Unsecured personal loans are a type of borrowing where you do not need to put up any security in case you default on payments. They can be difficult to obtain for people who have been turned down repeatedly by banks and lending companies because of a bad credit history. However, there are a number of companies that specialize in bad credit UK loans, including bad credit unsecured loans.
If you are looking for an unsecured loan with bad credit you will find that specialist companies offer various options including products that are advertised as bad credit loans with no fees. Although this means that no additional fees will be levied you will still have to pay interest. However, a good unsecured loan company will be able to help you find the best deals on the market with the lowest Annual Percentage Rates (APR).
Bad credit unsecured loans present a higher risk to the lender as the company cannot seize your home or other assets in the event of non-payment. Furthermore, people in this situation may have defaulted on repayments in the past. For these reasons, lenders charge a higher rate of interest than with other types of loans, such as those that are secured against your property. An unsecured loan company may follow a set of criteria before agreeing to lend money in order to determine how much credit may be granted. This includes checking whether you are a homeowner and whether you are in employment. Another factor that may be considered is your credit history. Although these factors won’t necessarily bar you from borrowing through a specialist company, they may affect the level of APR as well as the amount you can borrow.
Once the lending company gets a clearer view of your financial situation this may increase your chances of getting a speedier approval. The amount that you can borrow will depend not only on your personal circumstances but also on the amount the company is willing to lend. This will typically be lower for people with a poor credit history and each lender applies its own limits. The repayment period will also vary according to the amount borrowed, and how much you can afford to repay each month. These types of credit applications can easily be made online. Many websites that offer unsecured credit will only need some basic information to get the process started. You can either apply by filling in a brief online form or by phoning an onscreen number and speaking to an adviser. Staffs are generally used to dealing with people from a wide range of financial backgrounds so they are well equipped to help you.
The sum of money that you borrow can be used for any purpose. For example, you may want to buy a new car, carry out a home improvement project or go on holiday. You may even want to use the sum of money to clear all your existing debts so that you can pay a single more affordable monthly amount instead. If this is the case then you may find that there are other debt solutions available that can help with your financial situation.