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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
If you are looking for a quick loan that you can rely on when things suddenly turn to worse money wise, unsecured loans are financial options that you can consider. These types of funding do not require you to put up any form of an asset as collateral making them easier to obtain and less risky in your part. They can also be obtained online from various reputable sources like Pickaloan in the very comfort of their own home making a convenient solution to a pressing financial needs.
What is an unsecured loan?
An unsecured loan is a type of cash loan that does not require the borrower to add anything as security. You simply borrow from the lender and pay it back over an agreed amount of time. You can take out as much as £25,000 with unsecured personal loans and sometimes bigger depending on the lender which you will have to pay out from one to eight years.
The total amount of costs that you will have to cover with an unsecured loan will depend on how a lender gauges the level of risk associated in lending you the money that you requested. Some of the things that lenders will look into include:
- The amount of money that you want to obtain
- How long you can pay back the loan
- Your credit standing
- Your present income
Types of unsecured loans
Aside from being free from any form of collateral, there are also various unsecured loans that you can look into that will cater your personal financial needs. Some of the options readily available from renowned introducer Pickaloan include:
- Unsecured Personal Loans - Lets you borrow money in lump sums and pay them back over an agreed period of time.
- Guarantor Loans - Requires a family or close friend who will act as a guarantor in behalf of your loan. The guarantor will agree to make the payment responsibilities once you decide to default on them.
- Door Step Loans - A convenient type of funding that allows you to obtain a short-term loan right at your doorsteps from a friendly local agent.
Unsecured Personal Loans
Once you default on a mortgage loan, the bank has the legal right to gain ownership of your home to recoup part of the money that they have lost. With unsecured personal loans, however, the only thing that you put on the table is your own reputation. There are two distinct advantages that you will normally enjoy when you consider unsecured personal loans and they are:
1. No Risk on Your Property
Personal loans can be secured and unsecured. With unsecured personal loans, you do not risk losing any of your property in the event that you default on your payments since there is no collateral involved with your deal. This gives you that much-needed peace of mind knowing that you are not risking losing your home in the event that making on-time payments suddenly becomes challenging or impossible.
2. Easy and Convenient Application
Because there is no shortage of reliable lenders in the industry today, the process of obtaining an unsecured personal loan is relatively easy and straightforward. As a matter of fact, you can even make an application online and get approved in a matter of minutes. There is no paperwork involved and no falling in long lines like you would normally do with banks and other traditional financing institutions. As long as you meet the basic qualifications, taking out these loans is genuinely easy and convenient.
Unsecured Loans for Bad Credit
If you are in arrears with a credit card or loan and have been late or missed with your parents, chances are you will have bad credit. It's not something to be completely discouraged, however, as an estimated 1 in 5 people in the UK has bad credit. It can really happen to anyone and when you have a bad credit, banks and other lenders will normally turn down your request for an unsecured loan.
If you have a bad credit and your need for an unsecured loan is urgent, there are viable options that you can look into depending on your current situation. One of them is unsecured loans for bad credit which will give you the money that you need despite your discouraging credit standing.
Unsecured loans for bad credit will not require any form of security for the money that you intend to borrow. Borrowers who do not have their own home can rely on unsecured loans bad credit to satisfy their borrow ring needs although homeowners who do not want to risk their homes can also apply for them.
Important Thing to Note with Unsecured Loans Bad Credit
Because you are not required to put in a collateral despite your poor credit standing with unsecured loans for bad credit, the lender will normally levy the high risk involved in higher interest rates. And although the lender may not have any claim to some form of asset, when loan repayments cannot be met, they may turn to alternative means of legal action to recover their losses.
The interest rate associated with unsecured loans bad credit will be entirely dependent on the borrower's personal financial circumstances which means interest rates will vary from one borrower to the next. The amount that you intend to borrow, your personal income, credit score, and financial situation will determine how much you will pay in interest.
An Opportunity for Building Credit
On the other hand, if you can make the proper repayments, unsecured loans for bad credit will serve as an opportunity for you to build your credit score back into good standing. It will give lenders the impression that you are no longer the same person who had problems in paying out his debts and this will reflect on your credit report.
Also, if you find yourself in an impossible spot and it would be really difficult for you to pay your unsecured loans bad credit on time, never hesitate to contact your lender so you can discuss the options of a more comfortable payment framework. Responsible lenders are always ready to help borrowers when they find themselves struggling to make the proper repayments.
- With unsecured loans, borrowers do not need to provide security before they are granted loans.
- With online applications, loan amounts are released as quickly as customers want.
- Customer's credit history do not play a role in determining whether an unsecured loan is approved.
Unsecured Loan FAQs
How long can I take an unsecured loan for?
Personal loans are a type of unsecured loan, so you don't need a guarantor or collateral such as an expensive property or a car. Repayments are made in fixed amounts usually within the space of two to five years. Longer loan duration is given to large loan amounts and vice versa.
How much money can I get?
Lenders can give customers with excellent credit ratings and high income up to 50000 pounds. To secure huge sums of money, your loan application must be strong and well founded. Our network of lenders will always check your financial situation and loan affordability before they approve your loan application.
Will an unsecured loan hurt my credit ratings?
These loans are not designed to harm your credit worthiness. If you play by the rules and you don't default on making payments, your credit score will not be affected and may likely increase. You will only run into financial difficulties if you begin to miss payment schedules consistently. Lenders are charged with the responsibility of reporting loan operations to credit agencies.
Will I get the best interest rate?
This is not written in stone because lenders tend to alter their loan interest rates just to stay competitive in the market. This means that you can find a lender with a favorable plan if compare several loans. But generally, unsecured loans tend to attract high interest rates because of the risk associated with them.
Will I be given the loan if I have poor credit?
Bad credit scores will greatly reduce your chances of getting a loan but it's not impossible. If you have a solid income and the lender verifies that you can afford to take the loan, you stand a good chance of being given the money you requested for. Some lenders know that a bad credit score does not paint a full the picture of a customer's current financial condition.
How do I apply?
With our online application system, you can kick-start your loan application within a matter of minutes right there in the comfort of your home or office. Once you have completed the online application form, submit it and wait for one of our representatives to contact you. This will only take a few minutes.
What happens when I default on the loan repayments?
If you miss a payment, it means that some extra charges will be added to the initial amount you were meant to pay back to the lender. This will also hurt your credit rating and lower your chances of getting more loans in the future. The only way to avoid this is to borrow the amount that you need and make repayments when you are supposed to do so.