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The best loan rates for a £10,000 loan
The best representative Annual Percentage Rate (APR) for a £10,000 unsecured personal loan is currently 6.1%, according to the independent financial product research firm Defaqto.
This rate is being advertised by Nationwide and Tesco Bank. However, in addition to a good credit score, you will also need a Nationwide current account to apply for a loan from Nationwide, or a Clubcard to access Tesco Bank’s either bank’s preferential 6.1% APR.
In the table below you’ll find loans from well-known providers, including banks and high street names, as well as loans from providers that you may not have heard of. The figures below show the cheapest loan rates for £10,000 based on a representative example of £10,000 repaid over five years, along with the estimated £10,000 loan repayments and total payable. We’ve listed the loans by APR, from lowest to highest. Where lenders offer the same representative APR, we’ve ordered the loans based on our star rating.
Provider | Representative APR | Estimated monthly repayments | Estimated total payable | NerdWallet’s Rating | |
|---|---|---|---|---|---|
 | 6.1%* | £193.02 | £11,581.20 | 5.0 / 5 | |
 | 6.20% | £193.47 | £11,608.20 | 5.0 / 5 | |
| | 6.20% | £193.47 | £11,608.20 | 4.5 / 5 | |
 | 6.20% | £193.47 | £11,608.20 | 3.5 / 5 | |
 | 6.60% | £195.23 | £11,713.80 | 4.5 / 5 | |
 | 6.60% | £195.23 | £11,713.96 | 3.5 / 5 | |
 | 6.90% | £196.60 | £11,795.58 | 3.5 / 5 | |
 | 6.90% | £196.58 | £11,794.80 | 3.5 / 5 | |
 | 8.70% | £204.55 | £12,273.00 | 4.0 / 5 | |
 | 9.90% | £209.91 | £12,594.60 | 3.5 / 5 |
* This is a preferential rate for people with a Clubcard – the representative APR for non-Clubcard members is 6.5% for the same amount and term.
John Lewis Money loans are provided by Zopa Bank.
Important information: APR is checked weekly based on data about 42 providers from the independent financial information service Defaqto. For the table above, we haven’t included products with limited availability, for example, they are only available to existing customers or limited solely to homeowners. We aim to provide accurate information but prices, terms and conditions of products and offers can change, so double-check first. Our Star Ratings do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Loan rates can be dependent on your personal circumstances and specific loan requirements. Representative examples are based on information from the lender and are not necessarily based on the same loan amount or loan term.
What to consider when choosing a £10,000 loan
A £10,000 loan could help fund a large cost such as a wedding or home renovation. It’s a large sum to borrow, so make sure that a personal loan is the right option for you and that you are only borrowing what you need. If your circumstances change and you’re not able to keep up with your repayments, a large debt could build quickly and your credit score will be damaged.
You’ll want to make sure you’re getting the best rate possible for your financial situation and credit history. Your loan rate can make a big difference to your monthly repayments and the overall cost of the loan.
Checking your eligibility and credit score before applying for a loan shows you the likelihood of your application being accepted, which helps to limit the number of applications you make. Making multiple applications for credit over a short time can damage your credit score.
The lender may be able to tell you the rate you’re likely to receive before you apply, but the lender’s final decision will come when you apply properly.
Here’s what else to consider when comparing £10,000 loans:
Annual Percentage Rate (APR)
The APR helps you to compare loans by illustrating the yearly cost of borrowing money, including the interest rate and any standard fees. The representative APR that lenders are required to show you is the rate 51% of applicants can expect to receive.
This doesn’t necessarily mean that the APR you receive will be the same as the representative APR. It could be the same, or higher or lower.
The loan amount and term you choose can influence the rate you receive.
If you have a good credit history, you’re more likely to receive the best rates for a £10,000 loan. When deciding on your loan rate, the lender also looks at your affordability and even information it already has about you, for example if you have another product with the same firm.
The cost of the loan
The loan will be less expensive overall if you choose a shorter loan term, but you’ll pay more monthly. Because £10,000 is a large amount, a shorter loan term means that your monthly repayments could be expensive.
