UNSECURED LOANS

What is an Unsecured loan?

An unsecured loan is another way of saying a personal loan – IE it is not a business loan or a homeowner loan. That is the loan is not secured against a property or another asset such as a car – so you do not risk your home if you do not keep up payments. So despite the name ‘unsecured loan’ is actually a less risky loan for an individual. That is not to say that there is no risk – it is of course important that you keep up payments if you take out a loan as you may build up further debts and it will also affect your credit rating. However as the loan is not secured on a house or other asset, the loan will have a higher APR than a homeowner loan and you will be able to borrow less than a secured loan, though you can still get up to £25,000 with some lenders. You can generally choose the term of your loan for repayments, the maximum term is usually 7-10 years.

Can I Apply for a Personal Loan / Unsecured Loan online?

Any individual can apply for a personal loan / unsecured loan online – you fill in a loan application form, and then wait for the bank / lender to contact you. You will often get a quick decision on your loan. The other advantage of using a website to apply for your loan is that many will have a loan calculator that allows you to estimate your likely APR interest rate and what your monthly repayments will be.

Can I get a Personal Loan / Unsecured Loan with Bad Credit?

Some people may have a poor credit history – due to getting into credit card debts, not paying bills on time etc they may even have had county court judgments against them. Having adverse credit can make it harder to get a loan, but there are plenty of loan companies who specialise in offering loans to those with bad credit, It is likely that the APR rate will be higher, as the bank / loan lender will see such an individual as a more risky proposition.

What Can I use my Personal Loan / Unsecured Loan for?

You can use your personal / unsecured loan for any reason you wish – you can use the loan for a holiday, to buy a new car, to fund home improvements or use the loan to pay for those important life moments such as a wedding or funeral. You can even get a loan to pay for cosmetic surgery!

Compare Personal Loans / Unsecured Loans

Your first step to getting a loan could be to view our comparison table – you will be able to compare variable APR rates and if the loan company suit your credit history. You can apply online for the loan and view loans from Halifax, the Bank of Scotland, Yes Loans and more.