If you’re 18 years old and above, find out which loans young people are eligible for by searching our table below.
Lender | Minimum age | Minimum income | Customer type | Link |
---|---|---|---|---|
RAC Personal Loans ![]() |
21 | £15,000 | Not specified | Check eligibility |
Progressive Money ![]() |
18 | No minimum income specified | Not specified | Check eligibility |
TrustTwo ![]() |
18 | Must have an income | Not specified | Check eligibility |
Lendable ![]() |
18 | £800 per month | Not specified | Check eligibility |
Buddy Loans ![]() |
18 | No minimum income specified | Not specified | Check eligibility |
Amigo ![]() |
18 | No minimum income specified | New or existing customers | Check eligibility |
Everyday Loans ![]() |
18 | No minimum income specified | Not specified | Check eligibility |
George Banco ![]() |
18 | No minimum income specified | Not specified | Read our review |
Guarantor My Loan ![]() |
21 | No minimum income specified | Not specified | Check eligibility |
118 118 Money ![]() |
18 | £700 per month | New or existing customers | Check eligibility |
NatWest ![]() |
18 | No minimum income specified | Existing customers only (NatWest Current Account held for 3+ months) | Check eligibility |
Royal Bank of Scotland ![]() |
18 | No minimum income specified | Existing customers only (Royal Bank of Scotland held for 3+ months) | Check eligibility |
Likely Loans ![]() |
18 | £5,000 per year | New or existing customers | Check eligibility |
Bamboo ![]() |
18 | No minimum income specified | New or existing customers | Check eligibility |
John Lewis Financial Services ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
1plus1 Loans ![]() |
18 | No minimum income specified | New or existing customers | Check eligibility |
Zopa ![]() |
20 | £12,000 per annum | New or existing customers | Check eligibility |
Lending Works ![]() |
20 | No minimum income specified | New or existing customers | Check eligibility |
Hitachi Personal Finance ![]() |
21 | No minimum income specified | New or existing customers | Check eligibility |
My Community Bank ![]() |
21 | £18,000 per year | New or existing customers | Check eligibility |
Oplo ![]() |
21 | £15,000 per year | New or existing customers | Check eligibility |
Post Office Money ![]() |
21 | £12,000 per year | New or existing customers | Check eligibility |
AA ![]() |
21 | £12,000 per year | New or existing customers | Check eligibility |
On Stride ![]() |
18 | Must have a regular income | Not specified | Read our review |
Shawbrook Bank ![]() |
21 | £15,000 | Not specified | Read our review |
Leap ![]() |
21 | £25,000 per annum | Not specified | Read our review |
Azure Money ![]() |
21 | £1500 per month | Not specified | Read our review |
Bank of Scotland ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
M&S Bank ![]() |
18 | £10,000 per year | New or existing customers | Read our review |
Barclays Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
Ulster Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
AIB ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
Halifax ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
HSBC ![]() |
18 | £10,000 per year | New or existing customers | Read our review |
Virgin Money ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
Nationwide BS ![]() |
18 | £700 per month | Existing customers only | Read our review |
Monzo Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
Sainsbury's Bank ![]() |
18 | £7500 per year | New or existing customers | Read our review |
Tesco Bank ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
Danske Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
TSB ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
MBNA Limited ![]() |
18 | No minimum income specified | New or existing customers | Read our review |
Lloyds Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
First Direct ![]() |
18 | No minimum income specified | Available to first direct 1st Account holders | Read our review |
Admiral ![]() |
18 | £10,000 per year | New or existing customers | Read our review |
Starling Bank ![]() |
18 | No minimum income specified | Existing customers only | Read our review |
Santander ![]() |
21 | £6,000 per year | New or existing customers | Read our review |
cahoot ![]() |
21 | £6,000 per year | New or existing customers | Read our review |
TFS Loans ![]() |
21 | No minimum income specified | New or existing customers | Read our review |
Metro Bank ![]() |
21 | No minimum income specified | New or existing customers | Read our review |
Bank of Ireland UK ![]() |
21 | No minimum income specified | New or existing customers | Read our review |
JN Bank ![]() |
21 | £1,000 per month | New or existing customers | Read our review |
Creation Financial Services ![]() |
23 | £9,600 per year | New or existing customers | Read our review |
What's in this guide?
What loans are available to young people?
Turning 18 can be exciting. After all, you’ll now be legally allowed to vote and drink. You’ll also be able to take out a loan.
However, getting a first time loan as a young person may be more difficult than simply applying and getting approved. When you’re young, you have little to no credit history which means lenders cannot assess how reliable you are as a borrower. You may also not have much in the way of savings. This means your loan options may be more limited. However, the good news is you may be able to access one of the following options:
Personal loans
A personal loan lets you borrow a fixed sum of money over a fixed term and you repay this in monthly instalments. To increase your chances of getting accepted when you’re young, it can be worth applying with your current bank.