On the other hand, longer loan terms make the monthly repayments smaller, but the loan will be more expensive overall.
It’s important that the monthly repayments are affordable and you’re comfortable with the total cost of the loan. You can complete a budget to work out what you can afford monthly.
Your credit history
To borrow £10,000, many lenders will require that you have a good credit history.
The lender usually checks your credit history when you apply for a loan, which helps them work out the likelihood you’ll keep up with your repayments.
Your credit score is a three-digit number that represents how lenders may view your credit application. Knowing your credit score gives you an idea of the borrowing options available to you:
- a bad credit score indicates that your options for borrowing are more limited – you may receive a higher interest rate, or your application could be rejected altogether
- a good credit score means it’s more likely that your application will be accepted and that you’ll receive a good interest rate
If you don’t have the best credit score and don’t need the money straight away, improving it before applying for a £10,000 loan could open more options for borrowing and make the loan cheaper.
It takes a while to improve your credit score by making payments on your credit accounts on time, so give yourself between six and 12 months to build a positive history.
NerdWallet’s star rating
Our star rating can help you compare loans because we rank providers based on features like repayment flexibility and the ease and speed of the application process.
For instance, does the lender charge a fee to settle the loan earlier than planned? Is there a large range of payment amounts and loan terms to choose from?
These ratings are based on 20 of the features that customers have told us are the most important.
We review the personal loans market monthly, checking the ratings that we’ve awarded. We gather information from lenders’ websites, company representatives and the independent financial product analyst Defaqto. In addition, we regularly add new brands and our editorial team reviews them against the same criteria for consistency and accuracy.
Our star ratings are based on this data across all products and features and presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’. We don’t factor APR into our star ratings.
Read more about our review methodology and what we mean by ‘best’.
» MORE: Compare the best personal loans
Taking a £10,000 loan over different loan terms
You need to pick how long you’d like to pay the £10,000 loan back over when you apply. For a £10,000 loan this can typically be between one and five years, but some lenders may offer longer terms.
The longer the loan term, the more expensive your loan will be overall. But your monthly repayments will be higher if you choose a shorter loan term, so it’s important to consider what you’re comfortable with.
The table below is only for illustrative purposes, but it gives an idea of the monthly repayments and total repaid over different terms for a £10,000 loan taken at a 6.9% APR. You can see that shorter loan terms for a £10,000 loan mean significant monthly repayments:
| £10,000 taken over | Monthly repayments | Total repaid | Interest paid |
|---|---|---|---|
| One year | £864.01 | £10,368.01 | £368.01 |
| Two years | £446.41 | £10,713.78 | £713.78 |
| Five years | £196.60 | £11,795.58 | £1,795.58 |
To work out what you can afford, use our personal loans calculator and estimate your monthly repayments for a £10,000 loan over different terms and APRs.
Sam Bromley, Lead Writer and Personal Loans Expert at NerdWallet
What Our Nerds Say
“If you choose a longer loan term, you can always make extra repayments to help reduce the overall cost of the loan. Be sure to check whether the lender charges any fees or places any restrictions on overpayments.”
Can you get a £10,000 loan for bad credit?
There are specialist lenders who provide loans for bad credit, so you may be able to get a £10,000 loan even if you don’t have the best credit score.
However, your options will be more limited than if you have a better credit score. Some of the bad credit lenders we review don’t offer loans of £10,000 for example, with a maximum loan of £5,000 available.
Bad credit loans are more expensive than regular personal loans. Providers charge higher interest rates because they think there’s an increased risk of lending to someone who can’t show that they’ve got a history of making repayments on time.
The best loan rates for a £10,000 bad credit loan
The best representative APR for a £10,000 bad credit loan is currently 25.8%, according to Defaqto. This rate is advertised by Abound.
The figures in the table below show bad credit lenders that offer loans of £10,000, based on a representative example of £10,000 repaid over five years. We’ve ordered the loans by the lowest rates, unless two or more lenders advertise the same APR, in which case we’ve ordered them by our star rating.
What is a representative example?
