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.
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:
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.
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.
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 bills can pop up anytime. If you do not have enough savings to pay them down outright, unsecured loans can be an ideal choice.
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.
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. Quick Loans Lender 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.
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.
There are some circumstances when you may fail to qualify for unsecured loans, but you can consider the following alternatives:
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.
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.
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:
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.
Here is why our customers like our services:
Unsecured personal loans can make your plans a reality. The most common reasons why people take out these loans are:
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.
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.
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.
Your score must be at least 721. However, in case of a bad credit rating, it should not be less than 580.
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.
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.