12 Month Loans

12 Month Payday Loans

Being able to spread your loan repayments over 12 months gives you a great deal of flexibility. Keeping your repayments low can allow you to tailor the loan to fit your budget.

12 Month Loans: Spread the Cost of Borrowing Over a Full Year

When an unexpected expense lands in your lap, finding the right borrowing solution can feel overwhelming. A 12 month loan gives you the breathing room to repay what you borrow in manageable monthly instalments, rather than scrambling to find a lump sum within weeks.

At PaydayUK, we connect you with FCA-regulated lenders who offer 12 month loans from £50 to £5,000. Our service is completely free to use, and checking your eligibility won’t affect your credit score.

Whether you need to cover car repairs, replace a broken appliance, or handle an urgent bill, a 12 month repayment term could make the difference between affordable monthly payments and financial strain. PaydayUK never charges any fees to customers.

We process over 7,500 loan applications every single day, connecting people across the UK with lenders suited to their circumstances. Since 2020, we’ve helped over 1 million customers find the finance they need.

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Soft credit check only. No impact on your credit score. See your options in minutes.

How 1 Year Loans Work at PaydayUK

A 12 month loan is a form of instalment loan where you borrow a fixed amount and repay it in equal monthly payments over one year. Each payment covers both the interest and a portion of the original amount borrowed.

When you apply through PaydayUK, our technology searches an industry-leading panel of FCA-regulated lenders to find options matched to your circumstances. This happens in seconds, not hours.

A soft credit check won’t affect your credit score. This initial search is visible only to you, so you can explore your options without leaving a mark on your credit file. Only if you choose to proceed with a lender will they perform a full credit check.

Here is exactly what to expect when you apply:

Step 1: Complete the online form.
Enter your personal details, how much you want to borrow, and select 12 months as your repayment term. The form takes around 60 seconds.

Step 2: Instant soft search.
We run a soft credit check to assess your eligibility. This takes seconds and will not affect your credit score. Other lenders cannot see it.

Step 3: View your options.
If lenders from our panel can help, you will see what is available. Each offer shows the interest rate, monthly payments, and total cost.

Step 4: Choose your lender.
Found an offer you like? Click through to complete the lender’s application. They will perform a full credit check at this stage.

Step 5: Receive your funds.
If approved, you could have money in your account the same day. Many lenders transfer funds within hours.

You’re under no obligation to accept any offer. If the rates or terms don’t suit you, simply walk away at no cost.

Why Choose a 12 Month Repayment Term

Choosing the right repayment term is just as important as choosing the right loan amount. A 12 month term sits in a sweet spot for many borrowers, offering a balance between affordable monthly payments and total interest paid.

With shorter terms like 3 month loans or 6 month loans, your monthly payments will be higher because you’re repaying the debt faster. This means less interest overall, but tighter monthly budgets.

A 12 month loan spreads your repayments across a full year, making each monthly payment more manageable. This can be particularly helpful if you’re on a fixed income or need to balance the loan alongside other financial commitments.

You could receive funds the same day if approved. Many of our partner lenders offer rapid transfers once your application is accepted, helping you address urgent expenses without unnecessary delays.

12 Month Loans for Bad Credit

If you’ve been turned down by banks or other lenders due to your credit history, you might assume a 12 month loan is out of reach. That’s not necessarily the case.

Our panel includes specialist lenders who consider applications from people with less than perfect credit. These lenders look beyond your credit score to assess whether you can afford the repayments based on your current income and outgoings.

A 12 month loan for bad credit may come with a higher interest rate than loans offered to those with excellent credit histories. However, for many people, having access to credit when they need it most outweighs the additional cost.

Making your repayments on time each month can actually help rebuild your credit score over time. It demonstrates to future lenders that you can manage credit responsibly.

If you’re concerned about your credit history, checking your eligibility through PaydayUK carries no risk. Our soft search won’t appear on your credit file, so other lenders won’t see that you’ve enquired.

Eligibility Requirements for 1 Year Loans

Before applying for a 12 month loan through PaydayUK, you’ll need to meet some basic eligibility criteria. These requirements help ensure that borrowing is appropriate for your circumstances.

To apply, you must:

● Be at least 18 years old
● Be a UK resident
● Have a valid UK bank account
● Have a regular source of income
● Have a UK mobile phone number and email address

Your income can come from employment, self-employment, or benefits. What matters to lenders is that you have money coming in regularly and can demonstrate affordability.

All lenders in our panel are FCA-authorised and regulated. This means they must conduct affordability assessments before approving any loan. They won’t lend to you if they don’t believe you can comfortably make the repayments.

You should not apply if you’re currently in bankruptcy, an Individual Voluntary Arrangement (IVA), or other insolvency proceedings.

Understanding the Costs of 12 Month Loans

Being clear about costs is essential before taking out any loan. At PaydayUK, we believe in complete transparency, so you’ll always know exactly what you’ll repay before committing to anything.

Our representative APR is 91%, though the rate you’re offered will depend on the lender and your personal circumstances. APR can range from 9.3% to 1,721% across our panel.

