What are Unsecured Personal Loans?

Unsecured Personal Loans are a type of funding source that can help you meet planned and unexpected expenses without collateral.

You will pay down the debt in fixed equal instalments over a period of months. The term of these loans can vary from one to three years, depending on the amount you borrow, and you do not have to bear the risk of losing your valuable asset.

A lender still needs some sort of guarantee to get the money back, and thus they either charge slightly higher interest rates or prefer to lend money only to the people with a better credit record.

You can borrow between £10,00 and £25,000 depending on your income statement and affordability. We can help you get a better deal than those of mainstream lenders.

How Can I Easily Qualify for Unsecured Loans in the UK?

You can smoothly qualify for an unsecured loan provided you meet the following conditions:

Can I Apply for Personal Loans If I Have a Bad Credit Score?

The best thing about modern-age lending is that people with low credit scores have an equal chance of borrowing funds.

These will be the unsecured personal loans for poor credit where the collateral is not needed. Instead, we approve loan applications on the applicants’ monthly income capacity. Therefore, we offer only affordable loans.

Note that bad credit personal loans carry slightly higher interest rates. It is always advisable that you should apply for these loans when you need money urgently.

You can take out these loans for various reasons such as:

If you have a very bad credit rating, you will likely have difficulty qualifying for these loans. Since these loans require neither collateral nor guarantor, the lender will never take on such a risk to lend you a big amount of money to save your financial interests.

If you need money urgently to fund emergency expenses, very bad credit loans with no guarantor will be a suitable option for you. These are small loans that exclusively have been designed to finance unforeseen expenses. Since these are small loans, you will pay them off in a lump sum.

These loans are suitable for funding only unforeseen expenses that you cannot put off at all. In addition, you can apply for these loans when you are to build your credit rating.

If your purpose is to improve your credit rating, the lender will likely put on instalment repayment. This is because only instalment loans contribute to building a credit score.

Can I apply for unsecured loans for the business?

If you have started your own business, you will likely need some money to fund it. Unsecured loans can be the best solution even if you need slightly bigger money. This is why these loans are also called unsecured startup business loans in the UK.

These loans work differently from standard unsecured personal loans. Here is what you need to qualify for these loans:

If you need only a small amount of money to fill the gap in your savings, you should try to seek loans for the unemployed in the UK instead of unsecured business loans. This is because these small loans do not require any formalities to meet that the latter one follows.

What are the Benefits of Unsecured Personal Loans?

Unsecured personal loans can offer you many more benefits than short-term loans. Here are some of them:

  • You can borrow large money- Small Cash loans that require paying off the debt in a lump sum cannot fund your big needs. These loans are generally apt for emergencies. Contrary to these loans, unsecured personal loans can allow you to borrow large money that you will be paying down in fixed monthly instalments. These loans are ideal for funding planned expenses too.
  • You can improve your credit score- Loans with lump-sum payments do not show a significant improvement in your credit score even if you have paid back the loan on time. This is because it does not prove your creditworthiness in the long run when financial circumstances keep changing. Unsecured loans can help you build credit rating if you do not default because we will report credit reference agencies of your every payment.
  • They have many uses- There are various types of loans used for only one purpose: mortgages, auto loans and student loans. You can use it personally for many purposes. Whether you want to consolidate your debt or want to renovate your house, these loans are an ideal choice.

What is the Difference between Secured Loans and Unsecured Loans

As the name suggests, secured loans are those that require you to put collateral against the loan and unsecured loans are those that do not use any security. Apart from this fundamental difference, the following table outlines the difference:

Secured Loans Unsecured Loans
  • A secured loan is a crucial source of borrowing money by using the assets like a house, or car.
  • These loans are ideal when you need a large amount of funds for a longer duration.
  • The interest rates are usually on the lower side because the lender has the collateral to compensate for their loss of funds.
  • These loans aim at helping borrowers with a good credit rating and those who have steady employment.
  • Usually, a guarantor is required to backup the repayments and that person should have a good credit score.
  • Lenders offer the cheapest unsecured personal loan without requiring collateral.
  • These are small-term loans and work best to win over a prevailing financial emergency.
  • Unsecured loans for bad credit generally have high-interest rates as no collateral is involved and the applicant does not have a good credit score.
  • Considering the small nature of the loans, these are also available for unemployed people.
  • You do not need to arrange a guarantor even if your credit rating is not up to scratch.

Focus Loans is not only a private personal loan lender but also a financial companion of Britons. You surely have better financial condition once you apply for unsecured personal loans with us.

Unsecured Personal Loans Faqs

Can I get an unsecured loan with bad credit?

Yes, the direct lender provides unsecured loans in a bad credit score. You just have to search for the lender to get the desirable approval with this constraint. But do not let yourself go confuse that lender will not check your credibility, for that they will consider your income source in order to give you the desirable approval.

Which loan company is best for bad credit?

Well, there are many direct lending companies that you can opt for but to choose the best is a test for you. To make your task easy, you can look for companies like Focus Loans or Loan Bank like that. It is called to be a test for you because no one knows the actual requirement of your situation so if you select the lender that can be convenient for you.

Are unsecured loans the best idea?

The type of unsecured loans, are known to be the best to handle because it does not concern you to present the collateral. The lenders have reduced the stress of the borrower so that they can apply with trust. Not only that, it helps you to get the amount depending upon the credit score and the income status.

Can I get a small personal loan with bad credit?

Yes, you can get small loans with a bad credit score. It is because the direct lender accepts the applicant's request because sometimes, people lack in maintaining the credit score but they have a good source of earning that can count to provide the loan assistance so that they can solve the trouble with the help of instant disbursal.

Can you get a loan with a credit score of 550?

You can be considered to get the loan even under the score of 550 if you have a good source of earning. The possibility is there but you have to be cautious about your interest rates because with the credit score of 550 it becomes very tricky for a lender to provide you with the desired amount. But if you think that your income is capable enough to handle the pressure of loan then by just filling the online application form, you can get the instant disbursal of funds.

What is the best unsecured personal loan?

The direct lender provides you with all the borrowings under the name of unsecured personal loans. It is you who have to match your need and get the favourable amount depending upon your credit score. However, if you are having the bolt of low credit score then also you can think of getting the amount from the source of direct lender.

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