If you’re looking for an unsecured personal loan, there are a huge number of options available to suit the specific circumstances of almost every borrower. Even if you have a bad credit record, there will be an unsecured loan for you. Alternatively, if you want to borrow money over the course of a year, or over a shorter term like a month, there are plenty of loans out there to meet your needs.
As always, the key to finding the right loan for you is to think carefully about your requirements and check with a number of different lenders before you make your decision. You should think about the amount you want to borrow, how long you want to borrow it for, and how much you can realistically afford to repay every month. Only when you’re convinced you need a payday loan, and are confident you can pay it back, should you start to approach the lenders.
What is an unsecured loan?
Unsecured personal loans usually involve relatively small amounts of money charged at a fixed rate (at wizzcash.com you can borrow between £200 and £1,000). As the name suggests, this type of loan is taken for personal reasons. So, if you want to make a one-off purchase, or pay for essential repairs to your car or boiler, an unsecured loan is likely to be the best option for you.
One of the real benefits of unsecured loans is the fact that they are not secured against your property, so if you are unable to repay the loan, you do not risk losing your home. For this reason, unsecured loans are well suited to those who rent their home, as they have no property to secure the loan against. However, this type of loan is also popular among homeowners who want to get their hands on relatively small amounts of money quickly.
Unsecured loans are not without risk
If you apply for an unsecured personal loan then your home is not at risk. That’s definitely good news for borrowers, but as with any loan, there is still some level of risk. Although your home is safe, the lender is still entitled to recover the money that is owed if you are unable to make your repayments.
If the debt is small, a lender may arrange for a County Court Judgement (CCJ) to be issued against you. If the debt remains unpaid, the CCJ will show on your credit record and could affect you ability to source credit in the future.
Unsecured loans for bad credit
Millions of people across the UK have bad credit events on their record. A bad credit event can be anything from a default on a loan to something as serious as bankruptcy. Even something seemingly as minor as a missed payment on a mobile phone bill can show up on your credit report and affect your chances of being approved for a loan in the future.
As part of new Financial Conduct Authority guidelines, all short-term lenders must check the borrower can afford to repay the loan before it is agreed. Although a bad credit history might affect your chance of finding an affordable mortgage, in most cases you will still be able to find unsecured loans for bad credit.
So, if you are:
- Over the age of 18
- A UK resident
- In current employment and earn at least £750 a month
Then there’s still a good chance you’ll be approved for a wizzcash.com loan, even without a perfect credit history.
How do you find the best unsecured loans?
As with any financial product, the best solution for you is one that fits your particular requirements at the time. If you’re looking to borrow a significant amount and borrow over a longer period, a secured loan will usually be the cheaper option. The repayment periods on secured loans are usually longer, which makes the monthly loan repayments more affordable.
The loans we provide at wizzcash.com are better suited to borrowers who need a short-term cash injection to help them out of a tight spot. The quick and easy online application also means you can apply for the loan from the comfort of your own home. There’s no complicated paperwork or long queues, and if your application is approved, you’ll receive the cash in one lump sum. We also offer flexible repayment terms, so you can tailor the loan to meet your particular needs.
The pros and cons of an unsecured loan
- Unsecured personal loans can be a fast and easy way to get your hands on the money you need.
- They offer excellent flexibility, allowing you to choose the amount you borrow and the repayment period.
- The application process is fast and relatively simple.
- Your property or other assets are not at risk.
- The best loan rates are usually available on loans that are repaid over a longer term, so you should expect the APR on a shorter-term loan to be considerably higher.
- There are limited amounts of money available with an unsecured loan due to the additional risk for the lender.
- The loan duration is usually quite short, which can make the monthly repayments seem comparatively high.
- There is also the risk that if another financial emergency occurs, you will be less able to manage this situation due to the existing debt.