A Guide to 12 Month Personal Loans

A Guide to 12 Month Personal Loans

If you need some quick cash or money you need within a day then it is worth considering short term 12 month personal loans to tie you over. Borrowing cash for just one year is ideal for small amounts as the repayment is over a relatively short period, it means the interest rates on the loan paid back are low and can be competitive.

12 month personal loans should only be taken up with reputable loan companies and this does not mean just because they advertise on local television they must be genuine. If the loan company has a website; again this does not make them a competitive loan company you should be doing business with.

The first 12 month personal loans enquiry we found online looked genuine enough and was advertised on a neatly laid out web page with access to live chat support. But the rates on offer were less than desirable. A £1000 loan over 12 months would cost you £1867 (an APR of 277%). This means that a £1000 loan will cost you an extra £867. Now that seems to be a lot of payback and in many cases if you desperately need £1000 right now which you cannot raise at the moment then how would you be able to raise the enormously high £156 monthly payments, every month for a year?

The first place to head for if you must get a 12 month loan is your own bank. It is possible as a customer they are prepared to do you a deal, and a good one at that. They know you, and they trust you (or at least you would hope they do!) so try this avenue first. A quick check with my bank revealed that 12 month personal loans usually come out at 6.1% APR and you can borrow between £7000 and £20000 (depending on your personal credit circumstances). Believe it or not there are some good deals available on 12 month personal loans for those with bad credit too. I was easily able to find headline representative APRs starting at 7.2%.

One of the advantages of 12 month personal loans has to be the fact that lenders will think if the debt is only going to last 12 months (as opposed to five or ten years), then there is a very good chance the customer will not default on the repayments.

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Primary author at Loan Owl, keen blogger and founder of various finance websites.

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