118118 Money

118118 Money is a direct lender: it lends its own money rather than acting as a broker, and you deal with it directly from application through to the end of your loan term¹. It sells two things: unsecured personal loans, which it markets heavily to people with a poor credit history, and a credit card. The brand sits behind the familiar 118 118 directory enquiries number, and it describes its purpose as filling "a hole in the lending market between bank loans and short-term loans"², meaning borrowing that is larger and longer than a payday loan but more accessible than a mainstream bank loan.

Its personal loans run from £1,000 to £8,000, repaid in fixed monthly instalments over terms the provider quotes as 12 to 60 months³. Because it is not a bank, money you hold with it is safeguarded rather than covered by the Financial Services Compensation Scheme's deposit protection, which matters if you keep a balance on its credit card: the details are in the protection section below.

What 118118 Money is, in brief

118118 Money was created, in its own words, to "fill a hole in the lending market between bank loans and short-term loans"². That positioning explains most of what it sells. A payday loan is typically small and repaid within weeks; a mainstream bank loan usually wants a clean credit record. 118118 Money sits in between: loan amounts of £1,000 to £8,000, terms of a year or more, fixed monthly repayments, and a willingness to consider applicants whose credit history is poor³.

It is a direct lender, not a broker. Its own pages repeat the point: "118 118 Money is a direct lender"¹¹, and "You deal with us directly throughout your application and loan term"¹². In practice this means the application, the credit checks, the decision and the repayments all happen with one firm, rather than your details being passed to a panel of lenders. Its permission is to enter into regulated credit agreements as lender, but that permission excludes high-cost short-term credit, bill of sale agreements and home collected credit agreements¹⁰, so its products are not payday loans under the rules that cap that market.

The firm behind the brand was incorporated on 7 February 2013 and its company status is active¹³. It offers no current accounts, savings, mortgages or insurance of its own: everything it sells is credit, and the two product types are covered in the sections below. If you are comparing lenders rather than just this one, the site's guide to loans sets out how personal loans work generally, and the lenders directory lists other firms in this market.

Personal loans: unsecured, fixed rate, repaid monthly

A 118118 Money personal loan is unsecured, meaning nothing is secured against what you borrow. Its own terms put it plainly: the loans are "of the unsecured variety, so no assets are secured against the amount we lend"³, and "you don't need to secure them against anything or have a requirement for a guarantor"¹⁴. That has two practical consequences: your home is not directly at risk from the loan itself, and you do not need to find someone else to guarantee the debt, which is what guarantor loans require.

Repayments are fixed and monthly. The provider describes its loans as having "Fixed monthly repayments"¹⁵, paid back "in monthly instalments"¹⁶, so the amount you pay each month does not move with interest rates during the loan. Its representative example, which appears across its loan pages, is 24 scheduled monthly payments of £123.64 with a total amount payable of £2,967.43³. A representative example is what the lender expects at least half of accepted applicants to get; your own offer depends on your circumstances, and the current figures are on its own site.

The loan range is quoted as £1,000 to £8,000 across most of its pages³, but some pages describe the range as £1,000 to £5,000⁵. Terms are similarly mixed: most pages say 12 to 60 months⁶, while others show 12 to 36 months. Treat the figures on 118118 Money's own loan pages as the current ones, and check what you are actually offered before signing.

The provider markets the same loan for many purposes, and you "may use the money however you wish"¹⁷. Its own pages advertise it for debt consolidation, home improvement, car repairs, holidays, moving house, emergencies and joint borrowing¹⁸. The product is the same unsecured loan in each case; only the marketing page changes. If you are weighing a loan against other ways to borrow, the guides to credit cards and to debt cover the alternatives.

Who can apply and what is checked

The eligibility rules are consistent across the provider's pages. To apply you must:

• be over 18 years of age¹⁷
• be a UK resident²⁴
• be employed or self-employed¹

Beyond those basics, "Credit is subject to status, affordability and credit checks. Terms and conditions apply"⁹. 118118 Money emphasises that it "carries out affordability checks because responsible lending matters"⁶, and says it is "a direct lender and looks beyond a single score, carrying out credit and affordability checks to understand" your situation¹⁸. In other words, a poor credit record does not rule you out on its own, but nor does it guarantee acceptance: "Every application is assessed individually"²⁵.