Lenders are required to show you a representative example, which displays the cost of borrowing a particular amount over a specific period. The example displays:
- An example loan amount, such as £10,000.
- An example loan term, such as 60 months.
- A monthly repayment amount and the total repayable over the loan term.
- The annual interest rate and whether it’s fixed or variable.
Provider | Representative APR | Estimated monthly repayments | Estimated total payable | NerdWallet’s Rating | |
|---|---|---|---|---|---|
 | 25.80% | £283.48 | £17,008.04 | 4.0 / 5 | |
 | 34.90% | £325.44 | £19,526.44 | 3.5 / 5 | |
 | 34.90% | £325.46 | £19,527.60 | 3.0 / 5 |
Late repayments can cause you serious money problems. Consolidating multiple debts into one loan can extend the term of your borrowing and increase your cost of borrowing.
Important information: APR is checked weekly, and data is supplied by the independent financial information service Defaqto. We aim to provide accurate information but prices, terms and conditions of products and offers can change, so double-check first. Our Star Ratings do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Loan rates can be dependent on your personal circumstances and specific loan requirements.
» MORE: Compare the best bad credit loans
£10,000 loan: am I eligible?
Eligibility for a £10,000 loan depends on the lender but there are some common loans eligibility criteria. Lenders often list eligibility requirements on their websites.
You’ll often need to:
- have a regular income
- be a UK resident
- have a good credit history
- be at least 18
» MORE: How to get a loan
How to check your eligibility for a £10,000 loan
Lenders usually carry out a ‘hard’ search of your credit history when you apply for a loan, which is a full look at your credit file. Too many hard searches over a short time can damage your credit score because it can signal that you’re relying on credit, so you’ll want to be confident about being accepted for a loan.
One way to feel confident is by checking your eligibility for a loan before applying, which many lenders allow you to do on their website.
You usually have to enter details such as your address history and financial situation. Then the lender carries out a ‘soft’ credit check, which doesn’t damage your credit score and only you can see on your credit report. After its checks, the lender should be able to tell you the likelihood of being accepted for a loan.
The lender may also give you an idea of the rate you’re likely to receive, but the final decision on your application and rate will always come when you formally apply for the loan.
Otherwise, you could use a service that checks your eligibility for a loan across multiple lenders, showing you loans you’re likely to qualify for. These loan eligibility services should also only carry out a ‘soft’ search after you’ve entered your information, but be sure to check beforehand.
Checking your credit score before applying
Your credit score helps you to work out the likelihood of being accepted for a loan. A better score indicates that you’ll have more options for borrowing than someone with a poorer score. Your loan will probably be cheaper too.
If you don’t need the money right now, it’s worth improving your score before applying for a £10,000 loan. The total cost of a £10,000 loan over five years from the cheapest bad credit lender is over £5,000 more expensive than from the cheapest regular provider.
It can take from six months to a year to improve your score, because lenders want to see a track record of making your repayments on time.
What can a £10,000 loan pay for?
A £10,000 loan can help pay for a significant cost, such as home renovations or education. The lender will usually ask you why you want to borrow the money when you apply, giving options including:
- home improvements
- buying a car
- debt consolidation
- paying for education
- going on holiday
- paying for a wedding
Lenders often highlight these as reasons to take out a personal loan, but you can mostly put the loan towards whatever you like. There are restrictions on what you can borrow for – you can’t use the loan for investing, gambling, starting a business or as a deposit for a house, for instance.
Whatever your reasons for borrowing, make sure that you don’t apply for more than you need. If your repayments are higher than necessary and your overall expenditure increases in the future, your loan could become less affordable. If you then miss one or more payments, your debt will build and your credit file will be damaged
Different types of £10,000 loan
£10,000 loans can come in different forms than regular personal loans and bad credit loans. These include:
These loans can be easier to get than regular loans, because lenders make up for the risk of the loan going unpaid in different ways.
For example, guarantor loans require another person on the agreement who can step in and make the payments if you’re unable to. Secured loan providers can repossess your home, and credit union loans offer much more restricted borrowing options and usually require you to be a member of the credit union.
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