When you’re faced with unexpected bills or urgent expenses, a 12 month loan can provide a much-needed financial lifeline. Whether you need to pay for boiler repairs, or your car has broken down, 12 month loans can help provide you with emergency funds.
Here at Tendo, we’re a transparent broker rather than a direct lender. That means we can help you compare loan quotes from a panel of lenders based on your unique personal and financial circumstances. We want you to make fully informed decisions about your finances. This guide is designed to help you understand what 12 month loans are, how to decide if they’re right for you and how to apply for one if you want one.
What is the process of applying for a 1 year loan?
Before you apply for a 1 year loan, it’s important to decide whether it’s the right option for you. It’s a good idea to consider other sources of funds before you apply for a loan, such as personal loans from friends and family. If you decide a 12 month loan is the best option for you, you can easily apply for a loan quote from Tendo by filling in our online application form.
We’ll ask various questions about your financial circumstances to help our lenders establish whether you can afford the repayments for a 12 month loan. This will include questions about your income and regular outgoings, such as your mortgage or rent, household bills and existing loans. We’ll also need information about your personal circumstances, such as your marital status and whether you have dependents. We’ll use this information to help us match you with the best loan quotes from our panel of lenders.
How much can I borrow with 12 month loans?
Our panel of lenders offer 12 month loans ranging from £100 to £5,000. It’s important to consider how much you can comfortably repay and what you need the money for. Ideally, you should only apply for a loan to cover essential costs such as household bills and emergency expenses such as car repairs and vet bills. It can lead to a cycle of debt if you apply for a loan to pay off your preexisting loans.
Along with 12 month loans, our panel of lenders also offer other repayment periods, which range from 3 to 36 months. These short term loans give you fast access to funds, without putting you in long-term debt.
Will a poor credit history stop me from getting 12 month loans?
While many lenders require you to have a good credit score, our panel of lenders consider applicants with all credit types. They will assess your personal and financial circumstances to evaluate whether you can afford a 12 month loan, which means you could be approved for loans for bad credit.
If you repay the 12 month loan on time and in full, your credit score may improve. This will make it easier to get approved for other loans in the future, including mortgages. However, missing repayments can cause your credit score to go down.
Pros and cons of a 12 month loan
Take a look at the benefits and disadvantages of 12 month loans to help you decide whether they’re the right option for you.
Pros
- Typically quicker to access short term loans than traditional loans.
- Simple online application: apply from the comfort of your own home.
- Simple online application: apply from the comfort of your own home.
Cons
- Higher interest rates: short term loans typically have higher interest rates.
- Short repayment term: repay the loan in full within 12 months.
- Cycle of debt: applying for too many 12 month payday loans can lead to a cycle of debt that can be difficult to escape.
Requirements for 12 month loans
You must meet the lending eligibility requirements before you apply for 12 month payday loans. Our lenders require you to be:
- At least 18 years old
- A UK resident
- Employed with a minimum salary of £500 net pay per month
- Have a bank account (and your wages paid into it)
- Have a valid email address and phone number
There’s no guarantee that you’ll be approved for a 12 month loan, even if you meet the above requirements. Our lenders assess each application individually to determine whether you can afford to repay the loan.
Choosing the right loan for you
Before you apply for 12 month payday loans, you need to assess whether it’s the right choice for you. You need to think about whether you really need the funds and whether you could save up rather than borrow. It’s also a good idea to consider other sources, such as friends and family or emergency savings. If the 1 year loan is for a non-essential purchase, it might be better to save up instead of borrowing.
Once you’ve decided that a loan is the right option for you, it’s important to determine whether the monthly repayment amount will fit your budget. You need to factor in the interest rate and any additional fees. If the 1 year loan repayment will affect your ability to cover essential expenses such as your mortgage or rent and household bills, a 12 month loan may not be the best option.
What to do if you’re struggling with debt
If you feel you are or may struggle financially, we suggest you contact specialist advisors who can be of assistance. The following organisations can offer financial advice and support:
