First time loans for 18 year olds.
If you are 18 years old, you will have a very limited credit history. Many lenders will consider young peple a risk. At Payday UK, we can still help to introduce you to the loan you need.
Loans for 18 Year Olds.
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When you turn 18, you’re legally recognised as an adult. This opens the worlds of voting, alcohol, and personal finance. However, at 18, your income can be unstable, you’ll probably have no meaningful credit record, and you might not be on the electoral register yet.
This all makes you a higher risk to a traditional loan company and makes it more likely you’ll be denied credit, which turns no credit history into worse credit history. There are ways you can start building your credit score to make future borrowing easier.
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Check EligibilityFirst time loans for 18 year olds.
If you are 18 years old, you will have a very limited credit history. Many lenders will consider young people a risk. At PaydayUK, we can still help to introduce you to the loan you need.
When you turn 18, you’re legally recognised as an adult. This opens the worlds of voting, alcohol, and personal finance. However, at 18, your income can be unstable, you’ll probably have no meaningful credit record, and you might not be on the electoral register yet.
This all makes you a higher risk to a traditional loan company and makes it more likely you’ll be denied credit, which turns no credit history into worse credit history. There are ways you can start building your credit score to make future borrowing easier.
How it Works
We know you need your money as soon as possible. That’s why we have designed our website to be fast and simple.
Apply Online
Fill out our short, secure form and search an industry-leading panel of lenders to find your loan.
Check Your Offer
Once you have your offer from the lender, you can review the offer and get your cash.
Get Your Money
Once accepted, your money can often be paid into your account the same day.
Loans for 18 Year Olds With No Credit History
Finding loans for 18 year olds with no credit history can feel like an impossible task. You need credit to build a credit history, but lenders want to see a credit history before they approve you. It’s a frustrating catch-22 that many young people face.
The good news is that specialist lenders understand this challenge. Our industry-leading panel includes lenders who focus specifically on helping first-time borrowers and young people starting their financial journey.
These lenders look at your current circumstances and affordability rather than penalising you for simply being young. When you apply through PaydayUK, we search our entire panel to find lenders most likely to approve your application.
Why Loans for Young People Can Be Hard to Find
Traditional high street banks often have strict criteria that automatically exclude young borrowers. They prefer customers with years of credit history and stable employment records.
At 18, you simply haven’t had time to build these things. You might have never had a credit card, taken out a phone contract in your own name, or paid bills that get reported to credit reference agencies like Experian, Equifax, or TransUnion.
This doesn’t mean you’re irresponsible with money. It just means you haven’t had the opportunity to prove yourself yet. Our panel of lenders who work with people who have credit challenges can help bridge this gap.
Soft credit check only. No impact on your credit score. See your options in minutes.
Eligibility Requirements
To apply for a loan through PaydayUK, you’ll need to meet these basic requirements:
● Be at least 18 years old (legal requirement in the UK)
● Be a UK resident with a valid UK address
● Have a regular income from employment, self-employment, or benefits
● Have a UK bank account and debit card
● Have a valid email address and UK mobile number
Having no credit history does not automatically disqualify you. If you’re looking to start small, consider a £100 loan or £200 loan to begin building your credit.
How Borrowing Could Help Build Your Credit Score
Taking out a small loan as a young person gives you the opportunity to start building your credit history. When you make all your repayments on time, this positive information is reported to credit reference agencies.
Your credit score affects many aspects of adult life: mobile phone contracts, renting a flat, car finance, and eventually getting a mortgage. Starting to build good credit at 18 gives you a head start.
This only works if you borrow responsibly and never miss payments. Late or missed payments will damage your credit score and remain on your file for six years. Our guide to improving your credit score has more detailed advice.
Why Choose PaydayUK for Your First Loan
As a first-time borrower, choosing the right service matters. Here’s what makes PaydayUK different:
Scale and experience: Over 1 million customers helped since 2020. We process 7,500+ loan applications every single day.
Credit score protection: Our soft search technology leaves no mark that other lenders can see. Only if you proceed with a lender will they perform a full credit check.
Flexible amounts: Borrow from £50 to £5,000 with repayment terms from 3 to 36 months. For shorter commitments, a 3 month loan might suit your needs.
Trusted by customers: 4.7 out of 5 stars on Trustpilot from over 6,281 reviews.
Over 1 million customers helped since 2020. FCA-regulated lenders only.
What Can Young People Use a Loan For?
