Consolidate Your Debts
Unsecured Loans
Unsecured loans are given out based on many factors such as your credit history, emploment status and residential status. With an unsecured loan, you are not securing the loan amount against any collateral. Instead, lenders look at how you have manage your borrowing in the past and other factors such as your employment status. This is done in a number of ways but it will be mostly based upon your credit score held with various credit reference agencies such as Experian and Equifax.
As an unsecured loan is a higher risk for the lender than a secured loan. Interest rates can be a lot higher, and the amount you can borrow tends to be much lower and any blemish on your credit record will affect these two factors.
If you have a poor credit history, it is unlikely that you will be able to get an unsecured loan, and any unsecured loan that you are offered is likely to be very expensive.
If you have a perfect credit history, it is possible to get an unsecured loan at a reasonable interest rate. However, even the slightest blemish will affect this. This could include things like late payments, missed payments, mortgage arrears, going over an agreed credit limit (on a credit card or overdraft), defaults or CCJs. All of these factors will affect the amount you can borrow, and the rate at which you can borrow. You need to consider carefully whether an unsecured loan will be suitable for your needs.
For example, If you have £10,000 of unsecured debt already and you want to consolidate this into one loan and you have an average to poor credit history. It is very unlikely that you will get an unsecured loan to meet your needs and perhaps you need to look at a different debt solution such as a secured loan if you are a homeowner.
To speak to one of our friendly helpful advisors complete the form opposite or free phone 0800 015 3103 now.
