Unsecured loans are available from £1000 to £25000. Employed or self employed, applicants need a good credit
history and the loan can be completed within 48 hours.
Generally, you should have a good credit history in order to be accepted, however it is not impossible to get an unsecured bad credit loan.
On receiving your application the adviser will advise you on the best course of action, having searched the market to find the unsecured loan company offering the best rate for your personal circumstances. Most lenders will accept both employed and self employed applicants.
Please click here to read about credit scoring and credit history.
Please click here to read about the different types of loans available.
This type of loan does not require the borrower to secure the debt against an asset, usually a property. Because you are not using your home to guarantee repayment of the loan, the loan company will take out extra insurance to cover any money lost should you default on your payments. Lenders pass on the cost of this insurance by increasing the interest rate of the loan, which is why you tend to find that unsecured loans have a higher APR than secured loans.
Most unsecured loans are limited to £25,000 because the Consumer Credit Act (1974) regulates lending up to this figure, as a result this tends to be the maximum that most lenders will lend without security. If you want to borrow more than this, then it is highly likely that you will need to secure the loan. Securing the loan is not as onerous as it may first appear because if you default on an unsecured loan then the lender may still try to take possession of your home in order to repay the debt.
If you are looking for an unsecured bad credit loan, this may be available if you can prove to the lender that you have sufficient equity in your home in order to cover the loan. You can usually apply to borrow anything from £1000 to £25,000.
Most (but not all) lenders give you the option of paying the loan back within between six months and ten years. It's your decision how much or how little time you need to pay back the loan in full but you should try not to stretch yourself too much as the last thing you want is to default on repayments. Despite this, try to pay back enough each month so that the loan doesn't drag on for years and years, as this will mean you are paying back more interest, and therefore the loan will ultimately cost you more.