£2000 Loan – Borrow 2000 pounds

Are you looking for a 2000 loan but you're worried that your credit rating might mean that your application may not be approved?

2000 loans are available for borrowers with less than perfect credit histories (subject to status) through Little Loans. Find out more with our handy guide below.

I need 2000 today - what are my options?

If you need money but you can't wait for days to get the money, you might consider one of the following six options -

• Personal loan from your bank or from another provider - can you apply online or at your branch?
• Guarantor loan - you will need to find someone willing to meet the repayments on your loan if you are not able to. Guarantor loans can take more than a day to organise however
• Credit card drawdown - many credit cards allow you to withdraw money via a cashpoint
• Bank overdraft - are you more than 2000 away from your limit?
• Friends and family - make sure you agree with a friend or family member in advance how much you'll be paying back so that it doesn't create any friction in your relationship with the other person
• Pawnbroker- pawnbrokers lend money to customers at around 60-70% of the items you put up for security. You'll therefore need around £3,000 worth of goods to take to the pawnbroker to get a 2000 loan.

What is the cheapest way to borrow money?

Borrowing money from friends and family will probably be the cheapest option if it's available to you because you're less likely to be charged interest.

With a personal, guarantor, and pawnbroker loan, you will be charged interest.

You can compare each option side by side to check which is the cheapest deal for you. Be sure to compare:

• what the monthly repayments are, and
• how much interest overall, you'll pay when borrowing the money

Credit card drawdowns and overdrafts are called "revolving" loans. With revolving finance, there are two important figures to take into account:

• the maximum amount of money you can spend (your "limit") and
• the amount of money you've actually your "balance").

You're charged interest on the balance.

If you can pay off the balance quickly, the amount of interest you'll pay is likely to be very small. However, if you only make the minimum monthly repayment, then it may cost you a lot more money.

How much? If you have a balance on your credit card of £2,000 at an interest rate of 19.9% with a minimum repayment of 3% of the balance or £5 (whichever is greater), it will take you 17 years and 5 months to pay back in full and cost you £1,903 in interest.

Please always make sure you thoroughly compare all the options open to you before committing to a certain method of borrowing.

Applying for 2000 loans - what you need to know

How can I tell if a finance company is legally allowed to lend money?

You should only request a loan from finance companies which are authorised and regulated by the Financial Conduct Authority (FCA).

Being authorised and regulated by the FCA is important. It means that a finance company is legally permitted to arrange personal loans - that's peace of mind for you.

How does a lender work out whether I can afford a loan?

A lender wants to make sure that you can afford each and every repayment in full and on time.

How do they do this? Finance companies come to their decision based upon how much money is left in your bank account once all of your regular expenses have been paid.

Your regular expenses are the bills you must pay every month - like your mortgage/rent, your council tax, your utility bills, and so on.

To work out how much cash you have spare at the end of every month, they deduct all of your expenses from the money you earn every month. What's left is something called your "disposable income".

They then compare your disposable income with the likely amount they'd take out of your bank account when they collect their fixed monthly repayments.

A lender would not want to approve you for one of their financial products or services if, after the repayments, you were left with little or no disposable income.

They want to see some "headroom" between what you have left after all your expenses are paid and what they collect from you each month.

Each lender has their own idea of the type of headroom they feel comfortable with when assessing a potential customer for one of their loans.

How important is my credit score - really?

Your credit score is a very important factor for any lender considering an application for finance. All lenders authorised and regulated by the Financial Conduct Authority must run a hard credit search on you when you make a full application to them.

However, for bad credit lenders, your credit score is not the only factor to affect their decision. Each lender has their own "borrower profile" - the characteristics of the ideal customer they like to work with.

What's in a borrower profile and why is that important?

If the personal and financial circumstances of someone applying for finance is close to that of their ideal customer, their application is more likely to be approved.

Factors that make up a borrower profile include:

• how much someone earns and spends in a month (their disposable income)
• how stable is their income
• their current credit score
• how much of their current debt they're actually using
• how long they've lived at their current location (and how many times they've moved in recent years)
• the amount of money they want to borrow

What personal details does a lender need to know?

Your lender will want to know about:

• your income (employment status, employer, time in current job, take home pay after tax, and more)
• your expenditure (mortgage/rent, utilities, existing debt repayments, and more)
• where you live (please make sure that you're registered on your council's voters' roll)
• your contact details (mobile number, email address)
• your bank details (current account number, sort code, debit card number)

Can I get a loan with very poor credit?

When someone is considering borrowing money, often they'll get very concerned about their credit history.

The reasons borrowers get so worried is that they think that their credit history is going to rule them out of the market altogether and that no lender would ever say "yes" to their application.

As you can see from what we've discussed already, borrower eligibility varies greatly between different finance providers.

Factors that make up a borrower profile include:

• how much someone earns and spends in a month (their disposable income)
• how stable is their income
• their current credit score
• how much of their current debt they're actually using
• how long they've lived at their current location (and how many times they've moved in recent years)
• the amount of money they want to borrow

What personal details does a lender need to know?

Your lender will want to know about:

• your income (employment status, employer, time in current job, take home pay after tax, and more)
• your expenditure (mortgage/rent, utilities, existing debt repayments, and more)
• where you live (please make sure that you're registered on your council's voters' roll)
• your contact details (mobile number, email address)
• your bank details (current account number, sort code, debit card number)

What personal details does a lender need to know?