You’re likely to have a history with your bank, including a current account and savings account, so they may be more willing to give you a loan. The downside is that they may not have the best rate on the market.
Alternatively, you could compare other lenders and use an “eligibility checker” or “soft search” which will show you the loans you’re more likely to get accepted for without damaging your credit score.
Guarantor loans
With a guarantor loan, a friend or family member guarantees the loan you apply for. This means that if you are unable to repay the loan, your guarantor will be responsible for paying it off.
Car loans
If you’re looking to buy a car, there’s a number of different car finance options to suit a wide range of monthly budgets.
Student loans
If you’re planning to go to university, you’ll be able to apply for a student finance, including a tuition fee loan and a maintenance loan to help with your living costs. You’ll repay this loan once you’ve graduated and start earning above a certain income threshold.
Arranged overdrafts
If you’re a student, there are student bank accounts available with very favourable overdraft terms. If you’re not, an arranged overdraft can offer you flexibility but you’ll want to look closely at the fees and interest charges involved.
Loans jargon explained
- APR. The annual percentage rate (APR) takes into account the headline interest rate as well as any compulsory charges.
- Representative example. Used to show consumers the standard costs that would apply to most successful loan, credit card or mortgage applicants.
- Interest rate.The interest rate is a charge for borrowing and is a percentage of the amount of credit.
- Eligibility. This is how likely you are to get accepted for a credit product such as a loan, and will take a number of factors into consideration.
Should I take out a loan for young people?
Before taking out a loan it’s crucial to work out whether you would be able to afford to repay it. This can be much harder when you’re young because your financial circumstances are likely to be more changeable and less established.
Consider whether you really need to borrow the money and if you do, whether you could use an alternative, cheaper option such as a credit card or overdraft. If you still want to apply for a loan, it’s a good idea to start small and borrow a small amount over a short term.
Can I get a loan at 18 years old?
Yes, once you turn 18, you’re eligible to take out a loan or other credit product. Whether you’ll be able to get a loan will depend on a range of factors:
- You’re a UK resident
- You don’t have a bad history of credit
- You have a regular income
- The loan won’t be used for purposes such a gambling or business
What is a credit score and how does it affect me getting a loan?
Your credit score is used by lenders to determine your creditworthiness. If you have a good credit score, this indicates to lenders that you have paid back debts in the past and have not missed payments. The higher your credit score, the more likely you are to get accepted for a loan.
If you get accepted for a loan and repay it on time, your credit score will gradually improve. However, if you miss payments and default on the loan, this will be recorded on your credit report which could negatively affect your credit score.
How can a young person improve their credit rating?
Firstly, check you’re registered on the electoral roll as this will show lenders you have a fixed address. Next, check your credit report to see if there are any errors. If there are, contact the credit reference agency to get them corrected.
Also ensure you pay bills on time and if your landlord includes your bills in your rent, ask if your name can be put down on some of them.
5 tips for getting first time loans
- Show that you can save. If you can show the lender you’re good at saving, the lender may be more willing to approve you. A steady savings history will work best with your current bank as they can view your account information when you apply.
- Apply for a lower amount. Start small. Applying for too much when you have little credit history or don’t earn a high income can be a red flag to lenders and result in an automatic rejection. Instead, opt for a lower amount and prove to lenders that you’re a responsible borrower.
- Get on the electoral roll. Now that you’re old enough and have the power to vote, get yourself registered! This has the added bonus of bolstering your credit score.
- Get a letter from your employer. If you’re only employed casually or have not been employed for long, a letter from your employer stating the security of your employment may help your application.
- Offer a deposit. Buying a car? A deposit when you apply for a car loan shows you’re in a good financial position. The larger the deposit, the less you need to borrow, and the more likely an approval may be.
How to compare loans for teens and young people
The quickest and easiest way is to use Finder’s personal loan comparison tables. Compare interest rates carefully and aim to keep the overall cost as low as possible, while ensuring you can still afford the repayments.
Once you’ve found a suitable loan, check whether you’re eligible, whether there are any fees and how much you will be able to borrow.
- The overall cost.
This should be your primary focus when considering different loans (or other types of credit). Aim to keep the overall cost as low as possible while ensuring you can afford the repayments. - Whether you’re eligible
At 18 years old or as a young person, you may well find that the lenders offering the best rates aren’t interested in you. That’s because each lender has a limited pool of funds to lend out, and they’ll aim to lend it to the safest prospects they can, to reduce the risk of losing any money if a borrower defaults on (fails to repay) their loan. But this doesn’t mean you can’t shop around. Use our “soft search” eligibility checker to quickly ascertain whether or not you’re likely to get approved. - The interest rate.
