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.
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:
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 | Cons |
|---|---|
| They are not backed by security, so there is no risk of losing your asset. | APRs are competitive, yet they are higher than those of secured personal loans. |
| 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. | If you make a default, you will end up with a CCJ (County Court Judgment) |
| APRs are lower than other short-term loans like payday loans, bad credit loans, unemployed loans etc. | Monthly payments can be larger. |
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:
Debt consolidation
If you are struggling to pay off multiple debts on time, you can consolidate them into one outstanding loan. Take out an unsecured loan and use it to pay off all your current debts. Then, you will be left with one large loan that you will pay off in fixed monthly instalments. Unsecured debt consolidation loans can help you get rid of high-interest debts.
Gadget purchase
When household appliances conk out, your routine gets hindered very severely, and tension mounts up when you do not have savings to dip into. Whether your washer is broken down or your dryer is not up and running, unsecured loans can help you tide over.
Pet expenses
If you are fond of pets, you will naturally have to meet expenses like vet visits, grooming, and the like. If your savings have fallen short, personal loans can be an ideal solution to meet all pet-related costs.
Medical expenses
Medical bills can pop up anytime. If you do not have enough savings to pay them down outright, unsecured loans can be an ideal choice.
Business expenses
Whether you have a start-up or an established business, you may need funds for various business expenses like marketing, payroll etc. Unsecured loans will allow you to borrow a large amount of money for your business without any obligation like collateral and guarantor.
Household expenses
Whether electricity bill has gone up or you need money to buy gifts for your loved ones, unsecured loans are always your ally. Do not fight shy of applying for these loans if you need money to fund your household expenses.
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. Quickloanslender offers unsecured loans at lower interest rates than the market.
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 | Unsecured Loans |
|---|---|
| They are subject to collateral. | You do not put security to take out these loans |
| Interest rates are lower, but there is a risk of losing asset in case of a default. | Interest rates are slightly higher, but there is nothing to worry about. |
| You can borrow a large sum of money depending on the value of the security you turn in. | You cannot borrow a large amount, yet Quickloanslender will allow you to borrow as maximum as £50,000 subject to your affordability. |
| These loans offer a longer repayment term, and hence the total cost of the loan can be a bit higher. | They relatively come with a shorter repayment term, and hence, you do not end up paying huge amount in total. |
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 Quickloanslender too, and we assure you that you will get them at lower interest rates than the market rate.
There are some circumstances when you may fail to qualify for unsecured loans, but you can consider the following alternatives:
Business loans
If you need money to fund your business expenditure, you can consider taking out a small business loan. You will have to prove consistency in your revenues. Business loans are of two types: secured and unsecured.
Of course, you do not need to put security if you are borrowing a small amount. Unsecured business loans are generally aimed at start-ups. You will have to submit a plan of how you are going to survive in next two to three years.
If your lender has turned down your application due to bad credit rating, you can think of applying for bad credit loans. These are specifically aimed at poor credit borrowers. If you make repayments on time, your credit score will go up.
Credit card
If your card has a good credit limit, you can make a purchasing using it. Further, you will not have to pay interest if you pay off within the interest-free period.
Salary advance loans
When you withdraw your salary in advance from your employer, it is called salary advance loans. The best part of these loans is you do not have to pay interest. However, you will likely pay some fees if the service is offered by a third party.
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:
Financial needs and desires come in different forms and lengths. If one person has a small financial need, then another may have a longer financial purpose to achieve. Our company wants to contribute to both scenarios. Therefore, we offer more than only short-term unsecured loans.
Other direct lenders in the UK usually offer small unsecured loans to the applicants. They may worry about the risks involved in lending a substantial amount. On the other hand, we are ready to take that risk and offer long-term unsecured loan as well.
You can use these loans for more significant purchases like home buying, mortgages, new car purchases, etc. You can utilise such long term loans to fill the funding gap that occurred during those extensive expenses.
With us, you will get the following features on these loans with unsecured nature.
| Features | Short-Term Unsecured Loans | Long-Term Unsecured Loans |
|---|---|---|
| Loan Amount | Borrow up to £10000 | Borrow Up to £50000 |
| Loan Term | 12 - 36 Months | 36 - 84 Months |
| Loan Repayment Modes | Weekly or Monthly | Monthly |
| Ideal Loan Purposes | Financial emergencies or small expenses | Larger financial goals or purchases |
| Guarantor | Not Required | Required |
| Income Status | Full-time or Part-time Monthly Income | Full-Time Income |
| Credit Score | Loans for Any Credit Score | Good Credit is preferred, but Bad credit people can also apply |
When you are running a small business or have just located a start-up business, you may require external funding support at some point in time. Still, you hesitate to put anything as loan collateral, as your returns are not yet fixed. As an alternative, you can approach our company to get unsecured loans with bad credit and to fulfil your business needs from today itself.
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. However, you may not get the large amount you get after placing the collateral. Still, these loans are enough to manage emergencies without any hassle.
Below are some of the advantages that we bring with such small business loans:-
There is no need to sacrifice with your business needs. Instead, make the full use of our personalised support and grow your business.
For the last few years, QuickLoansLender has become one of the most preferred to get unsecured loans from direct lenders for the last few years. The primary reason is that we always focus on reviving the whole financial status of our applicants. Providing loans only is not our motive; instead, we give you complete financial support.
It is why we have been able to serve the financial purposes of many people.
Here is why our customers like our services:
Do you want to test our financial assistance? You are welcome to do so. Apply for unsecured loans once, and you will surely receive what you have expected from us.