Your lender will want to know about:

• your income (employment status, employer, time in current job, take home pay after tax, and more)
• your expenditure (mortgage/rent, utilities, existing debt repayments, and more)
• where you live (please make sure that you're registered on your council's voters' roll)
• your contact details (mobile number, email address)
• your bank details (current account number, sort code, debit card number)

Can I get a loan with very poor credit?

When someone is considering borrowing money, often they'll get very concerned about their credit history.

The reasons borrowers get so worried is that they think that their credit history is going to rule them out of the market altogether and that no lender would ever say "yes" to their application.

As you can see from what we've discussed already, borrower eligibility varies greatly between different finance providers.

Can I get a loan for 2000 with bad credit?

Whether you're offered finance or not is subject to status and dependent on your current personal and financial circumstances.

If you fit a lender's "borrower profile", you may be approved but please make sure that you can afford to meet the monthly repayments on any quote you receive before you proceed.

How do I repay my loan?

Most lenders will require you to pay back your loan in monthly instalments collected direct from your bank account.

Some lenders also provide a weekly repayment option for their customers.

Should I use a loans calculator?

A loan calculator, sometimes called a "loan calc", is an online tool that you can use to get an estimate of how much your monthly loan repayments will be.

While using loan calculators can give you a good idea on the cost of a typical quote from a lender, please remember that, until you make a complete application, you won't know exactly how much your monthly repayments are going to be.

How long do I have to pay the loan back?

The period of time that you pay a loan back over is sometimes called the "term" of the loan.

With Little Loans, you can choose the term of your loan. You can choose a term of between 3 and 60 months. So, if you wanted to pay it back over 2 years, you'd select the "24 months" option.

How do I get the monthly repayments lower?

To save you money on your monthly repayments, you can extend the term of your loan - in other words, pay it back over a longer period of time.

However, the longer you take to pay your loan back, the more interest you're likely to pay to your lender over the term.

Can I apply online for 2000 loans?

Yes. Most lenders and brokers, including Little Loans, accept online applications from borrowers. We explain how it works just below.

Where can I go to borrow money fast?

How quickly will your personal loan be approved with Little Loans? Quick.

Once you've made a full application at a lender's site, you should receive your answer within a few seconds. If you accept the quote and you want to go ahead, your loan could be paid into your current account within minutes.

How does the Little Loans application process work?

To find competitive and affordable deals on bad credit loans for our customers, we work with a panel of established lenders authorised and regulated by the Financial Conduct Authority.

Let us know how much you want to borrow and over how long - you can choose a repayment period of between 3 and 60. If you want to pay it back over 2 years for example, you would select 24 months.

Start by filling in our easy application form - it should take you no more than 2 or 3 minutes to complete. As soon as we have your personal and financial details, we compare them against the borrower profiles each of our lenders have shared with us.

Where there's a match, we send your application to each lender in turn.

Each lender who receives your details then runs a soft credit search on you - they'll then get back to us to let us know whether they're happy to receive a full application from you.

We then transfer you to a lender's website

We then automatically transfer you to the website of the lender who gives us the first positive response. When you're there, please complete their full application form.

Once you've done that, the lender will run a hard credit search on you. Within a few seconds, you'll get back one of three possible answers:

• "yes, we'll lend you the money"
• "we're happy to approve your request but for a lower amount than what you've applied for"
• "your application is declined"

How much will my loan cost me?

If you're approved for finance, you'll receive a full quote from your loan provider.

On the deal you're offered, look for the interest rate. Interest rates are charges you for borrowing money from them.

The interest rate determines how much your monthly repayments will be. The higher the interest rate, the higher your monthly repayment.

You will often see on a website something called the representative APR. The representative APR is what a lender charges on the loans they make to 51% or more of their customers. If you receive an offer, it may be higher or lower than the advertised representative APR.

Read, understand, and agree to the terms and conditions

Please make sure that you read, understand, and agree to their terms and conditions before you agree to go ahead with your loan. If you do, a new legally binding finance agreement will exist between you and your lender.

Why use a broker? Why not go direct?

Applying through a broker takes slightly longer - a minute or two.

However, many borrowers favour using a broker for three reasons:

• they make just one finance application - no endless forms to fill in at different lenders' websites
• no more than one hard credit search
• there's less impact on their credit rating

How does it affect a borrower's credit rating less? If you make full applications to multiple lenders in a short space of time, each one of those applications results in a hard credit search. Hard credit searches stay on your credit file for up to a year.

The more hard credit searches a lender sees on your credit file, the less likely they may be to approve your application since they may be concerned that you're having trouble managing your finances.

Will I have to put my house up as security?

No. The loans provided by our lenders are not secured meaning that you don't have to put up your home as security. Some other lenders offer loans secured on borrowers' cars and personal possessions (like a pawnbroker). Any loan offer you receive from one of our lenders is completely unsecured.

Do you charge for your service?

There are no fees payable ever for a customer using the Little Loans service.

How do we make money?

Every time we match a borrower with a lender and the borrower agrees to take out a loan,

Before you apply...

The average household in the UK owes more than £15,000. That's a big number and if you're worried about your level of debt and your ability to manage it, the following services offer free support, advice, and guidance - StepChange, PayPlan, National Debtline, the Debt Advice Foundation, the Money Advice Service, and Citizens Advice.

Apply for 2000 loans at Little Loans

To start your loan application through Little Loans, please click the button below.

For your peace of mind, Little Loans is authorised and regulated by the Financial Conduct Authority.