Instalment Loans

Cara Bradley

Written by

Cara Bradley

4 min read

Updated: 12/01/2024

If you’re looking for a loan that you can repay in monthly instalments over a term to suit you, Viva Money might be able to help you search.

What are instalment loans?

Instalment loans are a way to spread the cost of money borrowed over a set number of months or years, rather than having to pay it all back in one go. This could make borrowing more manageable.

How do instalment loans work with Viva Money?

Viva Money work with a panel of lenders who offer loans from £100 to £10,000. Depending on how much money you apply to borrow, you could repay your loan in instalments between 3 and 60 months.

If you are approved for a loan, you will need to make repayments each month until your balance is repaid in full.

Who can apply for instalment loans?

Each lender will have their own eligibility criteria when it comes to applying for loans.
To search for an instalment loan with Viva Money, you must:

  • Be over the age of 18;
  • Be a UK resident with a UK address;
  • Have a UK-issued bank account with a valid debit card; and
  • Have a regular source of income paid directly into your bank account.

Can I get an instalment loan with bad credit?

You may still be able to search for an instalment loan if your credit score is currently looking a little worse for wear.
Viva Money work with a large panel of trusted lenders, all of whom are authorised and regulated by the Financial Conduct Authority (FCA). A number of our lenders specialise in loans for those with poor credit.
While being approved for an instalment loan with bad credit may still be possible, it’s important to know that you might not be able to borrow as much money as you’d like, and, if you are offered a loan, it could be at a higher interest rate.

Can I get an instalment loan if I have no credit history?

You may have little to no credit history if you’ve never borrowed credit or paid bills before; this is also referred to as having a ‘thin’ credit file.
If you have a thin credit file, it may be difficult to get approved for a loan. This is because lenders have no evidence of how you have managed credit in the past and, as such, may consider lending to you a risk.

Some of the lenders on the Viva Money panel are happy to consider applications from those with thin credit history, although if you are offered a loan the interest rate available to you could be higher.

Could improving my credit score increase my chances of being approved for an instalment loan?

A higher credit score could improve your chance of being approved for credit products, such as loans. You may also find that you are offered better interest rates, which could lower your overall cost of borrowing.

There are various ways to work towards a healthier credit score, including:

  • If you have a credit card, stay well within your credit limit and make at least the minimum repayment amount each month. If it’s comfortable for you to do so, try to pay more than the minimum amount due.
  • Check your credit report for errors. If you spot a mistake, contact your credit reporting tool and ask for this to be amended.
  • Pay your bills and any existing credit commitments on time each month.
  • Register to vote. This will enable potential lenders to identify you at your current address.
  • You might be considering a credit builder credit card as a way to boost your score. These credit cards are designed for small, regular purchases that can be comfortably paid off each month. When used alongside other credit-boosting methods, a credit builder credit card could help to improve your score over time.

Why use Viva Money to search for an instalment loan?

  • Our service is completely free.
  • Our straightforward online form should take no longer than 5 minutes to complete, and can be filled out at a time and place to suit you.
  • Your no-obligation decision will be displayed on your screen in around 60 seconds.
  • Using a credit broker like Viva Money could help to protect your credit score.

When you apply for a loan directly with a lender, they will run a hard credit search as part of the full application process. Too many hard searches over a short period of time can lead to a decline in your credit score. Viva Money are able to compare loans with a number of providers using soft search technology – this doesn’t affect your credit score.

If you are matched with a lender and go on to complete a full application, this will involve a hard credit check, which will be visible on your credit report.

I’m worried about my finances. What can I do?

Money worries can leave us feeling isolated, but speaking up and reaching out for help are the first steps towards taking back control.

We understand that discussing money openly can be daunting, but know that you can always find free, impartial advice on various websites, such as MoneyHelper, National Debtline, and Citizens Advice.

If you need a little extra advice to help you decide on your next steps, you might like to take the Viva Money and StepChange Money Health Check quiz. The quiz is free to take, will have no impact on your credit score, and the answers you provide will remain strictly confidential.