Whatever your reason for considering an unsecured loan. Whether repairing a kitchen appliance, improving your home or paying off some expensive debts – you can borrow between £50 and £1,500, quickly and easily, with PM Loans.
What are Unsecured Loans?
An unsecured loan relies on the support of the borrower’s creditworthiness. Unsecured loans are approved without the use of assets such as property for example, or other assets as collateral. Lenders will check several factors to decide whether or not you’re likely to pay.
Lenders view your borrowing history to see if you’ve properly paid off loans in the past, then your credit score will be evaluated. In order to acquire a short term loan, you’ll need good credit. The good thing about credit if yours is currently bad or you’ve done little borrowing is that over time you can rebuild your credit. However, you’re legally bound to repay the loan as agreed. Unsecured loans are also known as personal or signature loans.
Types of Unsecured Payday Loans
Different types of unsecured payday loans include:
- Guarantor Loans. These are loans which allow you to borrow money with the assistance of a family member or friend.
- Peer to Peer Loans. This type of loan grants you the ability to borrow money from other people online, they receive a return on their money from the interest that you pay in exchange.
- Personal Loans. This type of loan allows you to borrow money in a cash lump sum and pay them back in fixed monthly payments/instalments.
- Debt Consolidation Loans. This is a form of debt refinancing that entails you taking out a loan to pay off many others, in order to make them easier to manage and payback. This is one of the top reasons people take out an unsecured loan.
Am I eligible for a loan?
During the decision process, the creditor will view your personal credit history. This helps to determine the amount of risk involved when lending money to you. If you have good credit, it is more likely that the interest rates you’ll be paying will be lower, and you will possibly have more loan options available to you.
How much would I have to repay?
The amount that you would be paying back depends on how much you borrow. As well as how long you would take to pay the loan off and the interest rate that you pay. Even though unsecured loans aren’t directly associated with any of your belongings or assets, debt collectors can still come after your assets if there’s a failure to pay back the money you owe. This is an industry-standard.