Trustpilot
Show More

Ask an Expert

What is the minimum salary required to take out a personal loan?

The simple answer is that there is no minimum salary requirement that will guarantee you will be approved for a loan. Income is one of the important factors when lenders assess your loan eligibility, but it isn’t necessarily a deciding one.

Some lenders may well have salary requirements. For example, the Post Office and the AA both state that you must have a minimum annual income of £12,000 to apply for a personal loan. But there is no universal minimum. This is because lenders are interested in a number of other factors such as:

  • Your credit history

  • Your employment status

  • Your current debt

  • Your expenses

  • Your assets

  • Any other financial commitments you might have

If you discover that you do not meet the lender’s minimum requirements, then there are a number of ways that you can improve your chances of being approved for a loan:

  • Use a guarantor – guarantor loans are less risk to lenders as they have a guarantee that the loan will be paid back, even if you are unable to.

  • Apply for a lower amount – borrowing less mean less risk to the lender and lower repayments for you.

  • Use your bank – your current bank is more likely to give you a loan than another lender, as long as you have a good banking history.

If you compare loans with Money Expert, we'll run soft eligibility check that won't show up on your credit score.

Related guides

Best Ways to Get a Small Loan - Money Expert

A small loan can be a great way to secure funds quickly, especially in emergencies or when unexpected expenses arise. While small loans often come with high-interest rates, there are ways to minimize costs by shopping around and comparing options.

How to Improve Your Credit Score

A good credit score is essential for borrowing money, securing insurance, and accessing financial products like credit cards. It can also influence your ability to rent a property or even secure certain jobs. A higher credit score opens doors to financial opportunities, while a poor score can limit your options and increase costs. This guide will walk you through the basics of understanding your credit score, how it’s calculated, and steps you can take to improve your credit score. Whether you’re starting from scratch or recovering from a poor score, this guide provides actionable tips to help you achieve your financial goals.

Buy Now Pay Later Explained

Buy Now Pay Later explainedBuy Now Pay Later (BNPL) is an enticing option, offering flexibility and convenience when making purchases. However, for all its temptations, there are some essential and serious factors to consider before committing to this payment method.Let’s explore the world of BNPL, examining how it works, its benefits, drawbacks, and potential impact on financial well-being.