£2,000 loan guide: How to borrow 2,000 pounds today

For smaller amounts like £2,000, you have a number of choices for borrowing.

If you have a good credit history, then an unsecured personal loan can be a great option to consider. Eligibility for unsecured loans is based largely on your credit score, so a better borrowing history will make you more appealing to lenders and result in a higher chance of approval.

Speaking of lenders, there are a lot of them out there. Each with specialised unsecured loan products for different use cases. These generally range from £500 to £35,000 in value and will have relatively short repayment terms of between 1-7 years, depending on the lender and application.

It’s up to you to pick one that fits your needs, which is where we can help. As a broker, we compare multiple lenders and provide useful insights to help you decide which works best for you.

Of course, a loan isn’t your only option. You could also consider using a credit card to pay £2,000 towards something. Credit cards come with their own benefits, like additional insurance or reward schemes.

If you’re still weighing up the options, then our guide to loans vs credit cards might help you to decide.

Your loan eligibility will vary, based on criteria set by each lender. These factors can often include:

• Your borrowing history or credit score
• Your income
• Your debt to income ratio (the amount of your income that you already pay towards debts)
• Loan purpose (such as taking a holiday, consolidating existing debts, or buying a new car)

While this sounds like a lot, you don’t need to make blind applications to find out whether you’re eligible. In fact, doing so will make permanent records on your credit score that may negatively impact your future applications.

Instead, it’s easy to check your eligibility for a loan with our free eligibility checker. Simply provide a few details about yourself and what you’re looking for, and we’ll run a soft search to identify suitable lenders, without hurting your credit score.

It’s a quick, easy, and obligation-free way to make an informed choice ahead of an application.

When you apply to a lender, they will check your credit history to determine whether you are likely to repay the loan reliably.

Your credit score is an abstract value that represents your borrowing history and whether it reflects positively or negatively on your eligibility.

A high credit score will indicate to lenders that you have a history of regular and reliable loan or credit repayment. In these cases, lenders will be happy to offer you higher amounts or more favourable rates.

On the other end of the scale, a low credit score may tell lenders that you have had some issues borrowing and repaying loans in the past. It could also simply be a sign that you haven’t really borrowed before.

If you are trying to borrow £2,000 with bad credit, a lower credit score won’t necessarily stop you from getting approved. It might, however, result in higher interest rates or a lower total amount being offered.

Applying for a £2,000 loan online is easy.

Simply head over to our eligibility checker, enter some basic information about yourself, the amount you’d like to borrow, and start your search.

We’ll suggest multiple lenders, which you can browse and compare to see which best suits your needs.

Once you’ve made a decision, it’s time to click apply and make your formal loan application. At this point, the chosen lender will run a hard check on your credit report. If they are happy with your credit history and the other eligibility criteria they may consider, they will then send you an approved unsecured loan offer.

This will typically include details of:

• 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

Take time to read this in detail and consider whether it is realistic based on how much you expect to be able to repay each month. Once you agree to the loan, you are committing to the repayment plan they have outlined, so be sure you’re absolutely happy before proceeding.

Once you are happy, you can accept the loan agreement and the funds will be transferred to your account.

It’s common for unsecured loans to be transferred into your account on the same day that you accept the agreement.

This is because unsecured loans don’t require additional paperwork and legal documentation, in the way that a secured loan might. By the time you’ve got your offer from the lender, they’ve generally got the funds approved and ready to be transferred immediately.

As with any form of borrowing, it’s important to be sure that you can reliably make the required repayments each month.

Doing so will help to boost your credit score and ensure that you don’t incur any unwanted extra charges or fees.

A good way to check whether you can afford a loan is to review your current monthly income and spending. In particular, check how much you’ve got left each month after mandatory payments like rent and utility bills have come out, and then subtract a typical grocery spend in a given month..

If the amount you have left is comfortably higher than the amount you need to repay each month, then this is often a good sign that you can afford the loan. It’s important to keep an eye on monthly spending, to ensure you don’t put yourself in a position where you can’t afford a repayment.

Equally, it can help to look into the future and imagine how you would afford repayments if you were to suddenly lose your monthly income.

Some of the most popular reasons to borrow £2,000 include car loans, debt consolidation, and holiday loans.

£2,000 car loans

A £2,000 car loan can go a long way towards a new motor. Whether you’re looking for something on the second hand market, or putting it towards a brand new car in combination with cash savings, a loan can give you the flexibility to move quickly when you find your perfect car.

It’s also worth keeping in mind that, in addition to loans, you can also think about car finance options like hire purchase, personal contract purchase, and more.

To learn more about car financing and your options, check our complete guide to car finance.

£2,000 debt consolidation loans

If you have existing debts, each with separate repayment schedules and terms, it’s easy to start to feel overwhelmed. Debt consolidation can help to make this easier, by consolidating your existing debts into a single loan, leaving you with just one repayment schedule to stay on top of.

You can learn more about debt consolidation in our guide on how to consolidate debt.

£2,000 home improvement loans

A £2,000 loan for home improvement can go a long way. Whether you’re looking to spruce up your living room, redo a bathroom, or finally get that garden decking you’ve always dreamed of, the options to improve your living space and boost the value of your home are endless.

Read our guide on how to finance home improvements for further tips on how to make it happen.

Other reasons to borrow

You can find information on other ways to use a personal loan on our dedicated pages for each loan purpose:

• Holiday loans
• Wedding loans
• Home furnishing loans
• Caravan and motorhome loans
• Medical loans

Once you’ve accepted a loan, you will have formally entered the agreement and will be required to make the monthly repayments outlined in the terms.

It can be helpful to set up a direct debit for the repayment to come out just after your payday each month. This way, it will always be covered and you won’t find yourself without enough in your account to make the repayment.

Once you have completed all of the monthly repayments and come to the end of the term, the lender will contact you to confirm that your debt has been repaid and your account has been closed.

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.

Representative example: If you borrow £7,500 over 5 years at a representative APR of 19.7% and an annual rate of 19.7% (fixed) you would pay £190.93 per month. Total charge for credit will be £3,955.76. Total amount repayable is £11,455.76. Minimum repayment period is 12 month. The % APR rate you will be offered is dependent on your personal circumstances. Aro is a leading credit broker not a lender.

As a general rule, aim to borrow as little as possible and repay it as quickly as possible. As an added benefit, frequent borrowing and repayment can help to boost your credit score.

Are you ready to borrow £2,000? Head over to our eligibility checker to see how much you’re able to borrow and find the right loan for your needs.

Not sure how much you need to borrow? Check our guide to borrowing different loan amounts.