UK Personal Loans - Secured, Unsecured, or Bad Credit

Welcome to 'UK Personal Loans' - your online guide to personal loans whether secured, unsecured, or with bad credit.

There are so many different personal loans on the market today that it is sometimes difficult to know which one to choose. To help you decide which loan is best for you, there are lots of things to consider but the main thing you should ask yourself is, 'what do I need this loan for?'.

Are you paying off existing debt? Do you need the money for home improvements? Or is the loan going to pay for a one-off expense, like a new car, a family holiday, or maybe a wedding?

The amount you want to borrow is also an important factor, as is the amount of time you need to pay the loan back. Your current personal circumstances may also help you to narrow down your search, in particular whether you are a homeowner or not. Other aspects that might affect your application (certainly areas any reputable lender will be checking before lending you any money) are your credit history, whether you have any CCJs (County Court Judgments) and whether you are unemployed or self-employed.

Taking out a personal loan means that you can use the money that you borrow for any purpose. You might want to use it to consolidate debt, to make home improvements or to treat yourself to a holiday or new car, or even to help pay for a one off event like a wedding.

Despite the growing number of money lenders around, there are really only two types of loans on the market: secured and unsecured.

Secured loans

A secured loan, sometimes referred to as a homeowner loan, is only available to homeowners, and means that the loan is secured against the value of the property. Because these loans pose less of a risk to lenders, as a rule secured loans are offered at far better rates than other types of loans. They also tend to be much easier to obtain, as the lender knows the repayments will be met, and so can be a desirable option for homeowners with a poor credit history or county court judgements, or anyone that has previously struggled to have a loan application approved.

Unsecured loans

An unsecured loan means that you are not securing the value of the loan against your property. This means that the lender is at a much greater risk of losing his money back should you file for bankruptcy and therefore rates reflect this risk by tending to be relatively high in interest.

 

 

 

 

 

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