How to Apply for a Loan: A Step by Step Guide

How to apply for a loan

Applying for a personal loan online is quicker than most people expect. Here is the whole journey, from a free soft search quote that won't affect your score, through to the money reaching your account. A hard credit search is only carried out when you formally apply to a lender which can affect your credit score.

Written by the Dot Dot Loans editorial team and reviewed by Paul Gillooly

Director, Dot Dot Loans

5 min read Last reviewed July 2026

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Soft search · won't affect your credit score

A hard credit search is only carried out when you formally apply to a lender which can affect your credit score.

Representative APR 79.5% (Variable). Rates from 12.9% APR to 1721% APR.

How to apply, step by step

The whole process is designed to be simple. You start with a no obligation quote, we search our panel for a potential match, and you only complete a full application if you are happy to go ahead. Here are the five steps.

Choose your amount and term

Decide how much you need and over how long. You can look at borrowing £100 to £5,000 across 3 to 36 months.

Get a free quote with a soft search

Fill in one short form. We check a panel of FCA authorised lenders and brokers using a soft search, so it has no impact on your credit score.

Compare what you are matched with

If a lender can help, you will see an indicative offer. Check the monthly repayment and the total cost over the whole term, not just the headline figure.

Complete the lender's application

If you choose to proceed, you apply to the lender directly. At this point the lender runs a hard search and its own affordability checks.

Get your funds

Once you are approved and your credit agreement is signed, many lenders pay out the same day using Faster Payments.

Soft search

Getting a quote

Happens when you check your eligibility with us.

Only you can see it on your file

No effect on your credit score

Check as often as you like

Hard search

When you apply

Happens only when you formally apply to a lender.

Other lenders can see it on your file

Can lower your score for a short time

Several at once can put lenders off

What you need before you start

You do not need much to get a quote, but having these details to hand makes the form faster and helps the lender complete its checks:

Proof of identity, such as a passport or driving licence
Your current address and how long you have lived there
Your monthly income and your regular outgoings
Your UK bank account and debit card details
Your National Insurance number, if the lender asks for it

For a fuller breakdown, read our guide on what you need to apply for a loan.

How long does it take?

Applying online is fast. The quote itself takes a couple of minutes, and many lenders return a decision quickly, though exact timings depend on the lender and your own bank.

2 min

To get a quote

One short form, with a soft search

Minutes

For a decision

Many lenders reply quickly

Same day

Common payout

Once approved, via Faster Payments

What happens after you apply

Once you submit a full application to a lender, a few things happen in the background before the money arrives:

The lender runs its own affordability and credit checks, which include a hard search
If approved, you receive a credit agreement to read and sign
Once the agreement is signed, the funds are sent to your bank account
If you are not approved, it is not recorded as a decline on your file, though the hard search itself is recorded

Tips for a smooth application

A few simple habits give you the best chance of a quick, clean decision:

Use a soft search quote first, so you avoid several hard searches close together
Enter your details accurately, matching your bank and official documents
Only apply for what you comfortably need and are confident you can repay
Make sure you are on the electoral roll at your current address

If money is tight, free and impartial help is available from MoneyHelper. It is always worth checking whether a lower cost option is open to you before you borrow.

Representative Example: £1,000 borrowed for 18 months. 17 monthly repayments at £87.22, final repayment of £87.70. Total amount repayable £1,570.44. Interest total £570.44. Annual interest rate 59.97% (fixed). Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.

Frequently asked questions

Does applying for a loan affect my credit score?

Checking your eligibility with us uses a soft search, which does not affect your credit score and is only visible to you. A hard search is only carried out by a lender if you choose to proceed with a formal application.

How long does it take to get the money?

Many lenders can give an indicative decision within minutes, and once you are approved and your agreement is signed, a number of lenders pay out the same day using Faster Payments. The exact timing depends on the lender and your bank.

Can I apply if I am self employed or on benefits?

Yes. Lenders consider income from self employment and, in some cases, from benefits, as part of their affordability assessment. What matters most is that the repayments are genuinely affordable for you.

What can I use a personal loan for?

A personal loan can be used for most everyday purposes, such as an unexpected bill, a car repair or spreading the cost of a larger purchase. It should not be used for anything unlawful, and it is worth being sure the repayments fit your budget first.

Is approval guaranteed if I am matched?

No. We are a credit broker, not a lender, and being matched is not a guarantee. The lender always makes the final decision after its own checks. Be cautious of anyone promising guaranteed approval.