Self-employed applicants are considered on the same basis as employed ones¹, and the provider has pages aimed specifically at self-employed people and at people with bad credit²⁶. It also offers an eligibility checker, which lets you see whether you are likely to be accepted before making a full application²⁸. A full application leaves a mark on your credit file, so checking first can matter if your history is already weak; the guide to credit scores and credit reports explains how these checks work.

If you are refused, the door is not permanently closed. The provider states: "If your financial circumstances change, we welcome you to re-apply after 180 days"¹⁷. That is a firm rule rather than a vague invitation, so a rejection is worth treating as a six-month pause rather than a final answer.

How applying works, step by step

The application process is the same whatever the loan is for. You can apply online, or call 02920 548 118, which is available 24/7²⁹. The provider aims to give a decision quickly: "we'll always try to give you a decision within one hour"²⁴, and its team "processes applications and send funds seven days a week"¹⁷. Once approved, it quotes receiving funds in as little as 15 minutes, varying from 15 minutes to 2 hours depending on your bank⁹, and some of its pages say within 24 hours³⁰.

You will be asked for your full name, contact details, your address history for the past three years, and your income and outgoings³¹. One detail worth knowing: the provider guarantees to keep your loan offer valid for up to 5 days, which gives you a window in which to compare other offers without losing the one you have³¹.

The numbered steps in practice are:

1. Check your eligibility, using the provider's eligibility checker if you want an indication first²⁸.
2. Apply online or by phone with your details, address history, income and outgoings²⁹.
3. Wait for the decision, which the provider aims to give within one hour²⁴.
4. Set up your account, direct debit and sign the agreement³².
5. Receive your funds, typically within 15 minutes to 2 hours of the final step⁹.

The 118118 Money credit card

Alongside its loans, 118118 Money offers a credit card. Its pages show an amount of credit of £1,200 for the card⁴, and the card comes with a guaranteed credit limit, offered via an eligibility check before you apply³⁴. A guaranteed limit means the provider tells you the credit limit you would get before you commit to a full application, which removes one common uncertainty. The card also allows balance transfers: you can "transfer your existing credit card balance" to it³⁴.

The card is positioned as an alternative to payday loans, which is the same gap in the market the loans target⁴. As with any credit card, the cost depends on how you use it: paying the balance in full each month avoids interest on purchases, while carrying a balance accrues it, and the card's own terms set out the details. The site's guide to credit cards explains how cards, limits and repayments work generally, including what a balance transfer involves and what to check before moving debt from one card to another.

The provider runs a credit card eligibility checker, so you can see whether you are likely to be accepted and what limit you would be offered before applying³⁴. As with the loans, credit is subject to status, affordability and credit checks, and the card's current terms are on 118118 Money's own site.

Fees and charges, and how the cost is worked out

118118 Money's loan pages state "No arrangement fees"²⁹, so you do not pay an upfront fee to set up a loan. The cost of borrowing is instead built into the monthly repayments: because repayments are fixed, you pay the same amount each month for the life of the loan, and the representative example shows how the total works, with 24 scheduled monthly payments of £123.64 and a total amount payable of £2,967.43³. The difference between what you borrow and what you pay back is the charge for the credit, and the exact figures for any loan you are offered appear in the offer document before you sign.

The charges to watch are the ones that follow missed payments. If a direct debit fails or a payment is late, lenders typically apply late payment fees and the missed payment is recorded on your credit file, which can make future borrowing more expensive. 118118 Money's own terms, on its site, set out its current charges for late and missed payments, and those are the figures to rely on rather than any summary here. If you are struggling to pay, the provider says it offers "flexible repayment options tailored to your situation"³⁵, and its support page is the place to raise a payment that is at risk before a charge is applied.

