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What are unsecured loans?

An unsecured loan is a sum of money you borrow from a financial institution to fund your big expenses. Also popular as personal loans in the UK, these loans do not require you to put collateral regardless of your credit rating. It means you do not need to fear of losing a valuable asset in case you fall behind repayments.

Unsecured Loans

You will pay back the borrowed sum with interest in fixed monthly instalments over a set period. To qualify for unsecured loans, you will need the following things:

What are the pros and cons of unsecured loans?

There are two sides to every coin. Likewise, unsecured personal loans have their benefits and drawbacks. You mustn't throw caution to the wind while applying for these loans.

Pros

  • They are not backed by security, so there is no risk of losing your asset.
  • They come with fixed interest rates, so you know how much money you are to pay every month. You can easily prepare a budget accordingly.
  • APRs are lower than other short-term loans like payday loans, bad credit loans, unemployed loans etc.

Cons

  • APRs are competitive, yet they are higher than those of secured personal loans.
  • If you make a default, you will end up with a CCJ (County Court Judgment)
  • Monthly payments can be larger.

Why should we apply for unsecured loans?

Before you borrow money, you must analyse that the type of loan suits your financial condition and needs. Unsecured loans in the UK can help you find those expenses that you cannot pay upfront. Here are the top reasons why you will likely need these loans:

How can I get unsecured loans?

Qualifying for unsecured loans is far more comfortable now. You know very well that you need to fill up the online application form, but there are a couple of other things to do as well:

Note: Regardless of your credit history, the maximum amount you can borrow is £50,000. Quick Loans Lender offers unsecured loans at lower interest rates than the market.

What is the difference between unsecured and secured loans?

Deciding on a secured loan and unsecured loan is not easy at all. The former is subject to losing your asset in case of a default, and the latter is subject to higher interest rates than secured loans. It seems like you are stuck between the devil and the deep blue sea. Now it does not need to be confusing at all because here you will get a detailed insight into it to make a better decision.

Secured Loans

  • They are subject to collateral.
  • Interest rates are lower, but there is a risk of losing asset in case of a default.
  • You can borrow a large sum of money depending on the value of the security you turn in.
  • These loans offer a longer repayment term, and hence the total cost of the loan can be a bit higher.

Unsecured Loans

  • You do not put security to take out these loans
  • Interest rates are slightly higher, but there is nothing to worry about.
  • You cannot borrow a large amount, yet Quick Loans Lender will allow you to borrow as maximum as £50,000 subject to your affordability.
  • They relatively come with a shorter repayment term, and hence, you do not end up paying huge amount in total.

Can I apply for a joint unsecured loan?

Yes, but remember that your co-applicant must have a good credit history too. In case one of you has a poor credit report, make sure that you have a have income to offset.

Some lenders do offer unsecured joint loans for bad credit but remember that they can be a bit expensive. You can qualify for these loans at Quick Loans Lender too, and we assure you that you will get them at lower interest rates than the market rate.

What are the alternatives for unsecured loans?

There are some circumstances when you may fail to qualify for unsecured loans, but you can consider the following alternatives:

Can I get unsecured loans if I have bad credit and no guarantor?

Yes, you can apply for unsecured loans for bad credit, but interest rates will slightly be higher than those for good credit rating. However, you can still get competitive interest rates based on your timely recent repayments.

To qualify for these loans with no guarantor, you will have to meet the following condition:

Why are unsecured loans suitable for business funding?

Unsecured loans are an ideal option to fund your business expenses. Some of the most common purposes why people take out these loans are:

Unsecured business loans can help you take out a large amount of money for your business without putting in security.

You do not need to submit a business progress plan for coming years, unlike in case of a business loan.

You can qualify for the loan even if you are a start-up.

Why customer like our services for these loans

Here is why our customers like our services:

  • Our interest rates are lower than the market even for bad credit borrowers
  • We are flexible with individuals’ circumstances.
  • We do not charge a prepayment penalty.
Our Customers Like Our Loans Services

faqs

How can an unsecured personal loan help you?

Unsecured personal loans can make your plans a reality. The most common reasons why people take out these loans are:

  • Buying a car
  • Home improvement
  • For a special day

How Quick Loans Lender check affordability?

It is paramount for us to check your affordability, but as we know that you would not like to have your credit score plummeted, we run a soft credit check. It will not leave hard search footprints on your credit report. We will also check your income statement to ensure that you can afford to repay what you are borrowing.

Is there a 7 to 10 year unsecured personal loan?

Yes, the term of the loan can extend up to 7 to 10 years. Sometimes, it can go up to 15 years. These loans are known as long-term personal loans. Note that you may have to secure them against an asset.

What is the best rate for an unsecured personal loan?

Every lender charges different interest rates, and therefore you cannot assume that any specific rate is the best. To avail yourself of the lowest interest rates, you must have a good credit rating and strong financial condition.

What is the minimum credit score for an unsecured personal loan?

Your score must be at least 721. However, in case of a bad credit rating, it should not be less than 580.

Will my credit score increase if I pay off the unsecured personal loan on time?

Yes, personal loans are repaid over a specific period, for instance, one, two, and five years. If you make all repayments on time, it will prove that you managed to settle the whole of your debt despite changes in your financial condition with time. As a result, your credit score will go up.

What will happen if I pay off the unsecured loan early?

If you settle your debt early, Quick Loans Lender will not charge early repayment penalties. However, some lenders charge such fees to recoup the money they lose when you pay off the debt before time. Therefore, make sure that you read all terms and conditions in the contract.