12month loan

How to Borrow 12 Month Loans Online?

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Planning is the best way to build assets. If a big-ticket expense is on the cards, it may wiser to finance it through a loan instead of shelling out your hard-earned savings. Instalment loans can help you spread the cost of your purchase across a few months over fixed monthly instalments.

One of the most common forms of instalment loans is 12 month loans. 12 month loans can help you break down major expenses into manageable instalments over 12 months. So instead of paying a lump sum upfront, you can borrow a 12-month loan to cover the costs. Affordable monthly instalments can significantly ease your financial burden.

In this article, we’ll learn more about 12-month loans and their uses. Should you use a 12-month loan for debt consolidation? Read on to find out.

What are 12 month loans?

12-month loans can be categorized as instalment loans, which are essentially personal loans that you can repay over 12 months. These loans help you finance big-ticket purchases or emergency expenses with a quick disbursal, which you can pay off in affordable monthly instalments.

Paying off a lump sum can put a lot of pressure on your finances. 12-month loans help you maintain your financial balance and make repayments more manageable. Reasonable monthly instalments help in easing your financial burden.

12-month loans are high-cost short-term loans, which means that the interest rates for these loans are high. But just how high the rates can get depends on your credit score. Your credit score is an integral aspect of your loan application. It helps the lender assess your creditworthiness.

Credit scores are a way for lenders to assess the risk involved in lending money to a borrower. If you apply for a 12-month loan with a low credit score, your chances of qualifying for competitive rates are very slim. Planning your loan can buy you some time to improve your credit score before applying for a loan. Applying for a loan with an enhanced score could improve your chances of securing a loan with better interest rates.

12-month loans can be a great opportunity for you to boost your credit score if used responsibly. Lenders report your repayment history to credit bureaus, and each timely repayment contributes towards a better credit score. You may set up a direct debit for your monthly instalments to ensure timely repayments.

Failing to keep up with your instalments can be detrimental to your credit score. If you don’t settle your payments on time, your lender may even get a County Court Judgment issued against you. CCJs can stay on your credit report for a long time, hampering your chances of securing credit in the future. This can adversely affect your financial life goals. Therefore, it is in your best interest to make timely repayments towards your loan.

Can I borrow 12 month payday loans?


Payday loans are one of the most notorious high-cost short-term credit products. The interest rates and APRs for these loans are exorbitant, sometimes exceeding 300%. These loans can be borrowed as a lump sum, and are designed to cover a short-term cash crunch. Payday loans are typically paid off within a week or a month.

Payday loans came under the FCA’s radar after a rampant growth in their popularity as a quick cash alternative. To safeguard the consumer’s interest, the FCA imposed certain price caps on payday loans.

For every £100 borrowed, the lender cannot charge more than £24 over a 30-day loan term. In case you miss a repayment or don’t repay an instalment on time, the maximum default fee that a lender can impose is £15 plus the interest on the amount you borrowed. The overall cap also ensures that you don’t end up repaying more than twice your loan amount to the payday lender.


How to apply for 12-month loans – bad credit?


  • Work out a loan amount: Evaluate your income and expenses to work out a suitable loan amount. This amount should be something that you can afford to repay in the long run.
  • Self-assess your credit score: Checking your credit score beforehand will help you give you an idea of the offers you can expect based on your credit profile. Plus, a prior credit check will buy you time to improve your credit score, dispute any incorrect items or unidentified enquiries.
  • File an online application: Online application forms are usually a quicker and more convenient option since you can apply from any location. Pay attention to each detail while filling your application form – your details, information about the loan, such as the loan amount and tenure. We at Oyster Loans understand how tedious it is to fill lengthy application forms. Our optimal form design allows us to get to know you quickly through apt data points.
  • Compare multiple offers: Once you submit your details, the lender will process your application to offer you pre-approved deals based on a soft check. After you choose a suitable offer, the lender will run a hard credit check on you. Oyster Loans provides a variety of personalised loan offers based on your credit rating and financial circumstances.
  • Complete the contract: Once your loan is processed, you have to complete the contractual formalities. As for all legal documents, it is important to thoroughly go through your agreement and read the fine print meticulously. Does your lender impose a charge on early repayment? What additional fee will you have to pay for missing a payment? Carefully read your agreement for these hidden charges.
  • Wait for disbursal: After you complete the legal formalities, the lender will disburse the loan amount into your bank account via wire transfer. It may take a few hours or days for the transaction to complete, depending on the service of your bank account provider. Once you have the funds, you can use them at your discretion, albeit responsibly.
  • Ensure timely repayments: A 12-month loan, if used responsibly, can be an opportunity for you to boost your credit score. Each timely repayment will help you jump up the ladder. Having a contingency plan will help you stay prepared for unforeseen events. What if you lose your source of income? Will you still be able to pay off this loan? Keep a backup plan to ensure timely repayments in such situations.

How to use a 12 month loan for personal loan consolidation?

Debt consolidation is a great way of simplifying your debts and organizing your finances. You combine all your debts into a single loan. 12-month loans can help you pay off high-interest debts. Having to pay off a single debt instead of keeping up with multiple loans enables you to manage repayments more efficiently.



You can use a 12-month loan to finance unplanned medical bills, emergency car repair, pre-planned home improvement, or debt consolidation. 12-month loans can be a good way to improve your credit score. All you need to do is sincerely pay your instalments on time. Each timely repayment will boost your credit score, making it easier for you to secure credit to finance future goals.