What is an unsecured loan?
An unsecured loan is a loan that is available for both men and women ages 18 years and over. The lender usually charges a fixed fee per £10 to £100 borrowed from 12 months to usually 36 months. It is also common that the borrower in principles does not need security or collateral since it is an unsecured loan as the name implies.
Am I eligible to an unsecured loan?
Any person over 18 years of age, living in the UK (England, Scotland, Wales and Northern Ireland), in employment and receiving a regular salary paid into a valid bank account that accepts direct debits.
How do I apply for an unsecured loan in the UK?
Usually online these days although the opportunity to visit a local shop front is still available. If doing online applicants can apply 24 hours a day 7 days a week. Many of the lenders also work 7 days a week and can even deposit funds in your account during the weekend.
How do I pay back my unsecured loan?
Your repayment will be taken every month usually via direct debit until all paid off. The option to pay back the loan before the end date is also available but speak to your lender first to ensure what fees this may attract. I am struggling with bad credit record - can I still apply?
Absolutely, many of the lenders will consider applicants with less than perfect credit histories. When will I get my money?
The loan amount can be transferred to your bank account straight away. Usually it may be transferred in next working day. The time taken to deliver your funds can vary from lender to lender.
Is there any requirement of Paperwork or Faxing of Documents?
It depends on specific lenders as they require that you send them your past credit records of other documents.
I don't have a debit card - can I still apply?
Unfortunately a debit card is required to apply for most unsecured loans in the UK.
What if I have problems paying?
Lending companies understand that peoples' circumstances can change and therefore they can possibly assist you. You should inform your lend as soon as possible the moment you experience problems paying so that they can assist you where they can. Always read the small print at the bottom of the page where it mentions the risks of not keeping up with your payments. Best not to borrow money you don't think you can pay back.
What to Do If I choose to settle my loan early if my circumstances change and I no longer need the unsecured loan?
If you decide that you wish to pay off your loan earlier than the set date, then best thing to do is inform your lender directly. To do this, write to your lender and ask them to give you an early settlement quote amount for your unsecured loan.
This is the total amount you are required to pay to clear the balance of the loan, including any rebate (if applicable). The interest is dependable on when you took the loan out and how much you took out at the time when it started. In most cases, you should get a rebate of any interest you would have paid for the remaining term of the loan.
Some lenders only charge a flat fee, so in those cases, you may not be entitled to a rebate.
Please always be sure to read the full Terms and Conditions of your agreement before agreeing to them.