Unsecured loans are small amounts that one can borrow for an emergency. One does not have to offer his property as collateral for the loan. When you badly need cash, and your friends or relatives cannot give you a loan, an unsecured loan can be a blessing. Getting the amount that you want to borrow is quick.
However, only people with a stable salary may apply to borrow money. Because the application process and release of funds use electronic means, you can access the funds in your account within 24 hours of approval.
The amount that you can borrow on your first loan is £100 to £1500. The lender can increase the amount that you can access through unsecured loan increases on your next application as long as the lender sees that you can afford to pay back what you owe. The annual percentage rate might appear high, but if you divide it on the number of months in one year and your payment period, you would realise that the interest may not be as high as what you think.
Here are some reasons to take an unsecured loan in the UK if you have a regular job.
Applying for an unsecured loan is made easy by the few documents that you must submit when you apply. Submit proof of your income in the last six months and proof of residency in the current address you used in your application in the past months. You can use your payslip as proof of income and residence certificate to prove your current address.
No Credit Check
One of the reasons that lenders refuse your loan application is your low credit rating. Lenders can see your credit history on the website of the major credit reference bureaus in the UK, which are the Equifax, TransUnion, and Experian. When lenders conduct a hard check on your credit record, your rating will go down. By taking an unsecured loan, your credit rating and credit score will not affect your loan application and approval.
As soon as you have submitted your requirements online, the lender will process your application. If everything is in order, he will release the funds to your bank account. You can then withdraw the funds as soon as you can.
You Can Use the Funds for Any Purpose
The lending company does not ask you how you are going to use the cash that you borrowed. You can spend the money on some emergency or for refurbishing your apartment or for taking an essential trip to another city or state.
You Do Not Put Your Property at Risk
When you offer collateral for a loan, you put your property at risk. The lender can seize whatever valuable you provided to secure the loan. By taking an unsecured loan, you do not have to worry about losing your car or the house that you offered as collateral if ever you fail to pay back your loan.
The Repayment Period Is Short
Your loan term is only for 15 days. However, you may pay the interest on the date due and pay the remaining balance a week after. Once you have paid up your debt, you can apply for a new loan. The first loan amount is £100 to £1500, and the lender may increase the amount the next time that you borrow. Because of the short repayment period, you can be debt-free after a few weeks of borrowing, which will bring you peace of mind. You will feel confident that you can apply for another loan again if you need cash.