Compare loans for young people aged 18 or over

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
Lendable	18	£800 per month	Not specified	Check eligibility
Everyday Loans	18	No minimum income specified	Not specified	Check eligibility
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	Check eligibility
Royal Bank of Scotland	18	No minimum income specified	Existing customers only	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
HSBC	18	£10,000 per year	New or existing customers	Check eligibility
1plus1 Loans	18	No minimum income specified	New or existing customers	Check eligibility
Zopa	20	£12,000 per year	New or existing customers	Read our review
Lending Works	20	£850 per month	New or existing customers	Check eligibility
Koyo	21	No minimum income specified	Not specified	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
Shawbrook Bank	21	£15,000	Not specified	Read our review
Leap	21	£25,000 per annum	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
Virgin Money	18	No minimum income specified	Existing customers only	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
Fintern	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	£10,000 per year	Existing customers only	Read our review
Admiral	18	£10,000 per year	New or existing customers	Read our review
Novuna Personal Finance	21	No minimum income specified	New or existing customers	Read our review
Santander	21	No minimum income specified	New or existing customers	Check eligibility
cahoot	21	£7500 per year	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	£12,000 per year	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	Existing customers only
Progressive Money	18	No minimum income specified	Not specified	Read our review
Fluent Money	18	No minimum income specified	Not specified

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 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 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.

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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.

1. 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.
2. 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.
3. 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.
4. 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 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.
5. 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.
6. 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.
7. 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.

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

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

• What is the minimum age to get a loan?

  For most lenders, you’ll need to be 18 years old to get a loan, but some will require you to be 21 or over.

• I have never had any credit, will this mean I have a bad credit score?

  If you’ve never borrowed before, you will have no history of credit. This means your credit score will be lower, or the credit reference agency may not even be able to generate a score. Lenders will be less willing to lend to you if you have no credit history as they won’t be able to judge how you have handled credit in the past.

• Can you get loans for 17-year-olds?

  For almost all UK lenders, you need to be at least 18 years old to get a loan. You’ll only be able to apply for a student loan at 17.

• Is it true that my credit score will increase if I get a loan?

  That depends on how you manage it. If you keep up with your monthly repayments and fully repay the amount borrowed within the loan term, your credit score is likely to increase. However, if you regularly miss payments or are unable to repay the amount borrowed, your credit score could go down.

• How do I check my credit score?

  You can check your credit score directly with the credit reference agencies that produce your credit score. The biggest ones in the UK are Equifax, Experian and TransUnion (formerly Callcredit).

• I applied for a loan but was rejected, how quickly can I apply for another one?

  Loan applications involve a type of credit search known as an “application search” or “hard search” which will show on your credit report, and which can negatively affect your credit score. Re-applying for a number of loans in a short space of time can be a red flag to potential lenders so it’s best to wait three to six months before applying again.

• Can I get a home loan at 18 years old?

  If you’re 18, you will legally be allowed to apply for a mortgage. However, whether you will get accepted will depend on a range of factors, including how much of a deposit you have to put down and your affordability.

• Can I get a loan if I'm 18 years old with no credit history?

  While it’s still technically possible to get approved for a personal loan if you have no credit history, it’s very unlikely. You may have more chances with a guarantor loan or secured loan, but these types of loans are not available to everyone. You may instead want to consider applying for a credit builder credit card.