Loans for Young People
Being a young person and managing your money isn’t always the easiest task. You may be juggling debt from being a student or finding it hard to secure a job after education. We’re here to help you make a decision that is right for you.
At Simple Personal Loans, we offer personal loans from as little as £1,000 up to £35,000. If you’re struggling with your finances, understanding which all your options is the first step you need to take.
Personal Loans for Young People
Looking for a loan when you’re aged 18-24 can be hard seeing as your credit history hasn’t had much use. Many young people will have a very poor credit score purely because they have never taken out any kind of loan or credit before.
If you’re interested in taking out a loan for wants rather than needs, you should make sure to borrow responsibly. Saving up your own money is always the key step to buying what you want. However, on the occasion that you require a loan for a unique purchase like a used car, a loan would suffice if you can acquire one at a low rate.
Reasons young people might want a loan:
- Car
- Debt Consolidation
- Home
- Wedding
- Holiday
- Luxuries
Can I get a loan aged 18 to 24?
Yes, all lenders require you to be at least 18 years old before taking out a loan. In terms of the lenders that Simple Personal Loans works with, they will require someone to be over the age of 18 in order to apply. However, in certain cases, it may be required that a borrower is over the age of 21. This is in order to be granted a loan.
If you are aged 18 or over and borrowing credit for the first time, you should expect to pay higher interest rates than those that have a proven credit history.
What types of loans are available for young people?
Personal Loans – we work with a number of lenders who may well be willing to accept you for a personal loan. However, it is important to keep in mind that if approved, it may be for a small amount, and potentially at a higher interest rate due to the risk that they are taking on you. consider all your options and have a look at other loans.
Unsecured Loans – also known as a personal loan, these loans aren’t attached to any collateral. The only assurance the lender has that you will repay the debt is your creditworthiness and your word.
Guarantor Loans – unsecured loans that can to be taken out between 1 to 6 years and generally. At Simple Personal Loans, you can borrow between £1,000 to £35,000, sometimes higher. When applying for a guarantor loan you are required you to have a second person acting as a guarantor.
Alternatives to loans
Depending on how much you need to borrow and when you need the money, there are other options available to you:
Saving up money – Reorganising your budget and prioritising needs and wants will help you think about what you can afford.
Borrowing off family and friends – No one likes to ask but often, borrowing from your family and friends is the cheapest and safest option. Ask around and see if anyone can help.
Credit cards – Designed for those with limited or no credit history, these credit cards can help you build up your credit score.
Authorised overdraft – Great option for small emergencies but don’t use it for big spends as it can get severely pricey.
Financial difficulties
If you’re trying to manage existing debt or in financial difficulty, consider what your options are before you borrow. For further help on managing your money, visit the Money Advice Service.