Six months is a common middle ground: short enough to keep the interest down, long enough to make each payment manageable on a modest income. This page shows what six months costs at different amounts, who the term suits, and the protections that apply if your loan is high-cost short-term credit. Dot Dot Loans is a credit broker, not a lender, and the lender sets your rate.
What 6 months costs at different amounts
At the representative rate, the interest over six months comes to roughly a fifth of the amount borrowed, whatever the amount. Your actual rate depends on the lender and your circumstances and may be higher, in which case the interest share will be higher too.
Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. 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.
How often people choose 6 months
Three and six months together account for almost half of all applications. Very few people chose 9 months, and 24 months was almost as popular as 6.
Who a 6 month term suits
Fitting six payments around your pay
With only six payments, each one is large, so timing matters. Ask for the payment date to fall a day or two after you are paid. If you are paid weekly or every four weeks, check which months have the longest gap between paydays and make sure the payment still fits in those months.
If your payday changes during the loan, tell the lender before the next payment is due. Some lenders will move the date for you.
Protections on high-cost short-term credit
If your 6 month loan has an APR of 100% or more, it is high-cost short-term credit, and these protections apply:
- Interest and fees are capped at 0.8% a day of the amount you still owe.
- Default fees are capped at £15.
- You will never repay more in interest and charges than the amount you borrowed.
- The lender cannot roll the loan over more than twice.
- The lender can make no more than two unsuccessful attempts to take a payment by continuous payment authority, and cannot use it to take part-payments.
- 12 month loans: how a year-long term compares
- Short term loans: how loans of 3 to 12 months work
- £500 loans: the most common amount, across every term