Whether you are wanting a loan for a holiday or a loan for home repairs, personal loans are more than likely the answer you are waiting for. Typically, personal loans are in higher demand than most other loans due to their flexibility and large amount range.
What are personal loans?
A personal loan ranges from £1,000 to £35,000 giving you a range in amounts to cater for more people. The process works by paying a fixed amount every month. This is a fraction of your loan and the included interest so it is easier for you to repay as the months go on.
What do people use personal loans for?
They are unsecured, meaning you don’t have to secure it to anything important like a house. Therefore meaning you can pretty much spend it on anything you want. Although, we do suggest that you take careful consideration when deciding what you spend it on. As they can range to a very high, lifechanging amount, you should ensure that your purchases are definitely worth it.
Am I eligible?
One of the good things about these loans from lenders and brokers is that you can apply even if you have a bad credit score. Unlike the banks, most independent lenders offer loans to people who have a bad credit score as they believe that it doesn’t define you. They like to take into account your situation and other aspects instead of judging you on your credit score. But, this isn’t mean that it doesn’t play a part. Therefore, you should try your best to keep a high credit score.
What is the difference between an unsecured personal loan and a secured personal loan?
As you will know, personal loans are unsecured. But do you know what that means? Unsecured loans are usually borrowed from lenders and brokers over an agreement to repay. Whereas secured loans could be borrowed from a lender or broker but also be borrowed from the bank. They are secured to offer security for the lender in case you cannot pay it back.
Find out more about this here.
Maybe a loan isn’t the right thing for you and you believe you are able to save up your desired amount but need some extra help. Read our post on saving here.