12 Month Loans

Get between £50 - £5,000 paid out by

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  • 100% Online Process

  • Borrow up to £5,000

  • UK Based Lenders

  • Bad Credit Accepted

  • 2 Minute Application

  • Same Day Transfer

  • Representative Example: Rates from 35.9% APR to max 1304% APR. Minimum Loan Length is 3 months. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 3 months. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Interest charged is £161.63, annual interest rate of 292% (fixed). Representative 1192% APR (variable). *HappyPenguin will not perform a credit check but lenders will determine your loan eligibility by performing a soft search. If you accept the loan offer presented to you, a hard credit search will be performed.

    Important Considerations Before Taking Out a 12 Month Loan

    A 12-month loan is generally a good option if you need money urgently and are prepared to deal with repaying the loan as quickly as possible. At the same time, it should not be treated lightly, as it has certain strong implications on your finances that you’ll want to consider in detail before putting your signature on the dotted line. Generally speaking, you’ll want to be sure that you’re aware of all available alternatives, and that you’re familiar enough with your finances to guarantee the timely repayment of the loan.

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    Do You Need a Longer Duration?

    One of the most important things to think about is whether 12 months is the ideal duration for you in the first place. There will usually be shorter-term options available if you look around, and some of them might work better for you if you only need a small sum of money for a quick emergency payment. This is not a universal rule, but it’s something worth considering if you want to maximise the benefits of this loan on your own finances.

    Of course, short-term loans also come with higher interest rates and other factors that might make them less favourable for your situation. But the point is that you need to sit down and carefully evaluate how a short-term loan might impact your finances. You might realise that it’s not as bad as it seems initially.

    Check the Rates Carefully

    Just because it’s a longer-term loan doesn’t automatically mean that you’re going to get better interest rates than shorter ones. You should take a careful look at what you’re getting, and talk to the lender about any points concerning the interest rates that you might not understand. Certain loans come with special conditions that are not immediately obvious.

    For example, the loan might be aimed at people in specific financial situations who could benefit better from some of its stronger points, but it compensates for that by being offered at higher interest rates. Those loans will not be ideal for everyone, and you’ll want to know that you’re getting the best rates available for instant payday loans in your current circumstances.

    Sometimes there will be more factors to consider than the interest rate alone, and you’ll generally want to be very careful in making these comparisons. Talk to people with more experience in financial matters if you want to be sure that you’re making the right choice, and put off the final decision if you’re able to in your current situation.

    Compare Deals Before Making Your Final Decision

    Which brings us to our next important point. Don’t just jump at the first attractive-looking deal that you come across. Try to collect at least a few offers that seem adequate, lay them out on the table, and make your pick from one of them, taking all factors into account. Once you start comparing deals side by side, you’re going to notice that certain factors stand out much more than others.

    In some cases, loan packages might be designed to give you the impression that they’re offered at favourable conditions, when in reality you’ll end up paying more over the duration of the loan compared to a competing product. And as we mentioned above, if there’s anything you don’t understand about the conditions of your loan, bring it up with the lender. There’s no shame in failing to understand some of the points in the contract, but there’s definitely a lot to be ashamed of if you proceed with signing it without clarifying these things first.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    Credit Score Implications

    Some loans will hit your credit score harder than others, and you should plan ahead if you want to avoid any nasty surprises in that department later on. This is generally only an important concern if there is a risk of non-payment, but considering that you can’t really protect yourself against that 100%, it’s a good idea to know what you’re dealing with in any case.

    Check to see exactly what kind of an impact this particular loan will have on your credit score in the long run. Sometimes the mere fact of checking your credit report can trigger a negative hit, so keep that into consideration before applying for loans left and right randomly. You should have a more directed approach if you want to avoid incurring a large penalty to your credit score, which will in turn degrade your future prospects significantly.

    Appropriate Uses of 12-month Loans

    You should also think about why you need the money in the first place. Sometimes, there might be more appropriate products on the credit market designed specifically for people in your circumstances, in which case a 12-month loan would not be the ideal choice. If you want to make a major purchase that you had not planned for in advance, this can often be covered with a 12-month loan rather reasonably.

    Urgent expenses are another point to consider. Sometimes you’ll have to pay for something on short notice and you won’t be able to postpone it. While there are ways to get out of those situations that don’t involve taking out a loan, it’s often the best option in those cases. And a 12-month loan is typically the most appropriate product when it comes to balancing the repayment duration and other factors nicely.

    Collateral or Not?

    Not every loan on the market will require you to put up collateral when taking it out. Don’t treat unsecured loans as a better deal just because you’re not risking any property though. In fact, they can often be much worse on your finances in the long run, especially if you fail to pay them off on time. It’s not just about the worse interest rates – although that’s not a small factor itself – but you’ll often have to deal with stronger implications for your credit score and other similar factors.

    Viable Alternatives

    Do you have another way to put together the money and get through the difficult situation? You may not necessarily have to take out a weekend payday loan if you know your options. Even borrowing money from a friend or relative can be a viable option if you know you can pay it back, and it will allow you to get through the situation without having to think about paying off a loan and the implications of failing to make any of your instalments.

    Of course, not everyone has access to these options, and in some cases getting a loan will be the only thing you can really do. It’s important to know that you’re making this decision after taking the time to study the alternatives though, rather than jumping at it impulsively.

    Protecting Yourself Against Changing Circumstances

    Even if you’re confident in your ability to pay off the loan now, you should think about the future as well. You can never be too sure that your circumstances will remain unchanged later on, and this is something you have to account for when planning the repayment of your loan. In other words, be ready to face the possibility that you might not be able to pay back your loan on time tomorrow.

    There are different ways to make sure that this doesn’t hit you as hard as it can, but it generally boils down to preparation, and understanding your options well enough. Don’t be afraid to tighten the belt for a few months if it means getting through a situation like that more quickly and without any long-term effects!

    Repaying Earlier

    Wanting to repay your 12-month loan earlier is not a bad thing in general. If your circumstances allow for it, it’s definitely a great idea to consider freeing up your finances and focusing on other aspects of your life more effectively. However, keep in mind that not every lender will be happy to hear that. Surprisingly, early repayment can actually have a negative effect on the business of a typical lender, which is why it’s frowned upon and comes with some extra implications that you’ll need to consider.

    Most notably, you might have to pay an early repayment fee or something similar. This is not a universal rule, and not all loans work that way. Sometimes you might be able to pay off the loan early without any consequences. The important thing is that you’re aware of what you’re dealing with in the first place though. Creditors should be open about this factor if you bring it up to them – at least good ones should – so don’t forget to have this discussion before finalising the deal.

    A 12-month loan can pull you out of many financial pits if you use it wisely, but it’s also something that can bring about its own negative consequences if you’re not careful enough. Plan ahead, know what your situation looks like (realistically!), and be ready to deal with a more challenging situation if your circumstances change later on. Do this right though, and it can be a great way to address a large number of issues in your life.

    Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk. Happy Penguin is a broker, not a lender, and does not make credit decisions.