A £5,000 loan could help you pay for your wedding, improve your home or buy a car. Find out what loans you’re eligible for with Asda Money without impacting your credit score.
You could borrow £5,000 to pay the deposit on your wedding, put towards a new car or pay for a new kitchen. Whatever the reason for borrowing, a £5,000 loan with Asda Money could be the right option for you.
We have a panel of trusted UK lenders that will help find you the right loan for your needs. Eligibility checks are done without impacting your credit score, and you’ll get an initial decision in minutes.
How does a £5,000 loan work with Asda Money?
At Asda Money, we search our panel of trusted UK lenders for a range of offers to meet your needs and requirements. One simple eligibility check and you’ll get offers from some of the best lenders on the market. Then it’s a case of comparing and finding the right one for you and going on to a full application.
When can a £5,000 loan help?
A £5,000 loan could really help you out. If you’re a homeowner, it’s a standard amount to pay for or put towards home improvements. This could include:
- New kitchen or kitchen appliances
- New bathroom or bathroom suite
- Getting the decorators in to redecorate your home
You may also consider a £5,000 loan to buy a car or pay the deposit for a car lease or pay for all or part of your wedding. Many people also take out loans of this amount to consolidate existing debt.
Just remember that, by consolidating, you may extend the term of your debt and increase the total amount you repay.
Types of Loans
- Unsecured personal loans (we offer access to these at Asda Money)
- Usually a small, fixed rate loan for personal use
- For amounts between £1,000 and £25,000
- The amount you can borrow and the rate you see is based on things like your personal circumstances and credit score
- Secured loans also known as homeowner loans (we don’t offer access to this type of loan)
- Typically sums over £15,000 and repaid over longer periods of 5-30 years
- What you can borrow and the interest rate depends on your credit history, your assets and personal circumstances
To borrow with a secured loan, lenders need security in the form of an asset. This is usually your home. It’s important to note that your home can be repossessed if you don’t keep up your payments on any debt secured against it.
- Guarantor loans (not offered with Asda Money)
A guarantor loan between £1,000 and £5,000 may be offered by some lenders. It means that they will only lend you the money if a friend or family member agrees to guarantee the repayment of it if you can’t pay it back. This could help you access the money you’re after if you’ve hit a few bumps in the road with your credit score.
How much will a £5,000 loan cost?
The cost of a £5,000 loan will depend on a range of factors.
First and foremost, when you borrow £5,000 you will have to pay interest. The interest rate or APR, is decided by the lender and will depend on your financial history and credit rating. Secondly, the term of your loan will impact on the eventual cost of your loan.
The higher the interest rate when you take out your loan, the higher the amount you will have to pay.
If you select a longer period to pay off your loan – a £5,000 loan over 5 years compared to a £5,000 loan over 3 years – your monthly repayments will be less but you’ll pay more interest. It will then cost you more in total.
£5,000 loans with bad credit
If you’ve had money or debt problems in the past, this may have left you with a poor credit rating. If this is the case, you may have a smaller pool of lenders willing to lend to you.
You may still be able to secure a £5,000 loan for bad credit, but you will likely pay more in interest rates.
If you are able to borrow £5,000 with bad credit, this can help your credit score in the long run. By borrowing this amount and sticking to your monthly payments, you’re showing responsible borrowing. This can help boost your credit rating.
Will a £5,000 loan affect my credit score?
When you apply for a £5,000 personal loan with Asda Money, the initial eligibility check doesn’t affect your credit score. We provide you with access to a panel of trusted lenders which leave only a soft credit footprint on your file that does not affect your credit rating.
If you decide to take up one of the offers from a panel of lenders, then the lender may then complete a hard credit search. This will show up on your credit file.
Alternatives to a £5,000 loan
If you’re not eligible to borrow £5,000 or the monthly payments are too high for your financial situation, consider borrowing a lower amount.
To borrow smaller sums, a credit card is another option to consider.
Frequently asked questions
- What is the monthly repayment on a £5,000 loan?
The monthly repayment on a £5,000 loan depends on the available deals offered by our panel of trusted lenders. What you pay each month is based on the interest rate provided and the term of your loan. A loan over 5 years will have lower monthly repayments that one over 3 years. Accounting for interest, it will cost more over the long term.
If you want to know whether you are eligible and what the monthly repayments and APR available to you would be, then check your eligibility with no obligation to proceed and see what loan options are available for you.
- Can I get a £5,000 loan without a guarantor?
Yes, see if you are eligible, you can get a £5,000 loan without a guarantor. At Asda Money, £5,000 loans are all offered as unsecured loans.
- Can I get a £5,000 loan without a credit check?
No, when you check your eligibility for a £5,000 loan with one of the lenders from our panel, we will run a soft credit check to find you loan options. If you then proceed with a lender, they may then run a hard credit check before final documents are issued.
- Can I pay back my £5,000 loan early?
It may be possible to pay back your £5,000 loan early depending on your loan agreement with the lender. Many lenders on our panel do not have an early repayment charge but you should always check this within the T&Cs before signing your agreement.
About our trusted provider, Aro
Asda Personal Loans is in partnership with Aro which is a trading style of Freedom Finance Limited, who are a leading credit broker, to offer our customers a different solution to borrowing money and finding a loan. They were awarded Best Consumer Credit Broker in the 2020 Consumer Credit Awards – voted for by customers.
We work alongside Aro so we can provide our customers with their very best loan offer from a panel of handpicked trusted lenders.
With an eligibility check, a panel of carefully selected lenders can provide you with a loan tailored to your needs. It’s also a safe way to find a loan without negatively affecting your credit rating.
ASDA Money is a trading name of Asda Financial Services Ltd who are an Introducer Appointed Representative of Aro which is a trading style of Freedom Finance Limited (company number 06297533) of Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Aro acts as a credit broker and not as a lender and is authorised and regulated by the Financial Conduct Authority (FRN 662079).
Please note: If you take out a loan we will receive commission. This will be a fixed amount or a percentage of the amount you borrow depending on which lender you choose.
Terms and conditions apply. UK residents, aged 18 and over. If you take out a loan or credit card, Aro receive payment from the lender. Aro receive different amounts from different lenders and the payment received will be either a fixed amount or a percentage of the amount you borrow. We will not charge you a fee for our services. If you take out a loan, ASDA Money receive commission from Aro and it will be either a fixed amount or a percentage of the amount you borrow, depending on which lender you choose.