Compare £8,000 personal loans

A personal loan enables you to borrow a lump sum of money that you then repay in fixed monthly instalments over a set term. Interest rates can be particularly competitive for sums of between £7,500 and £15,000, so it could be a great option for those looking to borrow £8,000.

How to apply for an £8,000 loan

To apply for an £8,000 loan, you’ll first need to shop around and compare your options. Personal loans can typically be paid off over a period of 1 to 7 years, so you’ll need to think about what term length works best for you. Keep in mind that a longer repayment term will keep your monthly repayments low, but you’ll also end up paying more interest, making it more expensive overall.

When running your comparison, it’s worth changing the length of your repayment term to see what effect it has on your monthly repayments. Once you’re happy you can afford them, you can click through to apply.

As part of your application, you’ll usually need to provide details such as:

• Your name and date of birth
• Your current address, plus your address history for the past 3 years
• Your employment details
• Your salary
• Your bank details

What is the eligibility criteria?

As with any type of credit, having an excellent credit score will increase your chances of getting accepted for an £8,000 personal loan, as well as give you access to the best interest rates. You’ll also need to be over the age of 18 and a UK resident.

Your chances of acceptance will also be higher if you have a regular income and stable job as this will help prove to lenders that you’ll be able to keep up with your monthly repayments.

Before making your loan application in full, use a free eligibility checker as this will show you which loans you’re more likely to get accepted for without hurting your credit score. Eligibility checkers only run a “soft” credit search which other lenders won’t be able to see on your credit record.

In comparison, a “hard” credit search is carried out whenever you make a full application for credit, and this will be visible on your credit file. Too many applications in a short space of time can make you look desperate for credit and providers may prefer not to lend to you as a result. A hard search will have a small, but usually short-lived, negative impact on your credit score, while a soft search will have no effect.

What will my monthly repayments be?

The table below gives you an idea of how much you might pay each month on an £8,000 loan, depending on the interest rate and repayment term.

Each repayment will be made up of a portion of the capital (the amount borrowed), plus interest. At the start of the loan, you’ll chip away at the capital gradually, but by the end of the loan, each repayment will go almost entirely towards paying off the capital.

Can I get an £8,000 loan with bad credit?

You’re more likely to get accepted for an £8,000 loan if you have a good credit history. However, if your credit score is poor, you’ll still have options available to you. Some specialist lenders will be more willing to offer loans to those with bad credit, but it’s important to note that you’ll usually be charged a higher interest rate, so your loan will be more expensive.

To help you find the best loan for your circumstances, it can be worth using a loan matching service. Here, a broker will run soft search credit checks with multiple lenders to see who would approve you.

Could I get a cheaper loan with a guarantor?

If you’re struggling to get a personal loan due to poor credit, a guarantor loan could be an option worth exploring. But you’ll need to find a family member who is prepared to cover your loan repayments if you are unable to. They will usually need a good credit rating, be aged 21 or over and be a homeowner.

Both you and the guarantor will be legally responsible for repaying the loan, so make sure your guarantor is completely comfortable with this before proceeding. Also keep in mind that while having a guarantor can increase your chances of acceptance, it can be a more expensive option. Interest rates on guarantor loans tend to be higher, so make sure you could afford the higher monthly repayments.

What can the loan be used for?

You can use an £8,000 personal loan for almost anything, but popular options include paying for:

• A wedding
• A dream holiday
• A new car
• Home improvements
• Debt consolidation

Frequently asked questions

• Will I be asked what I’m using the loan for?

  Yes, most loan providers will ask you what you plan to use the loan for when you make your application – you’ll usually need to select your choice from a range of options.

• What credit score do you need to get a loan?

  The higher your credit score, the more likely you are to get accepted for a loan and the more competitive the interest rate you’ll secure. If your credit score is poor, some loan providers will still offer you a loan, but the interest rate will be higher.

• What’s the cheapest way to borrow £8,000?

  This will depend on your circumstances and your credit history. If your credit score is good, a personal loan will be one of the cheapest choices available to you, but always compare your options to be sure.