For the credit card, the same principle applies: the card's terms set out its charges, including what happens if you miss a minimum payment or use the card abroad. Because the provider does not publish a single fee schedule on the pages here, check the current terms on its own site for today's figures before you borrow. The site's guide to consumer protection explains your rights if a lender charges you unfairly.

Managing your account: app, online and phone

118118 Money offers three ways to manage your borrowing: an app, its website, and the phone. Its app is called 118M8³⁶, and it is available for iOS and Android devices only³⁷. Through the app you can check your account, manage your loan and keep track of repayments; the provider promotes it as the way to handle your money with it day to day.

If you do not use a smartphone, everything is also available online, and the phone line on 02920 548 118 is available 24/7²⁹. That round-the-clock availability matters if you need to talk about your loan outside working hours, whether that is a question about an application or a problem with a repayment. Applications themselves are processed and funds sent seven days a week¹⁷, so the service is not limited to banking hours in the way a traditional branch-based lender is.

There are no branches: 118118 Money is an online and phone lender only. If in-person service matters to you, the banks directory lists banks and building societies that operate branches, though their lending criteria are typically stricter for people with damaged credit.

Help if you are struggling, and how to complain

If you cannot keep up with repayments, contact the lender directly first. 118118 Money has a page on supporting its customers and states it offers "flexible repayment options tailored to your situation"³⁵. Lenders are required to treat customers in financial difficulty fairly, which includes considering arrangements to repay over a different schedule. Free, independent debt advice is also available: the site's guide to debt sets out where to get it, including charity debt advice, and it costs nothing to talk through your options before you miss a payment.

To complain, start with 118118 Money itself, by phone on 02920 548 118, online or through the app²⁹. Set out what has gone wrong and what you want it to do. If the firm cannot resolve your complaint, or you are unhappy with its final answer, you can take the complaint to the Financial Ombudsman Service, which is free and independent and can look at complaints about firms that lend under consumer credit rules, which 118118 Money does¹⁰. The guide to consumer protection explains how the complaints process works and what the ombudsman can order.

How you are protected

118118 Money is not a bank, so the deposit protection most people know about, the Financial Services Compensation Scheme's cover of eligible deposits, does not apply to money you hold with it. Instead, the firm safeguards funds. Its own explanation is that it "has chosen to safeguard funds using the segregation method", with safeguarded funds "held in specially designated and labelled accounts with an authorised credit institution"³⁸, under "strict Safeguarding obligations and requirements under the Payment Service Regulations 2017"³⁸.

In practice, safeguarding means customer money is kept separate from the firm's own money, so it is not available to the firm's creditors if the business fails. It is not the same as FSCS protection: safeguarding aims to return your money if the firm collapses, but there is no automatic guarantee of the kind the FSCS gives bank depositors. The distinction matters most for anyone holding a positive balance on the 118118 Money credit card.

The brand's lender is on the FCA Register under firm reference number 741774, which you can check yourself¹⁰. Its permission covers entering into regulated credit agreements as lender, excluding high-cost short-term credit, bill of sale agreements and home collected credit agreements¹⁰. The company was incorporated on 7 February 2013 and its status is active¹³. As a lender under consumer credit rules it is also covered by the Financial Ombudsman Service for complaints, as described above.

Across England, Scotland, Wales and Northern Ireland

118118 Money lends across the UK, and its eligibility rules, loan range and application process are the same in England, Scotland, Wales and Northern Ireland: you must be over 18, a UK resident, and employed or self-employed¹. The phone number, 02920 548 118, is a Cardiff number, but it is available 24/7 wherever in the UK you are calling from²⁹. There are no branches anywhere, so nothing differs by nation in how you bank with it.

The rules that govern your loan are UK-wide too: the consumer credit rules, the complaints route through the Financial Ombudsman Service, and the safeguarding obligations under the Payment Service Regulations 2017 apply identically in all four nations³⁸. Where nation can matter is in the wider context of borrowing and debt: some debt solutions and enforcement rules differ between England and Wales on one side and Scotland and Northern Ireland on the other, and the guide to money in Scotland, Wales and Northern Ireland sets out those differences. The loan itself, though, is the same product with the same terms wherever in the UK you live.