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18 Month Loans

What to consider when choosing 18 month loans over a shorter period

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Before applying for 18 month loans, please check your finances to ensure that you will be able to meet your repayments. If you are struggling then an 18 month loan may not be right for you.

At Moolr, work with over 50 lenders who provide loans with flexible repayment terms, including 18 month loans.

Before deciding on the length of the loan you require, we want you to understand the implications of all your options. Please read on to learn more about spreading the cost of borrowing over 18 months.

Criteria for Acceptance

There are a lot of things that lenders consider when they receive a potential customer’s loan application. This is known as their “acceptance criteria”. Acceptance criteria varies from lender to lender, as each has a ‘type’ of customer they are willing to lend to, to suit their business model. It is these criteria, that in a nutshell, determines whether an application is viable. In the main, that the risk of not recouping the 18 month loan is minimal. Examples may be customer income, age, or credit history.

Credit History

If we take credit history as an example of how it can affect your application, we learn that this is one of the key indicators of creditworthiness.

Your credit history is all your previous borrowing patterns – how much, when, what has been repaid, how many missed payments, and how many successful repayments. All of this forms your credit score. For instance, if you opt for an 18 month loan, and meet all 18 repayments on time, and settle the debt, it will have a favourable impact on your credit score.

Credit Score

That is to say, you will witness a higher number for your credit score. In turn, this means that any future loan application will have a higher chance of acceptance.

Conversely however, any missed or late payment will be marked on your credit report, and go against you. Depending on how many of these you accumulate, this can have a negative impact on your credit score. In this scenario, you will find it harder to obtain finance in the future.


So we can see that budgeting is essential, in order to protect, and even improve your credit score from borrowing. This is where 18 month loans can come in useful. It means you can pay less per month, to suit your income and expenditure, and give yourself more of a chance to repay the loan.

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Why Not Repay Sooner?

Spreading your loan over 18 months is a great way of balancing out your income and expenditure, to comfortably fit your loan repayments in to your finances.

Your Finances

Of course, we all want to have no outstanding loans, and it’s easy to think that applying for a loan over fewer months would be preferable. This may well be the case, and it purely comes down to an individuals’ personal financial situation.


You get an idea of roughly how much your monthly repayments will be by using our loan calculator. Of course, this will depend on the specific APR offered by your matched lender, but it helps our customers budget.

Investigate Options

Crucially, don’t get caught up in simply choosing the lowest monthly repayment term, as you may be leaving your disposable income (income minus expenditure) a bit tight each month.

By all means though, take a close look at your finances, and use our calculator to work out whether an 18 month loan is the right choice for you.


Once a lender has established that your application is successful, the final thing they do is use their acceptance criteria to offer you an APR (annual percentage rate).

This is effectively how much, in addition to the overall 18 month loan amount that you will repay.

Risk Score

This forms a lender’s “risk score” of a customer, which determines the APR offered. The higher the APR, the more you repay, as it is used to protect the lender in case of non-repayment.

Get a Yes

In cases of relatively high APRs, it is important to remember that many other lenders would simply say no. So again, it’s all about risk and financial analysis. It is used to protect both lender and customer alike.

Responsible Lending

Responsible lending is a set of guidelines set out by the lenders’ governing body, the FCA (Financial Conduct Authority).

This is a government organisation that works tirelessly to protect customers, and ensure that all lenders lend responsibly, and within the customer’s interests.

Customer Protection

The rules of responsible lending declare that all loans, including 18 month loans, are offered only if a lender is confident that the customer has a high chance of affording the loan. If a lender suspects that offering a loan will cause a customer financial hardship by taking on, or if a customer is vulnerable, then they must not offer a loan.


When considering 18 month loans specifically, there are two main things for you to consider. 1) the monthly repayments, and 2) the overall amount repaid.

We’re All Different

These points are largely affected by the loan term (number of monthly repayments), and APR.

Fallback Options

One person’s budget might dictate that borrowing over 18 months is preferable to say 24 months, as they can squeeze their budget. Fallback options may be in place if income changes, in order to clear the debt quicker.

What Suits You?

Another person’s finances might not afford a fallback option. Therefore to negate the risk of borrowing over a shorter period of time, they are happy to repay more overall, by borrowing for longer.


Loan terms are available from 3 months, 18 months, right up to 60 months through Moolr. Finding the loan is the simple bit! Our technology allows you to search the market for free, with no obligation to commit to the 18 month loan we find.

Income and Expenditure

However, before you decide, we encourage you to run through your income and expenditure. You can then work out what range of repayments you could comortably afford. This will then enable you to decide whether an 18 month loan is suitable.

Best Chance

By doing this, you will be giving yourself the very best chance of repaying the loan. This will then help improve your credit score. Doing so will give a good chance of finding lower APRs on future loans.

For further help with budgeting help, why not read our money saving tip blog?

18 month loans give us a bit more time to repay, and keep monthly costs lower