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£7,000 loan calculator
Table: sorted by representative APR, promoted deals first
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
If you’re looking to borrow a sum of around £7,000, whether you’re paying for a new car or home improvements, a personal loan is worth considering.
Personal loans let you borrow a fixed amount and then repay it in fixed monthly instalments over a set term, making it easier for your budget. Interest rates are often competitive too.
How to apply for a £7,000 personal loan
The first step to applying for a £7,000 personal loan is to shop around and compare your options. Although you already know how much you want to borrow, you’ll need to have an idea about how long you require to repay it.
Personal loans can typically be paid off over a period of 1 to 7 years. The longer the repayment term, the lower your monthly repayments will be. But you’ll also end up paying more in interest, making it more expensive overall.
When comparing options, it’s worth changing the length of the repayment term to see how it affects your monthly repayments. Make sure you can afford them before you click through to apply.
When you’re ready to make your application, you’ll need the following details to hand:
- Your name and date of birth
- Your current address and address history for the past 3 years
- Your employment details, including your salary
- Your bank details
What is the eligibility criteria for a loan?
As with any type of credit, to qualify for the best interest rates you’ll need a good credit score. You’ll also need to be over the age of 18 and a UK resident.
In addition, you’ll stand a better chance of getting accepted for a loan if you have a regular income. Without this, lenders may be concerned about your ability to keep up with the loan repayments.
Before you make a loan application in full, it is worth using a loan eligibility checker. This will give you a good indication of how likely you are to be accepted for a loan, without damaging your credit score. This is because eligibility checkers only run a “soft” credit search which won’t be visible to other lenders.
In comparison, when you make a full loan application, a “hard” credit search will be carried out which will be visible on your credit file. Too many hard searches in a short space of time can make you look desperate for credit and lenders may be more reluctant to let you borrow.
A hard search will have a small, but usually short-lived, negative impact on your credit score, while a soft search won’t have any effect at all.
What is the monthly payment on a £7,000 loan?
The table below shows some examples of how much you might pay per month on a £7,000 loan, depending on the interest rate and repayment term.
| 5.0% p.a. interest | 10.0% p.a. interest | 20.0% p.a. interest | |
|---|---|---|---|
| 1-year term | £599.25 | £615.41 | £648.44 |
| 2-year term | £307.10 | £323.01 | £356.27 |
| 3-year term | £209.80 | £225.87 | £260.15 |
| 4-year term | £161.21 | £177.54 | £213.01 |
| 5-year term | £132.10 | £148.73 | £185.46 |
| 6-year term | £112.73 | £129.68 | £167.67 |
| 7-year term | £98.94 | £116.21 | £155.44 |
Each repayment is made up of a portion of the amount borrowed (the capital), plus interest. At first, you’ll chip away at the capital relatively slowly, but by the end of the loan, each repayment will go almost entirely towards paying off the capital.
What credit score do you need to get a £7,000 loan?
To qualify for the most competitive personal loan interest rates, you’ll need an excellent credit score. If your credit score is below par, you may be offered a higher interest rate or be turned away completely.
Under Financial Conduct Authority (FCA) rules, lenders must offer the advertised annual percentage rate (APR) to at least 51% of successful applicants for the loan. The remaining 49% are likely to pay a higher rate.
Before applying for a loan, it’s worth using a free online service to check your credit score so that you won’t be in for any nasty surprises. If your score isn’t as good as it could be, take steps to improve it such as checking that you’re registered on the electoral roll, paying bills on time and correcting any errors on your credit report. Spacing out any credit applications by between 3 and 6 months will also help.
Can I get a £7,000 loan with bad credit?
Although most lenders will require you to have a good-to-excellent credit score before they will accept you for a £7,000 loan, there are specialist lenders who will lend to those who have less than perfect credit histories. However, be aware that this will usually involve paying a higher interest rate, so you’ll need to compare your options carefully.
To help you with this, it can be worth using a loan matching service, where a broker will run soft search credit checks with several lenders to see who would approve you. All you will need to do is fill in an online form.
Could I get a cheaper loan with a guarantor?
If your credit score is preventing you from getting accepted for a personal loan of £7,000, another option to consider is a guarantor loan.
With this option, you’ll need to find a family member who is willing to step in to cover the loan repayments if you are unable to. Both you and your guarantor will be legally responsible for repaying the loan so it’s important that your guarantor understands the risks. Your guarantor will usually need a good credit rating, be aged 21 or over and be a homeowner.
Keep in mind that while having a guarantor can increase your chances of getting accepted for a loan, it can be an expensive option. Interest rates can be much higher which means your monthly repayments will also be more expensive. Make sure you can afford these repayments before you agree to anything.
What can the loan be used for?
When applying for a loan, you’ll usually be asked to specify what you plan to use the funds for. You can use a £7,000 personal loan for a wide range of purposes, including to help pay for:
- Home improvements
- A wedding
- A dream holiday
- A new car
You can also use your loan to consolidate existing debt into a single manageable, and hopefully cheaper, monthly payment.
Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.
Late repayments can cause you serious money problems. See our debt help guides.
Will you be approved?
Check your personalised rates and likelihood of acceptance.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
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