What is an unsecured loan?
Firstly, what’s the difference between a secured and an unsecured loan? When you take out a secured loan, the lender uses one of your existing assets – usually your home or car – as security for the loan. This means that if you are unable to make your loan repayments, the lender has the legal right to repossess your home or car to pay off your debt.
But an unsecured loan is very different. It is completely separate from anything else you own. The lender has no claim on your home or car, so there is no risk that you could lose anything if you are unable to make your loan repayments.
However, with an unsecured loan it is still important that you are able to make your loan repayments. Failure to do so would not only affect your credit rating but could also lead to you being charged additional fees or even being subject to a CCJ (County Court Judgement).
So do lenders make it difficult to get an unsecured loan?
It can sometimes feel that way. But a lender needs to be very confident that you will be able to make the loan repayments before agreeing to give you an unsecured loan. This is because they have no access to any of your assets – such as your home or car – to get their money back if you are unable to repay your debt.
So you can expect to go through a stringent credit checking procedure if you are applying for an unsecured loan. This can be quite stressful, particularly if you have poor credit history from previous financial problems.
However, you should be able to find a fair lender who will carefully consider your application and make the best decision for your circumstances. At Loans 2 Go we would be willing to lend to you even if you have poor credit history or a CCJ, as long as we are confident that you are now able to afford to make the loan repayments.
Where is the best place for an unsecured loan?
At Loans 2 Go we offer unsecured loans of between £250 and £2,000. Our loans are available both to tenants and homeowners. They are repayable over a period of 18 or 24 months, in weekly, fortnightly or monthly instalments.
To apply for an unsecured loan with Loans 2 Go, all you need to do is:
- Work out how much you can afford to borrow.
- Complete our simple online application form.
- Have a quick phone chat with us to discuss any aspect of the loan.
Then, once your loan application is approved we aim to transfer the money into your bank account within 15 minutes.
So for an unsecured loan that ticks all the boxes, get in touch with us at Loans 2 Go.