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An unsecured loan is an amount of money (usually between £500 and £15,000) that you can get from an unsecured lender such as a building society or unsecured loan company and which you repay over a set amount of time. The unsecured loan applicant will have to pay interest to the unsecured lender for the benefit of receiving the unsecured loan; the total amount you repay can differ from unsecured loan company to unsecured loan company.
An unsecured personal loan can be used for a wide variety of reasons, for example to pay for a new car or home improvements, or to clear existing debt such as high interest overdrafts. repay every month.
Unsecured loan rates are usually fixed for the length of the unsecured lending agreement, which means you know exactly the amount you are required to repay monthly.
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With an unsecured loan the level of interest a loan company can charge could range from around 5.5% APR to as much as 39.9% APR. Getting the right personal unsecured loan can be difficult as there are so many different unsecured lenders wanting to lend you money (if you meet their credit requirements, of course).
To ensure that you get the most suitable unsecured loan, make sure you always compare a number of unsecured loan companies. Choosing the wrong unsecured loan could literally end up costing you hundreds of pounds during the life of your unsecured loan.
Personal unsecured loans credit check : Unsecured loan providers want to ensure that loan applicants represent a 'low risk' and therefore do not have a history of credit problems and overdue debts. To ensure this, the unsecured lender will request your credit file from a credit reference agency. A poor credit file won't necessarily exclude you from obtaining an unsecured personal loan, nonetheless, it's probable you will have to pay a higher unsecured loan interest rate. Credit scores for unsecured loans : Unsecured lenders use different scoring methods for approving personal unsecured loans, so even if you might not meet one unsecured loan provider's qualifications, you may well meet another's. A specialist loan broker who is knowledgable about unsecured lenders' terms and conditions is able to introduce borrowers to the appropriate unsecured lender. Fact-finding : use the following keyphrase 'compare cheapest unsecured loans'.
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