£10,000 loan guide: How to borrow 10,000 pounds today

Read the Freedom Finance £10,000 Loan Guide: How to borrow 10,000 pounds today

Are you looking to borrow 10000 pounds?

It might be that you’re looking to consolidate debts, make improvements to your home, or finance your next car.

Whatever the reason for borrowing, taking out a loan of £10,000 is a big financial commitment with lots to consider, but it doesn’t need to be scary.

With our guide, we’ll take you through all the key things you need to know, including the options available to you and the factors that will help you decide which is best for you.

Where can I get a £10,000 loan?

For larger amounts like £10,000, there are a number of borrowing options available to you. The most common loan options include:

Personal loans

These are unsecured loans, meaning that the debt is not tied to any assets you own and the limit of how much you can borrow is typically lower as a result.

  • Borrow amounts from £500 to £35,000
  • Terms of 1-7 years
  • Available to both non-homeowners and homeowners

Homeowner loans

Homeowner loans are secured loans that tie your property to the debt. This allows you to borrow larger sums, providing the flexibility to spread the repayment over a longer period to make them more manageable.

  • Borrow amounts from £5,000 to £500,000+
  • Terms of 1-30 years
  • Available to homeowners only
  • Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Execution-only homeowner loans

Execution-only secured loans are similar to homeowner loans, only you are not required to attend a call with an adviser. This allows you to be in control of the decision from start to finish.

  • Borrow amounts from £10,000 to £50,000
  • Terms of 4-10 years
  • Available to homeowners only
  • Cannot be used for debt consolidation
  • Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Unsecured vs Secured Loans: Which is best for borrowing £10,000?

As the options listed above show, when borrowing £10,000 you might be able to choose between either an unsecured or a secured loan, depending on your circumstances.

But what does this actually mean?

Unsecured loan

An unsecured loan is a borrowing agreement that is not tied to any other assets you may own, like your home.

This means that the terms of the loan and your eligibility will depend on your circumstances and credit score, which will ultimately impact the offer you receive. If you have a lower credit score, for example, you might be offered a higher interest rate or a lower borrowing limit from the lender.

Unsecured personal loans are a good option to consider if you have a healthy credit score, as well as the most suitable option if you are renting and do not own property.

Secured loan

Secured loans are loans that are tied to assets you own, typically your property.

This means that lenders will be more comfortable offering higher amounts or longer repayment terms, even if you have a low credit score. The key difference is that your property is now directly secured against the borrowing agreement, meaning that—as a last resort—your home could be repossessed by the lender if you do not keep up the agreed repayments.

Secured loans are an appealing way to borrow £10,000 if your credit score is lower, or if you are looking to spread the repayment over a longer period to reduce your monthly repayments.

Am I eligible?

Depending on the type of loan you use to borrow £10,000, there may be different criteria.

Whether you are looking at an unsecured personal loan or a secured homeowner loan, lenders will usually look at the following information when you make your application:

  • Your credit history or credit score
  • Your income
  • Your debt to income ratio (the amount that you already pay towards debts)
  • Loan purpose (such as debt consolidation, or making home improvements)

The quickest and easiest way to check whether you are eligible, without affecting your credit score, is to use our free eligibility checker tool to review your details and browse suitable loan products from our lenders.

Can I get a £10,000 loan with a bad credit score?

Your credit report is a record of your borrowing history, used by lenders to evaluate how reliable you are as a borrower.

If your credit score is low, then it might be that your report shows that you have missed repayments with previous debts. On the other hand, it may simply be that you don’t have enough borrowing history for lenders to make an accurate judgement on your reliability. This is particularly common for renters that haven’t previously had a mortgage. In these cases, a lower credit score will mean that lenders might offer less than you hoped for, or apply a higher interest rate.

Meanwhile, a high credit score will show to lenders that you’ve borrowed reliably in the past and they will be more likely to give you a more desirable offer.

If you are currently going through a period of bad credit and need to borrow £10,000, don’t worry, you may still have options. If you are a homeowner, you might be able to get better offers by applying for secured, rather than unsecured, loans. Remember that these loans are secured against your home.

Otherwise, unsecured loans of £10,000 might still be possible with bad credit, but you may be offered a higher interest rate. Alternatively, you might want to think about a guarantor loan instead of a personal loan.

Our personal loan eligibility checker uses a soft search, meaning you can browse suitable loan options based on your credit history, without impacting your credit score.

Can I apply to borrow £10,000 online?

As a broker, we make it easy to browse options from multiple lenders and instantly apply to borrow money online.

To get started, simply head over to our eligibility checker and enter some basic information. We will then run a soft search on your credit report, which is used to suggest lenders and loan options for your needs and circumstances. You can then browse these and apply to whichever feels most suitable.

Once you’ve made your application, the lender will run a hard credit check on your credit report and assess your application against their eligibility criteria. This hard credit check will appear on your credit report, so make sure you take time to assess your options and choose a lender that best suits your circumstances.

If approved, the lender will then follow-up your application with an agreement for the loan that you will need to review and confirm that you are happy with the terms.

This offer will usually include information like:

  • The loan amount
  • The repayment term
  • Any additional fees or charges that you will need to be aware of
  • The total amount expected  to be paid at the end of the repayment term

Once you are happy with the terms, you can then accept the agreement and you will be sent the requested funds.

Will I receive my loan on the same day?

If you’re taking out an unsecured loan, bank transfers will generally be quick to process once the agreement is accepted. This is due to the approval from the lender having already been decided at the time of your application.

This means that unsecured loans can often arrive in your account on the same day that you accept the offer.

Secured loans take a little longer to process and will depend on how quickly you can send over the required documents. It is typical for secured loans to take around 10 days to be processed and for funds to be transferred.

Can I afford to borrow £10,000?

Once you receive your offer, you will be presented with a repayment plan and an illustration of the amount you will be required to repay each month.

It’s important to consider whether you can comfortably repay this amount every month for the full repayment term.

You may prefer to consider a longer loan term to make your monthly repayments more manageable. This will increase the amount you pay back in interest overall, but could help ensure that you can easily make them each month.

What can I use my £10,000 loan for?

When applying for a loan, you need to know  what you’re borrowing for, like debt consolidation, home improvements and car finance.

For some of the most popular borrowing reasons, we’ve compiled specific considerations that you might want to keep in-mind:

How do I repay the money I’ve borrowed?

Once you have accepted the £10,000 loan agreement and the funds have been received, you will be required to make the agreed monthly repayments.

You may choose to set-up an automated bank transfer or standing order shortly after your payday, to ensure that you make the repayments on-time. This can be a simple way to avoid missing a repayment by accident

Once you have repaid the amount borrowed in full, along with any interest and additional fees, the lender should contact you to confirm that your account has been closed.

Check your eligibility and start comparing £10,000 loans

Are you ready to borrow £10,000? Head over to our eligibility checker to see how much you’re able to borrow and find the right loan for your needs.

Learn how much you can borrow

Do you have a different amount in mind than the one above? Check out our Loan Amount Guides series below.

Loans up to £1,000£1,000-£9,999 Loans£10,000 Loans+
£100 Loans£1,000 Loans£10,000 Loans
£200 Loans£1,500 Loans£20,000 Loans
£300 Loans£2,000 Loans£50,000 Loans
£400 Loans£3,000 Loans£100,000 Loans
£500 Loans£5,000 Loans
£600 Loans

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