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5 Things to Remember about Unsecured Personal Loan UK

5 things to remember about unsecured personal loan ukFaced by a slow global economy and increasing geopolitical shifts many household owners in the UK are finding it hard to meet their financial obligations. However prudent you are at managing your finances there is no denying that at times you will have a cash shortfall that requires a quick remedy. Most traditional banks are not every keen to offer an unsecured personal loan for such an emergency especially if your credit profile is poor.

Stringent Eligibility Criteria

Since the 2007/2008 global recession financial situations have formulated more stringent regulations to avoid default. This has become the main risk mitigation strategy which means many consumers are not able to access loan facilities.

However, there are now online lenders who are licensed to offer loan products and they are more flexible and affordable. If you are looking for a personal loan to sort out an emergency it is advisable to approach an online lender.

Below is a comprehensive guide to help you make an informed choice when looking for an unsecured loan:

1. Secured Vs. Unsecured Loan

Before applying for an unsecured personal loan in the UK it is advisable to understand all the details about the financial product you are purchasing.  For a secured loan you need collateral to qualify for funding. This could be your car or home which reduces the risk for the lender. In case of default these assets are reposed to clear the outstanding amounts.

On the other hand an unsecured loan is given based on your creditworthiness. This loan product is given based on your strong credit rating and ability to pay. If you have a constant flow of income it is easier to qualify for a loan which will be repaid over an agreed period of time.

2. Benefits of an Unsecured Loan

An unsecured loan is ideal if you are looking for a small amount to cater for emergencies such as home renovations, car repairs, and school fees among others. It is easy to repay such an amount if you have a steady source of income without having to risk your home or car. If you have a good credit rating the interest rates are lower and you will not have to strain when repaying. These loans are popular among first time borrowers who don’t have a home or car to use as collateral.

3. What Determines Success of a Loan Application?

Your credit rating is the first consideration by the lender when assessing your loan application. If you have defaulted on other payments your poor credit rating will limit the amount of money you can access and the interest rate. If you have a case at the County Court Judgment (CCJ) your rating will also be affected while failure to appear in the electoral register denies you access to the unsecured loan.

4. Eligibility

While different lenders have their own eligibility requirements there are some basic things that will either qualify or disqualify you. You must be 21 year old and a permanent resident of the UK, have a stable source of income earning income greater than £15,000 per annum and without any bankruptcy case pending. To ensure you get the loan make sure you have proof of residence, proof of income, employment details and bills of your monthly expenses.

5. Advantages of Online Unsecured Loan

An online unsecured personal loan is easier to apply from the comfort of your home or office. You will receive instant notification about the application and you just need to visit the office to sign the documents and pick up your cash. A dedicated loan assistant will work with you to help clarify everything on the loan contract.

Everyone at one time or the other undergoes a rough financial patch and with an unsecured loan you are able to meet such a cash shortfall. Go on and find an established lender based on reputation, favorable interest rates, and flexible repayment and licensing.

http://www.magpress.com/wp-content/uploads/2017/02/5-things-to-remember-about-unsecured-personal-loan-uk-650x434.jpghttp://www.magpress.com/wp-content/uploads/2017/02/5-things-to-remember-about-unsecured-personal-loan-uk-280x220.jpgRonald Faced by a slow global economy and increasing geopolitical shifts many household owners in the UK are finding it hard to meet their financial obligations. However prudent you are at managing your finances there is no denying that at times you will have a cash shortfall that requires a... MagPress