About Unsecured Loans

A loan described as an unsecured or personal loan, enables you to borrow money without having to provide security.

Unsecured loan providers don't require any collateral, making an unsecured loan (personal loan) ideal for people who rent their homes (tenant loans).

Unsecured loan providers will base their decision to lend, upon your personal credit history. This is verified by a credit check to determine your credit rating score. Learn more about your credit history by contacting one of the major Credit Reference Agencies.

When deciding between an unsecured loan or a secured loan it is worth remembering that, whilst unsecured loans are not tied to a house or property, penalties for non-repayment will still be incurred.

Unsecured Loans & Lenders

Unsecured Loans Lenders will want to see that you have sufficient repaying capacity, they will of course run a credit check (investigate your financial credibility) and will often want to see proof of income (pay slips) and in extreme cases they may even require a guarantor (some who will pay the loan repayments on your behalf if you fail to meet the agreement).

Some lenders will want to carry out a financial review, analysing your income and expenditure, ideally all loan applicants should have this sort of information prepared before applying for an Unsecured Loan. The only way of really finding out if you will be successful, is to seek the advice of an independent loan broker who will search the entire market for you and inform you of the best loans deals that meet your current and future financial needs.

A good credit history will of course boost an unsecured loan lenders confidence in your ability to repay the loan capital. Lenders usually approve an unsecured loan anywhere upto £7,500.00.

Unsecured Loans Questions:-

  • How quickly will I get a decision?
  • Will there be any charges if I repay the loan early?
  • Do my repayments change over the term of the loan?
  • What proof(s) of income do I need to provide?
  • Can I make extra repayments to my loan?
  • Is there an application fee?

Disadvantages of an Unsecured Loan

Unsecured Loans don’t require any security and are therefore heavily weighted on your individual financial credibility, therefore the risks are slightly higher for the loan lender; it is for this reason that Unsecured Loans do carry a mildly higher interest rate.

Unsecured Loans (Personal Loan) uses:-

  • Prevent IVA
  • Credit repair
  • Raising capital
  • Home improvement
  • Debt consolidation
  • Prevent bankruptcy
  • Starting a business
  • Solve credit problems
  • Pay off the store card
  • Pay off the credit card
  • Student loan requirements
  • Once in a lifetime holiday

The loan amount, the term available and the Annual Percentage Rate (APR) will depend on:-

  • The term of the loan
  • One credit history
  • Ones current income
  • Ones personal circumstances

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