Personal Loan

Find The Best Personal Loans For Every Situation

We work with the leading personal loan providers in the UK to provide you with the money you need.

What Is A Personal Loan?

A personal loan is a loan through which you borrow money for a specific period. It is an agreement between a lender and a borrower according to which your lender lends you a certain amount of money. You have to repay this amount plus the interest rate after an agreed period. It can be an excellent option for people looking for cash to pay unexpected utility bills, car repairs, or home renovation.

 

It can be difficult to find where to get the best personal loan deal. That is where we can help you. You can get a quick comparison of leading personal loan providers all across the UK and find the best fit for you. We also work as brokers and help you match with the right lender according to your needs.

How Does A Personal loan Work?

Usually, a personal loan is unsecured, which means that you do not need to use any valuable asset such as property or vehicle as a security against the loan. Traditionally a personal loan UK ranges between £1,000 to £25,000. We can explain the working of a personal loan in three simple steps:

Choose A loan And Apply

Once your loan application is approved, you will receive the money in your account within a few days. You can use it for any purpose, from car repair to home renovation.

Get The Money

You can repay the loan amount in monthly installments across a period of one to five years. You have to pay back the loan amount along with the agreed interest rate.

Repayment Of Loan Amount

You can repay the loan amount in monthly instalments across a period of one to five years. You have to pay back the loan amount along with the agreed interest rate.

Types Of Personal Loans

There are two main types of secured loans that include secured and unsecured personal loans.

Unsecured Personal Loans

This type of personal loan does not require any of your assets as collateral against the loan. However, for an unsecured loan, you have to pay a high-interest rate to take out such loans. If you default on a loan, your lender may place a charging order on your property.

Secured Personal Loans

Most often, to take out a secured personal loan, you have to use your residential property as security. However, some lenders also accept other valuable assets such as jewellery or cars as collateral. If you fail to repay the loan, your lender can repossess your property or asset. Lenders will get their loan amount back after selling the asset. This type of loan is open to only those who possess residential property or valuable assets.

Pros Of Personal Loans

There are several advantages of personal loans that include:

Fast Access To cash

You can get quick access to funds after approval. The time may vary from lender to lender, but usually, you will get the funds within one or two working days. You can use these funds to fulfil your short term emergency financial needs.

Flexible Repayments

You have an option to choose how much time you want to take to repay the loan. It usually ranges from a few months to five years.

Be Used For Almost Anything

Personal loans are popular among borrowers due to their versatility. You can use these funds to cover anything from car repair costs to home improvements and expenses related to events like weddings. The uses of acceptable loans may vary depending on the lender, but most lenders allow you to use funds for any personal, family or household purpose.

Improves Credit Score

If you make your monthly repayments on time, short term personal loans can help you to improve your credit score.

Eliminate Need Of Collateral

Most personal loans are unsecured and do not need any collateral. It means there is no risk of losing a valuable asset if you default on the loan.

Cons Of Personal Loans

Along with the benefits, there are some disadvantages of personal loans.

High-Interest Rates

When you are taking out an unsecured loan, the interest rate is usually high, making the loan expensive overall.

Difficult To Borrow With Poor Credit

If you have defaulted on loans in the past or have a bad credit score, you find it difficult to get approval for personal loans.

Fees And Penalties

In addition to interest rates, some lenders charge fees such as origination or application fees, late repayment fees and administration fees. All these changes add up to your borrowing cost and make it expensive. When you miss a payment, lenders can take legal action, which can impact your credit profile.

Can I Get A Personal Loan With Bad Credit?

You can get a personal loan even if you have a bad credit score or defaulted on loans in the past. But you will not be able to get the best personal loan deal, and you also have to pay a high-interest rate. You may also not be able to borrow an amount that you need.

How To Secure Best Personal Loans Deals?

Alternatives To Personal Loans

Although personal loans offer flexibility and ease to borrowers, they may not be suitable for everyone. If you want to low interest rates, you can consider alternatives to personal loans.

Overdraft Facility

If you need a small amount of money and you are sure that you can repay it quickly, you can take an interest-free overdraft on your current account. Most banks do not offer an overdraft facility to the students, and you can usually take an amount of £50o only.

Secured Loans

If you do not have a good credit history and find it challenging to get an unsecured personal loan, you can consider a secured loan. In such loans, you have to use your valuable items as security against the loan to ensure the lender that you will repay the loan on time. Of course, if you can not repay the loan on time, you will lose your asset.

Credit Cards

A credit card can also be an alternative to a personal loan if you want to borrow a small amount for a short period. You can even get 0% interest credit cards in case of best deals for more than two years.