12 month loans for good & bad credit

Learn more about 12-month loans in this guide from Sunny

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If you need to borrow money for an emergency expense, spreading the cost over 12 months could be beneficial for your budget and general financial situation. If you’re considering a payday loan then it’s worth noting that you won’t be able to pay back your loan over the course of one year. Instead, you are limited to a shorter time frame, such as 35 days to three months.

In this case, a short-term loan is likely the best option – after you’ve exhausted all other possibilities. In this guide, we’ve taken a look at 12-month loans and what to consider before you go ahead and apply.

Representative 89% APR

Representative Example: Borrowing: £1000 for 18 months, Total Repayable: £1853.43, Total Interest: £853.43, Interest Rate (Variable): 89.9%. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.

Sunny Loans is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.

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

12 month loan information hub

We've answered some common questions around one year loans that may help when making your decision on who to apply with and the best option for you.

  • It’s unlikely that a traditional payday lender – those who lend and expect payment by your next pay date – our broker partner’s panel offer loans that can be paid over the course of a year. This is why, if a loan is your only option, it may be worth considering a short-term loan instead. The lenders that our partner works with at Sunny, will allow you to pay back what you borrow in 12 monthly instalments, depending on the amount borrowed. This means you can adapt your budget as necessary and free up enough cash to account for the loan payments over the course of a year.

  • A 12 month loan is suited to those who need to borrow larger amounts of money and want to spread the cost over a longer period of time. It can be used to cover expensive emergencies, from buying a new home appliance to covering the cost of travel if you need to reach loved ones last minute. You can use your loan for any reason but it’s important you only take one on if it’s absolutely necessary.

  • If a lender is offering you a loan – for whatever period of time – with no credit check we recommend you do not use them. Responsible and approved lenders are regulated by the FCA, this means credit and affordability checks are mandatory

  • Your credit score has a significant impact on your ability to obtain a loan. We understand that in an emergency situation, when you need to borrow money, that you don’t have time to improve your credit score before applying for a loan. Therefore, it’s important you choose your lender carefully. Look for a lender that offers soft search. This means they can assess your initial application, check your credit report and provide details of the amount you’re likely able to borrow – all without impacting your credit score.

  • Sunny is a loan introducer and we work with a credit broker who is authorised and regulated by The Financial Conduct Authority (FCA). They work with a market-leading panel of direct lenders. This gives you the confidence that they have searched multiple lenders to find you the best deal they can.

Eligibility for a 12 month loan

If you’re wondering if you’re eligible for a loan that is repayable over one year, then it’s a good idea to check each lender’s criteria carefully. Here, we’ve laid out eligibility requirements which are fairly typical across the market.

  • You must be 18 years old or above
  • You must be a UK resident
  • You must provide three years’ worth of evidence of your address
  • You must have a regular income
  • You must have a bank account and debit card
  • You must have an email address and mobile phone number
  • Must not be bankrupt or otherwise insolvent

Bear in mind that even if you tick all of these eligibility requirements, this doesn’t guarantee that you will be accepted for a loan.

You could have the money in your bank account today# if you are approved for a 12-month loan.

We don't charge any application or admin fees.

Lenders use soft search technology. This means you can apply without damaging your credit score*.

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If you're confident Sunny is the right choice for you, apply today and confirm that you wish to pay back your loan over 12 months. We're here to offer life support when you need it.

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Representative 89% APR