Loans for 18 year olds from £50 to £5,000

If you’re over the age of 18, you can apply to borrow up to £5,000 using our loans for young people. Options for a lack of, or bad credit history are also available through ThisLender.

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NO OBLIGATION & NO BROKER FEES

Representative 49.9% APR

Representative example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28 Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. Rates from 45.3% APR to 1721% APR - your no-obligation quote and APR will be based on your personal circumstances. The minimum repayment period for any loan will be 90 days from the date the loan is issued. The maximum repayment period is 3 years.

We are not a lender but a licensed credit broker in the UK

When you’re young, it can be difficult to get approved for finance if you haven’t had a chance to build your credit history. Some finance providers aren’t willing to lend to people based on credit alone, which is why loans for 18 year olds provide a useful solution for young people who need to borrow money.

Because the credit check forms an important part of the application process, there really is no way to avoid it. This doesn’t mean you can’t get approved though! We work with a panel of direct lenders who offer personal loans for 18 year olds, regardless of credit history.

The lenders that we work with take a different approach when analysing applicants. Instead of looking at credit scores alone, they conduct various affordability checks to get a broader picture of your financial situation to determine risk. So, if you’re over the age of 18, you could be eligible to borrow up to £5,000 with ThisLender.

Loans for 18 year olds and young people

If this is your first time seeking finance, there’s a lot to consider before making an application. First and foremost, you should only ever apply to borrow money if it is absolutely necessary. This means exhausting all other options prior to pursuing a loan. Think about different ways you could try to obtain the money you need, such as selling your possessions, or borrowing money from friends and family.

Once you’re certain taking out a loan is your only option, you’ll need to consider how much money you require, and what the money will be used to pay for. Then you can look into applying for a loan for 18 year olds.

We’ll walk you through everything you need to know before applying, and explain how to find the best loans for young people in the UK.

First time loans for 18 year olds:

Can an 18 year old get a loan in the UK?

Yes, in the UK you can apply for a personal loan if you are over the age of 18 years old. However, getting approved for finance can be tricky when you are young, which is why loans for 18 year olds exist. These loans help young adults borrow money and, at the same time, provide an avenue to start building a credit history.

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Access from £50 to £5000

What loans are available for 18 year olds with no credit history?

If you’re an 18 year old with no credit history, or very limited evidence of responsibly borrowing money, it may be difficult to qualify for a personal loan. However, there are loans for young people available, and they provide a quick solution for getting the money you need in a hurry.

So, if you’re in a financial emergency with nowhere else to turn, it’s time to research the different types of loans available for 18 year olds. The best personal loan products for young people include:

Guarantor loans:

Guarantor loans are the most popular loan product for 18 year olds. These loans tend to have far higher approval rates, because they help to decrease the lender’s risk.

With guarantor loans, you can access the money you need so long as you provide an additional person to guarantee the loan. As the ‘guarantor’, this person co-signs your personal loan contract, agreeing to become liable in the event you defaults on repayments.

Usually, a guarantor is a parent or other family member with good credit. So with this option, you need to find someone who is willing to cover your loan payments if you can’t.

Lots of people worry about guarantor loans, but the reality is that you shouldn’t be taking out a loan if you doubt your ability to pay back the money. As long as you are confident you can afford the loan, there shouldn’t be any issues.

Unsecured loans:

There are two main types of personal finance: secured and unsecured loans. As a young person, it’s unlikely you own assets that you are willing to put forward as collateral for the loan, so unsecured loans are better suited.

With unsecured loans for young people, you could be approved to borrow money at a pre-approved interest rate. After receiving an amount of money upfront, you are then required to pay back the loan (plus interest) in weekly or monthly instalments. However, your age, affordability and credit score could impact the amount of money you can borrow. Be aware that you might not get approved for as much as you originally apply for.

Bad credit loans:

The term ‘bad credit’ implies that you’ve done something wrong to cause adverse credit. However, this is not always the case. Bad credit can also refer to a credit file with a limited history of borrowing money.

It sounds unfair, but lenders use your file as one way to evidence creditworthiness. The absence of a borrowing history leaves a question mark for the lender - is this person reliable? Can I trust them to make timely repayments?

Because of this, loans for 18 year olds with bad credit exist. These poor credit loans are issued by lenders who can provide greater flexibility in the event of a limited credit history.

I’m 18 years old, am I eligible?

Yes, you could be. However you do need to meet the following criteria:

  • You have a UK bank account with debit card
  • You are employed with evidence of regular income
  • You are NOT currently bankrupt

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Access from £50 to £5000

How can I improve my chances of being accepted?

First things first, you should use a credit reference agency to get a free copy of your credit file. These agencies will show you exactly what a lender will see when conducting a credit check, as well as providing you with tips to improve your score.

As well as this, you can provide lenders with a second way to confirm your identity by registering for the electoral roll. Although you can only be included in the UK Parliamentary register from the age of 18, you can be registered locally once you turn 16 years old.

Another easy way to maintain a good credit score is to ensure you pay all of your bills on time, no matter how small they are. If this is something you struggle with, setting up direct debits can do the job for you.

What can I use the money for?

As we mentioned earlier, you should only ever borrow money when it is absolutely necessary. Loans for 18 year olds exist for financial emergencies, and can be used to cover unexpected bills when you don’t have enough money to tie you through the month.

Last year, MoneySuperMarket conducted research on what young people tend to take out loans for. Their study found that 52% use personal loans for their cars. As well as paying for vehicle repairs and MOTs, loans for 18 year olds can be used for:

  • Urgent home repairs
  • Medical / veterinary costs
  • Funeral expenses
  • Large bills and debts

Can an 18 year old get a car loan?

Yes, you can. Car finance is a popular loan product for young people, and the minimum age to apply for this is 18 years. When you apply for a loan through ThisLender, the money you borrow can be spent on car expenses.

What are the benefits of using loans for young people?

Loans for 18 year olds provide lots of benefits for young people who need to borrow money quickly. As long as they are used responsibly, these personal loans can provide a financial lifeline that otherwise wouldn’t be available. The pros of taking out a loan include:

  • Build your credit score: Grow your credit rating by proving yourself as a responsible borrower.
  • Flexible repayments: Get a loan that suits your salary payments. With loans for young people you can choose to pay weekly or pay monthly over a period of 3 - 36 months.
  • No spending restrictions: What you choose to spend the money on is up to you.

So, how do I apply?

When you’re ready to start the application process, simply apply online. It only takes a few minutes to submit an application form, and after that, if successful, you’ll receive an instant quote from lender on our panel that we believe could help secure you a loan.

Apply for a loans for 18 years olds

Why choose ThisLender?

As we’ve mentioned, it can be pretty difficult for young people in the UK to receive personal finance. All too often, loan providers make young adults jump through hoops to get the money they need.

When you need money in an emergency, a limited credit history shouldn’t hold you back. At ThisLender we work closely with our providers to give applicants the opportunity to build their credit score carefully. As well as this, we offer:

  • Make a free application online: There’s no paperwork or documents to worry about. Simply complete our 5 minute application form on your mobile or laptop.
  • Direct lenders you can trust: We only work with direct lenders who are authorised and registered with the Financial Conduct Authority. These lenders are held to lending best practice, so you’re in safe hands!
  • Change your mind at any time: Any quotes you receive after applying through ThisLender are no obligation, which means you don’t have to go through with the lender’s offer.

Where do I go for help if I’m in financial difficulty?

If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.

Get your free loan quote today

Access from £50 to £5,000

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Representative 49.9% APR

Representative example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28 Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. Rates from 45.3% APR to 1721% APR - your no-obligation quote and APR will be based on your personal circumstances. The minimum repayment period for any loan will be 90 days from the date the loan is issued. The maximum repayment period is 3 years.

We are not a lender but a licensed credit broker in the UK

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