What is an unsecured personal loan?
An unsecured personal loan is one where you don’t have any security or collateral to cover it if you fail to make the payments.
Do I have to own my own home to get an unsecured loan?
No, you can be a homeowner but these are generally for tenants or those renting their accommodation.
Will I get the lowest rate available on an unsecured loan?
If your loan is an unsecured one, chances are that to cover the additional risk involved for the lender will mean that the interest rate will be less competitive than a secured loan.
Will my unsecured loan application be quicker than a secure one?
Generally speaking yes, as there are normally less formalities like checking the value the value of your home as part of the security, so applications for unsecured personal loans are normally processed quicker.
Will I get an instant decision for my unsecured loan?
No! But decisions are normally made very quickly.
Is there a way I can make my monthly payments cheaper with an unsecured loan?
Yes, but this will probably mean repaying the loan over a longer period of time, meaning that your total repayments will be higher than if you paid the loan over a shorter period of time.
So it does not matter if I don’t pay back my personal unsecured loan ?
Definitely not, you will still be liable to make all the repayments. Failure to repay any loan (even a personally unsecured loan) will probably mean that your credit rating will be affected and could affect the chances of you borrowing money in the future.
Would that mean receiving a county court judgment?
Possibly yes, if you default on your payments, you could have court proceedings taken out which may affect your future credit rating.
What is cheaper, secured loans or unsecured loans?
Secured loans are always cheaper than unsecured loans but that is because you will normally have to put your house up as security.
How is a secured car loan different from an unsecured car loan?
Car Loans can either be secured or unsecured. Secured Car Loans have property set against them as security for the amount borrowed. The interest rate on home owner loans is lower than unsecured loans.
How much amount can I borrow?
Car Loans are available in varying amounts and the amount borrowed usually varies from £500 upwards.
What is the repayment term for car loans?
The amount borrowed is generally repayable over a period of between 6 months and 10 years.
How can I apply for a car loan?
You can apply for a Car Loan either in person or via a written application, over the phone, or on-line. Assessments can be made very quickly. Income and financial commitment details are collated together to assess whether or not you can afford to take on the Car Loan.
How can my loan payments be protected?
Car Loans are governed by the Consumer Credit Act. The Act covers loans up to a value of £25,000. You need to sign a credit agreement when taking out a Car Loan.
You can take insurance policies or payment protection schemes to protect yourself in the event of accident, illness or redundancy. The terms are different for various lenders.