Here’s a representative example:

● Borrow £500 over 6 months
● Monthly repayment: £106.79
● Total amount repayable: £640.77
● Total interest: £140.77
● Interest rate: 91% per annum (fixed)
● Representative APR: 91%

All lenders in our panel operate under FCA price caps. Interest cannot exceed 0.8% per day, and you’ll never pay back more than double what you originally borrowed. This total cost cap protects you from spiralling debt.

If you miss a payment, the maximum default fee a lender can charge is £15. However, missed payments will be reported to credit reference agencies and could harm your credit score for up to six years.

PaydayUK is a credit broker, not a lender. We never charge any fees for our service. The lenders in our panel pay us a commission when a loan is completed, so using PaydayUK costs you nothing.

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Over 1 million customers helped since 2020. FCA-regulated lenders only.

Why Choose PaydayUK for Your 12 Month Loan

With many lenders and brokers offering 12 month loans, you might wonder what makes PaydayUK different. Here’s why thousands of people choose us every day.

Access to multiple lenders through one application. Instead of applying to lenders individually and risking multiple hard searches on your credit file, one PaydayUK application searches our entire panel. This increases your chances of finding a suitable loan while protecting your credit score.

Smart matching technology. Our technology matches you with lenders most likely to accept your application based on your circumstances. This saves you time and reduces the frustration of repeated rejections.

Trusted by over 1 million customers. We’re rated 4.7 out of 5 stars on Trustpilot from over 6,281 reviews. Customers regularly praise our fast application process, quick decisions, and helpful service during stressful financial situations.

FCA regulated. PaydayUK is an Appointed Representative of Flux Funding Limited (FRN 806333), authorised and regulated by the Financial Conduct Authority. Our FCA reference number is 921539.

Available 24/7. We’re available 24 hours a day, 7 days a week, 365 days a year. Whether you need a loan on a Sunday evening or a bank holiday, you can apply online whenever it suits you.

What Can You Use a 12 Month Loan For

People apply for 12 month loans for all sorts of reasons. The flexibility of the repayment term makes it suitable for both unexpected emergencies and planned expenses.

Common uses include:

● Car repairs or MOT failures that would leave you unable to get to work
● Boiler breakdowns or other urgent home repairs
● Unexpected vet bills for a sick or injured pet
● Covering a gap between paycheques when bills fall at the wrong time
● Travel costs for a family emergency
● Replacing essential household appliances

Whatever your reason for borrowing, the most important thing is to be confident you can afford the repayments. A 12 month loan is a financial commitment that you’ll be managing for a full year.

If you’re unsure whether borrowing is the right choice, consider whether the expense is truly urgent or whether you could save up over time instead. Free debt advice services like MoneyHelper can help you think through your options.

Comparing 12 Month Loans to Other Options

A 12 month loan isn’t the only way to borrow money. Understanding your alternatives can help you make an informed decision about what’s right for your situation.

If you need a smaller amount for a shorter period, payday loans might be an option. These are typically repaid within a few weeks to a couple of months and suit very short-term cash flow problems.

For larger amounts or longer terms, you might consider a personal loan from a bank or building society. These often have lower interest rates but may require a better credit history and take longer to arrange.

If you have poor credit and are struggling to find any form of lending, bad credit loans from specialist lenders might be worth exploring. Our panel includes lenders who specifically cater to people with imperfect credit histories.

Credit unions are another alternative worth considering. These not-for-profit organisations offer affordable loans to their members, often at rates significantly lower than commercial lenders.

Alternatives to Borrowing

Before taking out a 1 year loan, it’s worth considering whether borrowing is truly necessary. There may be other ways to address your financial situation that don’t involve taking on debt.

Could you borrow from family or friends? While this can feel uncomfortable, it avoids interest charges entirely. Just make sure to agree clear repayment terms to protect your relationships.

If you’re struggling with existing debts, contacting your creditors directly may help. Many companies will agree to payment plans or temporary reductions if you explain your situation honestly.

Free debt advice is available from several organisations:

● MoneyHelper offers free, impartial money guidance
● StepChange provides free debt advice and solutions
● Citizens Advice can help with money and debt problems
● National Debtline offers free debt advice over the phone

If you do decide that a loan is the right option, only borrow what you need and ensure you can comfortably afford the repayments alongside your other essential expenses.

What Happens If You Can’t Make a Repayment

Life doesn’t always go to plan. If you find yourself struggling to make a repayment on your 12 month loan, the most important thing is to contact your lender as soon as possible.

Ignoring the problem will only make things worse. Missed payments will be reported to credit reference agencies and could significantly damage your credit score, making it harder to borrow in the future.

Lenders are required by the FCA to treat customers fairly, especially those experiencing financial difficulties. They may be able to offer options such as a payment holiday, reduced payments, or an extended repayment term.

If you’re struggling with multiple debts, seeking advice from a free debt charity can help you understand your options and create a plan to get back on track.

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4.7 out of 5 stars on Trustpilot. 7,500+ applications processed daily.

We are a credit broker, not a lender. We introduce customers to FCA-authorised lenders and do not make lending decisions. We never charge customers any fees. Loans from £50 to £5,000 over 3 to 36 months. Representative 91% APR.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.