An Unsecured Loan is also called a Personal Loan. It allows you to borrow money without having to provide a form of security against it, such as your home or your car. Your loan provider will make a decision on your eligibility dependant on your personal credit history, which is verified by a credit check.
Unsecured loans come in many different forms, with different loan amounts and repayment terms. The larger the loan than usually the longer you have to pay it back to your lender. The minimum loan amount is usually £1,000, but some lenders can offer amounts from £500 upwards.
If are a homeowner and need a loan of more than £25,000 , then perhaps you should consider a secured loan which usually offers a lower interest rate.
APR stands for Annual Percentage Rate, which your loan will be subject to. A good way to determine how competitive your loan really is, is to compare the APR over a number of different products. Lenders do quote interest rates in various ways, and it's worth familiarising yourself with these:
Fixed Interest Rate: This type of interest rate will stay the same throughout the term of the loan, regardless of any changes to the bank base rate. This means that your monthly repayments should always stay the same, allowing you to budget more easily.
Variable Interest Rate: This type of interest rate may rise and fall in line with any changes to the bank base rate. This could mean that your monthly repayments will change during the repayment term.
Typical Interest Rate: Lenders state this as an indication of the rate you will be offered. This is the rate that over 66% of successful applicants receive, but the exact interest rate will be dependent on the loan amount, repayment term and your personal circumstances.
Any additional costs, such as early settlement charges will be noted in the small print so it is always advisable to check these before you sign on the dotted line.
Need Credit will always try our best to find you an unsecured loan that can best suit your circumstances. To find out more, please call us on 0800 048 1774.Need Credit is a trading style of Ask Finance Ltd (Registered in England and Wales. Company number 4229724), a wholly owned company of the Harrington Brooks Group Ltd. Ask Finance Ltd is licensed under the 1974 Consumer Credit Act to carry on the business of consumer credit, consumer brokerage, debt adjusting and debt counselling. Consumer Credit License No: 507130. Ask Finance Ltd is authorised and regulated by the Financial Services Authority (FSA) - FSA No: 300490 - for the provision of mortgage advice and arranging insurance.