What is an Unsecured Loan?
Unsecured personal loans have become quite popular due to the ease it provides while borrowing. These loans are collateral-free credit that borrowers take for a variety of personal or professional reasons. Unlike other sorts of loans, these loans aren't specific target credit — the borrower can use the loan for almost any purpose. These are paid in fixed payments on a regular basis until the loan term terminates.
Generally, unsecured loans are divided into two types – long-term loans and short-term loans. A borrower can choose a loan type depending upon their financial circumstances. Long-term loans have a repayment period of 84 months and short-term loans have to be repaid within 12 months or less. Choose a credit product that will suit your needs and affordability.
Bad Credit Unsecured Loans UK
A bad credit score is an indicator of your personal finance management. But, if you do not have a perfect credit score, you can still apply for unsecured loans for bad credit, at Loan Broker. Our lenders will carry out a credit check to evaluate your creditworthiness and basis on that they will make a decision.
What Are the Uses of an Unsecured Loan?
The lenders we are associated with offer unsecured personal loans in the UK that can be used for a variety of purposes. The borrower may use the loan amount to cover any emergency or to repay his prior debts. Such credits help to maintain the required flow of cash when you have unexpected expenses to bear.
Some uses of an unsecured loan are:
Debt Consolidation: If you have multiple small debts and you find it difficult to handle – use personal loan for debt consolidation and merge the bills and claims into one. This will help in easy repayment as you will be making only one repayment against all.
Home Improvement: As a homeowner, you must always take care of your home. If you need to make some urgent household repairs or want to upgrade the value of your house, you can use an unsecured home improvement loan to cover the costs.
Business Uses: You may use the funds to cover all the necessary business requirements and expenses that you find inescapable.
Benefits of Unsecured Loans
There are several benefits of an unsecured loan in the UK that includes:
Fast – These are much faster as compared to traditional and high-street lending that one opts for. The decision regarding the loan application doesn’t take much time – it only takes a few minutes.
No Collateral – You might be a homeowner and do not want to put your property at risk. Good news! Personal unsecured loans do not need any collateral.
Flexibility – Once you have taken a loan, you have the flexibility of repayment. It can be done in manageable monthly repayments.
Safe & Online – The process of applying for a loan is completely safe and online. That means you do not have to spend hours in the end for the application to be filled and processed.
Please note that repayment of any borrowed amount should be done on time, else this can have a negative impact on your credit profile.
FAQs on Unsecured Loans
Why should I choose Loan Broker?
Loan Broker UK can help you find various deals on unsecured loans from multiple lenders at affordable rates in the UK with a single application This will save your time in browsing multiple lenders’ website and filling up multiple forms. Do I have to be a homeowner to apply for an unsecured bad credit loan?
No. You can apply for an unsecured bad credit personal loan even if you are not a homeowner. This form of loan doesn’t require any collateral. Tenants can apply too.
Does it take longer to approve a bad credit unsecured loan?
Generally not. Whether you apply for a bad credit unsecured loan or not, it doesn’t take much time for the approval. Our lenders are quick in verifying and assessing the information to evaluate your loan eligibility. All this happens within a few minutes only.
Will I receive my loan in cash?
No. When you apply for an unsecured loan through a loan broker – the amount is disbursed to your bank account by the lender. You can withdraw the amount and use it in cash.
How do you assess what rate to charge on a loan?
When you apply with us, our lenders decide the rate of interest and that depends on several factors such as your income, expenses and credit score. Unsecured personal loans for bad credit will have a relatively high rate of interest because of the risks involved.
How does applying for a loan with you will not affect my credit score?
Our lenders offer initial quotes for a loan by conducting a soft credit check that doesn’t impact your credit score. Conquer Financial Freedom – With Loan Broker Loan Broker is an FCA registered personal loan broker that operates across all the major cities of the United Kingdom. The lenders we are connected with are also authorised by the FCA. You may avail a loan to renovate your property, repay your prior debts, or you may use the loan for any other obligation – there is no restriction on its usage. However, you must not use it for any illegal purpose.
Before applying for an unsecured loan, prepare the repayment plan and budget your expenses accordingly. If you fail to make repayments on time, your credit score may be severely damaged.
Our service is free of charge
We do not charge any upfront fees to our borrowers, even if they opt for unsecured bad credit loans. We believe in maintaining transparency to promote responsible lending. If you are interested in an unsecured loan, please do not hesitate to get in touch with Loan Broker. We are happy to answer any queries you may have. Our aim is to make the process of borrowing money simpler and faster – to help borrowers gain easy access to funds in times of trouble.