  What is Unsecured Loan?Customers with a higher credit score will be seen as lower risk and are subsequently more likely to be offered an unsecured loan, and may be charged a lower interest rate as a result. An unsecured loan is perfect for customers who want to borrow between £1000 and £10,000 and are often available to customers for periods between one and five years An unsecured loan can be used for any legal reason, but common uses include paying for a new car purchase, spreading the cost of buying a new kitchen or bathroom suite or for buying and installing a conservatory. They may also be used for cheaper extension work on the home. For loans of more than £10,000 many customers will turn to secured loans, which are usually used by customer looking to borrow more money. An unsecured loan will often have a very competitive interest rate, and many customers will be given a small payment holiday of three months before making their first repayment to allow them to use the money they have borrowed for its intended purpose. There are a huge number of different unsecured loan providers which increases competition between lenders and will help you in your quest for the lowest interest rate possible. An unsecured loan can also be taken out by non homeowners or those without any assets, unlike a secured loan which requires the customer to have an asset to secure against the money they are borrowing. |
