If you’re looking to borrow £6,000, there are a lot of options available so it can be hard to know how to make the right decision. You might be looking to borrow £6,000 to put towards a new car, renovate your home or to consolidate your debt, but it doesn’t have to be complicated.
With our guide to £6k loans, we break down everything you need to know so that you can start looking for the right option for you.
Where can I get a £6,000 loan?
If you are wanting to borrow £6k, you have a couple of options. You may wish to take out an unsecured personal loan, which would allow you to quickly access the money that you need.
Personal loans usually go up to £35,000, and repayment terms vary from 1 to 7 years. Lenders will want to make sure you are able to afford to make the repayments if you take out a £6,000 loan, so they will look at your credit history and current situation to see if you are eligible. Benefits of a personal loan may include:
- No lender security needed – so you don’t need to attach your home to the loan
- Interest rates may reduce at higher loan amounts
- Monthly payments are fixed
- Potential overpayment or early repayment options
You may also wish to consider a secured loan, sometimes known as a homeowner loan. This is where the money that you have borrowed is secured against something, usually your property, so that the lender can reclaim the money they are owed if you cannot keep up the repayments.
Can I borrow £6,000 with a bad credit score?
A low credit score may be caused by difficulty in keeping up with repayments in the past, or it may simply be due to you not having had much opportunity to build your score. Lenders will use your credit history to help see if you are eligible for a loan, but it is not the only thing they consider. Some lenders may still be willing to lend to you depending on your score, but a low score may mean that the APR you are offered is higher, or that your monthly payments are increased.
If you are having difficulty obtaining a personal loan for the £6,000 you need to borrow, you may find that a guarantor loan is an option. These are designed to offer security to the lender by having someone vouch for you. Keep in mind that both you and your guarantor will need to be comfortable with the decision as they will be responsible for the loan if you cannot make the repayments.
Can I apply online for a £6,000 loan?
Yes. The vast majority of lenders take and process applications online.
At Aro, we can help you find the right lender for you with our eligibility checker. It’s a soft credit check that will show you how likely you are to be approved with lenders, and shows the options available to you. Even better, it’s all done without a harmful credit check against your record.
Once you have settled on a particular lender, you can choose to move forward with a full application. If you meet their criteria and pass their full credit heck, an offer will be made to you including your loan amount, repayment plan and any details on interest rates and fees. You can then choose to accept the offer if you wish.
When will I receive my loan?
This will vary from one lender to the next. Some lenders are willing to make same-day payout, some may take a few working days to process your loan. The timeline will be explained to you in any offer that you receive.
Can I afford to borrow £6,000?
With any form of borrowing, you need to think carefully about whether you will be able to afford the repayments asked of you.
You should check the repayment plan given to you as part of your offer to make sure you will be able to afford it.
Assess what you already know are essentials in your monthly budget. Bills, utilities, mortgage or rent, and then add on any additional payments such as subscriptions and your food bill. Once you have worked out everything you would need to pay for, you will be able to see if you can comfortably add on the repayment for your loan into what’s left.
You should always make sure you aren’t spending every penny – try to save some funds for emergencies and to save a little each month. Additionally, you should have a plan for what to do if you find yourself suddenly unable to afford the repayments through your income, and how you will keep them up.
What can I use a £6,000 loan for?
Most commonly, loans are used for the following reasons:
- Debt consolidation
- Weddings / celebrations
- Purchasing a new car
- Home renovations
There are some restrictions on what you can use a personal loan for, so it is important to be honest about what your plans are when applying for one. It may affect the rates or options made available to you.
£6,000 car loans
Some people opt to use a loan to help finance a car or other vehicle purchase. This may be a great option of you know you want to own your car at the end of the finance term, alternatively car finance can give you more options if this is less important to you. It’s worth checking all options available to you before making a decision.
£6,000 home improvements loans
If you’re looking to make improvements or have the perfect plan for finalising the room of your dreams, a £6,000 loan for home improvements could be the perfect answer.
£6,000 debt consolidation loans
A debt consolidation loan is where you put together and pay off all existing debt with one single loan, leaving you with just one monthly repayment to manage. You do need to remember though that by consolidating your debt, you could potentially extend the term of your debt and increase the total amount you repay.
How can I repay my loan?
If possible, the best option will likely be setting up a direct debit to the lender, and they will be happy to help you through this process. This way, you won’t accidentally forget to make the repayment, and it will make it much easier to budget for as it is predictable and consistent.
Once your loan is fully repaid including interest and fees, the balance will be cleared and the account will be closed.
How long will it take to repay a £6,000 loan?
The amount of time it takes to repay a loan, as well as the total amount that you repay, will vary depending on the terms you have agreed to.
Here is a general guide with a representative APR to give you an idea.
|Amount borrowed||Repayment term||APR (example rate)||Monthly repayments||Total repayment|
|£6,000||12 months (1 year)||25.4%||£564.02||£6,768.24|
|£6,000||24 months (2 years)||25.4%||£313.79||£7,530.94|
|£6,000||36 months (3 years)||25.4%||£231.79||£8,344.27|
|£6,000||60 months (5 years)||25.4%||£168.62||£10,117.29|
Representative example from Aro’s whole lender panel: 25.4% APR Representative based on a loan of £12,500 repayable over 48 months at an interest rate of 25.4% pa (fixed). Monthly repayment of £399.61. Total amount repayable is £19,181.16.
If you’re ready to move forward with your plans to borrow £6,000, then you can head over to our eligibility checker to see what your options are. Fill in your details and we can run a soft credit check to show you how much you could be able to borrow and find the right loan for you.