Young people take out loans for many different reasons:
● Car repairs or deposits for a first vehicle
● Rental deposits when moving into your first flat
● Emergency expenses like broken phones or laptops
● Unexpected bills or one-off costs
● Course fees or educational materials
Whatever your reason, borrow only what you need and ensure you can afford the repayments. Short-term loans are designed for temporary financial gaps, not ongoing expenses.
If you find yourself regularly needing to borrow, our guide to budgeting offers practical advice for managing money effectively.
Alternatives to Consider
A loan is not always the best solution. Before applying, consider these alternatives:
Family or friends: Borrowing from them might be interest-free. Agree clear repayment terms to avoid damaging relationships.
Credit unions: These member-owned cooperatives often have flexible lending criteria and lower interest rates. Find yours at findyourcreditunion.co.uk.
Payment plans: If you’re struggling with bills, contact the company you owe. Many utility providers and councils offer payment plans.
Free debt advice: MoneyHelper and StepChange Debt Charity offer confidential guidance.
Tips for First-Time Borrowers
Only borrow what you need. Every pound borrowed costs money in interest. Keep your loan as small as possible.
Check you can afford repayments. Look at your monthly income and expenses realistically before applying.
Check your credit report first. Use free services like ClearScore or Credit Karma to understand your position.
Set up a direct debit immediately. This ensures you never miss a payment accidentally.
4.7 out of 5 stars on Trustpilot. 7,500+ applications processed daily.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk
How it Works
We know you need your money as soon as possible. That’s why we have designed our website to be fast and simple.
Apply Online
Fill out our short, secure form and search an industry-leading panel of lenders to find your loan.
Check Your Offer
Once you have your offer from the lender, you can review the offer and get your cash.
Get Your Money
Once accepted, your money can often be paid into your account the same day.
Frequently Asked Questions About Loans For Young People
Yes. Looking for a loan for 18-year olds can be tricky. At 18 there is a good chance you will have little or no credit history. This can put some lenders off approving you, and the loans most traditional lenders offer start at large amounts. A small short-term loan for an 18-year old can be the ideal way to start building your credit history over a short time.
Our brokers panel of lenders specialises in providing loans to people in stressful situations. Whether you have bad credit, no credit, or don’t tick all the boxes required for a traditional lender, we can typically help.
No. Many lenders view 18-year olds as too high risk to lend to. This can create a catch-22 situation for younger people. Companies effectively say, ‘Go away, come back when you have a proven track record.’ However, if everyone said this, it would be impossible for even the most financially astute young person to secure a loan and gain the experience.
This is why many young lenders use short term loans for a small amount, sometimes repeatedly, to build their credit score. It provides a route to a better credit rating that allows them to prove they can manage their finances and will pay what they owe on time. With each successful loan or line of credit that appears on your credit report, you become less of a risk to future lenders.
Yes. Having no credit history shouldn’t exclude you from the loan market; otherwise, how would you ever start to build a credit history.
The best loan for each person will depend on various factors. When you use our service, our broker will compare our industry-leading lenders to bring you the best loan available to you at that time. This gives you peace of mind knowing you’re getting the best deal, as well as saving you lots of time.
You can apply for loans starting from £50 up to £5000. You can choose a repayment term to suit your circumstances. We offer repayment terms between 3 and 36 months. People only borrowing a small amount, such as a short term loan for an 18-year old, generally, choose a shorter repayment period to minimise the interest they are charged.
The best loan for each person will depend on various factors. When you use our service, our broker will compare our industry-leading lenders to bring you the best loan available to you at that time. This gives you peace of mind knowing you’re getting the best deal, as well as saving you lots of time.
You can apply for loans starting from £50 up to £5000. You can choose a repayment term to suit your circumstances. We offer repayment terms between 3 and 36 months. People only borrowing a small amount, such as a short term loan for an 18-year old, generally, choose a shorter repayment period to minimise the interest they are charged.
Many customers receive funds the same day if approved. Our application takes 60 seconds with an instant eligibility decision. Some customers report receiving money within 10 to 20 minutes of final approval.
No documents needed for the initial application. Just provide your personal details, address, employment information, and income. Lenders may request proof of income or identity before releasing funds.
No, we’re a credit broker, not a lender. We connect you with our panel of FCA-regulated lenders through a single application. Our service is completely free.
Missing a payment can result in charges up to £15 and will damage your credit score. If you think you might miss a payment, contact your lender immediately.
Loan guides
These guides will help you find out more about the different types of loan and lenders available.
