£7,000 Loans

What do I need to get a £7,000 loan?

My Community Finance works with credit unions to help you access fair, affordable loans. Credit unions are not-for-profit organisations, which means any profits made from members that borrow money are returned to its savings members through better interest rates or reinvested back into the credit union so it can improve its services and reach more people. 

In order to borrow £7,000 from one of our partner credit unions, you’ll need to become a member. 

The membership criteria can vary between credit unions. The credit unions we work with accept people in almost all fields of employment, as well as members of organisations such as the Co-Op and National Trust. When you apply for a £7,000 loan via our websites, we’ll match you with the credit union that best suits your circumstances. 

As well as becoming a member, to be eligible for a £7,000 loan from one of our credit unions, you’ll also need to:

• Be aged between 21 and 65
• Live in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man)
• Be employed and earn at least £18,000 per year

Your ability to borrow £7,000 will also be subject to credit and affordability checks that will be performed by the credit union when you apply for a loan. 

How do I apply for a £7,000 loan?

Our online form makes it simple to apply for a £7,000 loan with one of our credit unions. Here’s a guide to the application process:

• First, you need to decide over what time period you want to pay your £7,000 loan back. The credit unions we work with offer loan terms from 12-60 months.
• You’ll then request a personalised quote. To provide you with this, we’ll perform a soft credit check which won’t affect your credit score, and only you’ll be able to see a record of it on your credit report.
• If you pass the eligibility criteria set by our partner credit unions, we will let you know the APR you will be offered on your £7,000 loan - your personalised quote is valid for 30 days. a
• We will then send you a loan agreement, coupled with terms and conditions of the loan contract, for you to review to ensure the loan of £7,000 is the right product for you. Once you have read and are happy with the terms of the loan you’ll need to sign your loan agreement.
• To complete our final checks, we will then conduct a hard credit search on your credit report, which other lenders or any organisation with access to your report will be able to see. 
• The credit union will aim to make a final decision about your personal loan within two working days. If successful, you should receive your £7,000 within approximately four working days of your application.

What can I use a £7,000 loan for?

There could be a number of reasons why you might want to apply for a £7,000 loan. You may want to spread the cost of a new car, family holiday or contribution towards a wedding. You may also be looking to furnish your new home or for help covering unexpected expenses. 

A £7,000 loan could also be used to consolidate high-interest debts into one affordable monthly payment. A £7,000 loan to consolidate credit card debts could be a good option if you’re unable to get the best balance transfer deals.

How soon could I get a £7,000 loan?

In the majority of cases, the credit unions we work with will get your money to you within approximately four working days. 

They’ll aim to get you a decision on your £7,000 loan application within two working days and for you to receive the funds within another two working days. 

In some circumstances, this process may take longer, for example if additional identification or fraud checks are required.

How much would a £7,000 loan cost?

The overall cost of a £7,000 loan from one of our credit unions will depend on a couple of factors - your loan term and your interest rate. 

When you apply for a loan with one of our partner credit unions, you’ll receive a personalised interest rate based on your personal circumstances. 

You can use our loan calculator to work out an estimate of the total cost of a £7,000 loan, but it’s important to remember that this will only be a guide. The APR used in the loan calculator is an indicator of how much interest a typical borrower will be charged, but the APR on your loan quote may differ. The actual overall cost of your loan could be higher or lower than the example provided. 

How long will it take to repay a £7,000 loan?

How long it will take for you to repay your £7,000 loan will depend on the loan term you opt for when you apply. The credit unions we work with offer loans between £1,000 and £25,000 over 12 to 60 months. 

Having a longer loan term will mean your monthly payments are lower, but the overall cost of your loan will be higher. It’s important to weigh up how much you can afford to pay each month and how long it will take for you to repay a £7,000 loan.

Can I get a personal loan for £7,000?

The credit unions we work with do offer £7,000 personal loans, but your ability to borrow from one of the credit unions we work with will depend on several factors such as your credit score, financial history, ability to afford the loan and whether or not you meet the eligibility criteria. 

Our partner credit unions offer unsecured loans between £1,000 and £25,000. Having an unsecured personal loan means you don’t need to offer an asset, such as a property you own, as collateral.

What credit score do I need for a £7,000 loan?

In the UK, there are three main credit reference agencies: Equifax, Experian and TransUnion. Each of these credit reference agencies has its own scoring methods. Despite this, you’ll typically fall into one of four categories: Excellent, Good, Fair or Bad. 

The credit unions we partner with are designed for those with a “fair” credit rating or above. Here’s what each of the three major credit reporting agencies considers to be a “fair” credit score:

• Equifax - Between 439-530 (out of 1000)
• TransUnion - 566-603 (out of 710)
• Experian - 721-880 (out of 999)

There are websites and apps, such as Experian, Clearscore and Credit Karma, that allow you to check your credit score for free. 

Can I get a £7,000 loan with bad credit?

If you’re looking for a £7,000 loan but you have a bad credit score, taking steps to improve your score before you apply for a loan may give you a better chance of approval. Here are some tips on boosting your credit score:

• Make sure you pay your bills and credit repayments on time and in full
• Register yourself on electoral roll, because this helps to prove your fixed address 
• Avoid making more than two new credit applications within a six-month period - too many applications for credit in a short period of time may suggest to lenders that you’re in financial difficulty 
• Check all the information on your credit report is correct and up-to-date, if you spot a mistake, let the credit reference agency know ASAP
• Don’t withdraw cash from credit cards; this can make lenders think you’re in financial trouble
• Aim to keep your credit utilisation below 25% of your credit limit

Could I pay back a £7,000 loan early?

If you take out a £7,000 loan with one of our credit unions, you will be able to pay your loan back before the end of your loan term.

However, they may charge an additional fee if you pay back what you owe before the end of your term agreement, so it’s important to consider whether doing so will cost you more overall.

However, you can repay your loan fully without incurring any fees if you do this within 14 days of the day you received the loan agreement. This means that if you change your mind about borrowing, you can pay back your loan in full during this period without incurring any fees or penalties.