Unsecured loans have no strings attached. You don’t have to secure the loan against any personal assets e.g. your house or your car. Unsecured loans generally have higher interest rates than secured loans. This is due to the fact an unsecured personal loan is a higher risk for the lender. However, what you qualify for and what rate you are offered will depend on your circumstances and credit rating.
Some people are unable to provide personal assets as collateral. Unsecured Personal loans are suitable when a borrower needs a certain amount of cash, for a certain amount of time. Unsecured Personal Loans usually come with fixed interest rates making budgeting and repaying simple, however you should always check whether the interest rate is fixed or variable before agreeing to go ahead.
Monthly income and outgoings are assessed before deciding if the borrower can afford to pay the monthly Loan repayments back. A credit check will be performed on the person applying. This helps the lender decide whether to lend to the individual or not.
Unsecured Lending Limits
If the loan is not protected by a guarantor or collateralised, you can generally borrow in the region of £500 – £25,000. Risk to a lender would be too great to offer amounts greater than this.
Unsecured lending rates are generally higher than that of a secured loan as the lender is taking a far greater risk when giving an unsecured loan.
Fast unsecured loans for bad credit are available. Although a good credit history has a significant impact when applying for an unsecured loan. Employment and/or a regular income, reassures lenders that you have enough income to afford the repayments. Lenders need to be sure that you can repay your loan and that you won’t struggle to finance your other obligations such as mortgage or rent and household bills.
Personal stability presented by a fixed address also gives lenders reassurance knowing they will be able to contact you.
Short term loan interest rates are higher but with a shorter repayment time period. The overall interest you will pay may be lower than what you would pay with long term financing. Once and if a creditor accepts, Monevo’s technology forwards you to the lender so you can finalise your loan.
Monevo and Wefindanyloan.com recommend to seek out as much information and advice before taking out any type of loan. Here’s a couple of sites to help you along the way: