which will include important details, including your repayment terms.
Step five: if approved, your lender will let you know when you can expect your money to be sent. Some of the lenders on the CashLady panel could send your money the same day your application is accepted.**
12-month loans: soft search vs hard search
A soft search gives credit brokers and lenders a brief overview of your financial history and will not impact your credit score. A soft search will not be visible on your credit file to other companies.
A hard search offers a more in-depth view of your finances and will be visible on your credit file for up to 12 months. Multiple hard searches in a short space of time will cause your credit score to decline.
What’s Open Banking?
Open Banking is a secure procedure used by authorised third parties, such as lenders. Once you’ve provided your consent, the lender will access your recent financial activity via your online bank account. Please note that third parties cannot make changes to your account, and you can withdraw your consent at any time.
Open Banking is used by certain lenders as part of their creditworthiness assessment. This provides them with a more up-to-date insight into your financial habits. This could be particularly helpful for those with a history of bad credit whose financial situation has since improved.
Can I repay a 12-month loan early?
This will depend on the lender. If you’re in a position to repay your 12-month loan before the term comes to an end, you should check whether the lender will charge an early repayment fee. This information can usually be found in your loan agreement, which is usually sent by your lender either during or after the application.
What happens if I’m late making a repayment on my 12-month loan?
It’s important to make your repayments on time and in full each month.
If you make a late repayment or miss one altogether, the information will be fed back to the credit reference agencies (CRAs), and this will have a negative impact on your credit score.
Struggling with money and worried about an upcoming repayment? Your lender will be able to talk through any options that may be available to help you through this difficult time. Don’t delay in reaching out to them and explaining the situation.
Get free financial advice
Whether you’re concerned about money management or debt, please know that help is available from the following charities and organisations: StepChange, MoneyHelper, Citizens Advice and National Debtline.
*If you’re matched with a loan and choose to make a full application directly with the lender, a creditworthiness assessment will be carried out by that company. This could include a hard search, which will be visible on your credit file for up to 12 months. Undergoing multiple hard searches in a short space of time will harm your credit score.
**Payout timescales vary between lenders. The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.