Is the rate competitive? Is it fixed or variable? A fixed rate will remain the same for the full term of the loan, while a variable rate could change. Don’t forget, when a lender promotes their fantastic “representative APR”, they’re not going to give this headline rate to every borrower that comes along. They’re only obliged to award it to 51% of borrowers, and with a limited credit history, you’ll be more likely to be offered a “personalised” (meaning higher) rate. - How much you’re able to borrow.
Lenders offer varying minimum and maximum loan amounts, but what you’ll be allowed to borrow will ultimately depend on what you can the lender deems you can afford to repay. Lenders must lend “responsibly”, which means considering each borrower’s unique situation (income, outgoings, job stability, credit history etc.) to ensure they are only offered loans that are affordable. - Early repayment terms.
Clearing expensive debt can save you money in interest, but different products have different early-repayment terms. Will paying the money back early have a penalty? Will it actually save you any money? It’s worth checking before you apply. A fractionally better rate that comes with unforgiving early-repayment terms could be a false economy. - Any special features of the offer.
It’s important to take into account any value-adding features of any credit, whether it’s cashback on a loan or a points scheme on a credit card. Weigh up the real financial benefits of these, but try not to to be blinded by an exciting promotion. - The fees you’ll be charged.
There are different types of fees you can be charged, ranging from setup fees to annual fees and early repayment fees. Find out what fees are associated with your loan before signing on the dotted line.
Personal loan cost comparison
Loan amount: £5,000
- Loan term: 3 years
- Interest rate: 19.9%
- Monthly repayment: £181
- Total interest: £1,533
Loan amount: £5,000
- Loan term: 3 years
- Interest rate: 29.3%
- Monthly repayment: £201
- Total interest: £2,250
What about a broker?
A broker will find the best rate available to you from its panel of lenders, taking into account your individual circumstances. Normally this service is free, because the broker will earn a referral fee from the lender.
As long as you bear in mind that they don’t normally scan the whole market, but a subsection of lenders with whom they have an arrangement in place, then a broker can take the strain out of finding a competitive deal.
At Finder, we run soft searches with a range of lenders in seconds, meaning that without any impact on your credit score you’ll be able to get realistic rate quotes for loans you’re likely to be approved for. This can be a really smart way to avoid disappointment, protect your credit record and to only focus on lenders who are likely to approve you.
Alternatives to loans for 18 year olds and above
Used correctly, credit builder cards can help you to improve your credit score over time. However, they typically come with low credit limits and high interest rates so it’s important to pay off your balance in full each month.
Alternatively, you could speak to your bank about extending your overdraft and asking for more favourable conditions. Interest rates on overdrafts can be high so they may not always be the best option.
Pros and cons of loans for under-21s
Pros
- Easy access to the funds you need. This is an obvious ‘pro’. Get access to the funds you want to make the purchase you need.
- Build up your credit history. Acquiring a loan allows you to establish and build your credit history. This ultimately affects your eligibility for other types of loans and access to better interest rates in the future as well.
Cons
- You may only be eligible for a small loan. If you have no credit history or limited credit history, you may only be eligible for a small loan, which may not be enough for what you need.
- Risk of getting into debt. Taking on any loan comes with risk, so make sure to budget your repayments and don’t apply for a higher loan amount than you can afford to repay.
- Potentially high rates. As harsh as it may seem, to a lender, 18-year olds represent a greater risk, which they’ll normally look to offset by charging a higher rate.
Bottom line
Taking out a loan can be an easy way to borrow extra funds and, providing you’re sensible, it can also help to build up your credit score. However, interest rates can be high and if you’re unable to keep up with your repayments, you could do your credit score more harm than good. Always consider your options carefully before applying.
Frequently asked questions
Will you be approved?
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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Loans for apprentices
Our guide explores all of the best options for getting a loan when you’re an apprentice.
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Compare personal loans for new employees
If you have just started a new job, you could still be accepted for a personal loan. See how lenders compare and give yourself the best possible chance of being accepted.
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Compare personal loans for part-time employees
Just because you don’t work a 40-hour week doesn’t mean you can’t get a personal loan. Find out what you need to apply online and what your options are.
Ask an Expert
Is there any possible way u can help me find a place who will accept me for a loan as I’m struggling a lot because I have just turned 18 n haven’t really got a credit score at all
Hi Byron,
Thank you for leaving a question.
I understand that it may be difficult taking out a loan with low credit score. There are options available and you may check it on this page. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!
Cheers,
Reggie