Applied on the Monday morning and was approved within a few hours. brilliant service
Jane M - Essex
Easy online application and received my loan really quickly. Great experience.
Gary P - Liverpool
An unsecured loan is a personal loan which is arranged and approved based on the credit history of the applicant. The unsecured loan is not secured on any collateral hence the name unsecured. Most companies provide unsecured loans online now as the process is quick and simple and eliminates the need for forms to be completed by hand.
The interest rates of unsecured loans will largely depend on the applicants past credit, a higher credit score will be rewarded with a lower APR but if you have a poor credit history you can expect to pay a higher APR. Due to the loan not being secured on anything such as a house it is more difficult to recover the money should the applicant default on the loan so It's really all about the level of risk to the lender.
An unsecured loan is a good choice for people that wish to borrow money without putting their assets at risk such as houses, jewellery or other collateral
What can unsecured Loans be Used For?
Unsecured loans can be used for anything, some applications ask what you need the money to record data, others may use it as part of the final decision, however there really is no stipulation on what you can use the loan for. People take out unsecured loans for many different reasons such as home improvements, car repairs, holidays, special occasions or sometimes just to see them through a difficult time. Some people use an unsecured loan for purchasing a new car but there are specialist products specifically for car finance
Are Personal Loans and Unsecured loans the same?
Basically yes, a personal loan and an unsecured loan or unsecured credit are the same. Many people use the term personal loan as a description for a small loan which is repaid over a short term period these could also be what is called a payday loan. Normally Personal loans are for people borrowing up to £10,000 but can be more depending on the circumstances.
Which are the best unsecured loans?
It is of course advisable to shop around when looking for a personal loan the better your credit score is will determine how much choice you have within the market, that being said it is still worth taking the time to compare different companies to find the best loan. In an ideal world the lower the APR the better because the lower it is the less you will be paying back. You should always carefully read any agreement before signing for any type of loan of finance product.
Other Things to consider with UK Unsecured Loans
Here are some other things you may be wondering about when it comes to applying an unsecured loan.
What if I can't pay repay the unsecured loan back?
The application process will take into account different variables such as your employment, salary, your monthly outgoings as well as your past borrowing history or in other words your credit score. This is whats called responsible lending and will make sure people only borrow what they can afford to pay back. In circumstances such as loss of employment, sickness or anything else that is unforeseen you should always contact the lender as soon as possible to come to an arrangement. The worst thing to do it ignore the issue. Most companies will be helpful and work with you to make things work. You should always read the terms before agreeing to the application which will cover charges and process in the event of non payment.
How Unsecured Loan Applications Work
When you apply for an unsecured loan you will normally have to complete a form which will ask you for your name, date of birth, current address as well as your previous address if you have been a resident at your current address for less then 3 years. The application will also ask for details of employment such as employers name, address, salary and how long you have been employed with your current employer. You will normally be ask for your current out goings in order to make sure you can afford repayments of any loans you are applying for. Once the application has been processed you will normally be given a decision very quickly and upon successful completion your money will be deposited into your account.
Our unsecured loan form is a quick and easy process and is the first step to applying for the right personal loan suited to you. Once submitted your details will receive immediate attention and you will be informed of what happens next with your unsecured loan application.
Complete our quick form today and your details will be securely passed to our main partner lender to find the best unsecured loans.
First Quality Finance is Authorised and regulated by the Financial Conduct Authority - Firm registration number 758281
Authorisation can be checked on the Financial Service Register at www.fca.org.uk. Licenced by the Information Commissioners Office, (ZA200642)
First Quality Finance Ltd Registered in England. Registered Office: The Old Mill, Haslers Lane, Dunmow, Essex, CM6 1XS
Company registration number: 10121312