Category: Personal Loans

Most Popular Types Of Personal Loans

There are many different types of loan available and they can be quite different in the way that they work. Some are better suited to overcome a short-term financial emergency while others are better suited for other purposes.

Guarantor Loans: this type of loan is also becoming more popular because it is designed to help those who do not have a perfect credit history to arrange the finance they need. As such it can be a useful tool to improve your credit rating so long as you maintain regular payments to it. They are available for amounts up to £5,000 and for terms of up to 5 years depending on the loan size. The lenders do not require a credit check on the applicant in the underwriting process, and so long as you are not in an IVA (Individual Voluntary Arrangement), or bankrupt anything else is not really a problem. The lenders are able to offer this type of loan because the repayments are guaranteed by a guarantor (co-signee). The guarantor will need to be a homeowner who is financially stable, with an income of £800 or more between the ages of 23 and 70 years old. They can be used for any purpose and open the finance market for those who would otherwise not be able to arrange a loan.

Most Popular Types Of Personal Loans

Payday Loans: this type of loan is a short-term emergency loan available for amounts up to £1000. They are called payday loans because the loan is paid back in gull on your next payday. This is by far the most popular type of loan currently available with millions of people resorting to them to overcome their short-term financial problems. The main reason for their growing popularity is the fact that they are quick and easy to arrange (usually paid out the same day you apply), and also very easy to understand, making them an ideal solution when you need some cash very quickly for whatever reason. Also because the lenders charge a flat fee (usually around 20%) you know exactly how much the loan is going to cost you right from the start and because you repay the loan in full on your next payday it does not have an impact on your long-term financial situation. read more about payday loans at https://www.consumer.gov/articles/1011-payday-loans-and-cash-advances

Secured Loans: with this type of loan the lender will require some form of collateral usually in the form of a second charge on your home, however there are also lenders that will accept your car as security (logbook loans). This type of loan can be arranged for larger loan amounts of up to £100,000, and for terms of up to 25 years. As such are quite often used to consolidate more expensive loans and credit card balances into a cheaper debt consolidation loan, or to fund home improvement. They are usually offered at lower rates as the lender has the collateral to fall back on should you default on the repayments.  A same day guarantor loans can also be used similarly. Contrary to this there is an another loan type called “Unsecured Loan”, click here to know about this type of loan.…

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Personal Loans Options Explained

Personal Loans Options Explained

A personal loan by definition is an unsecured loan that is taken out by a person for a variety of reasons. They are mostly offered by the major banks and building societies in the UK. However most of the banks have now decided that in order for you to qualify you must be an account holder with the bank. They are available for amounts of up to £15,000 and can be repaid over terms of up to 5 years. On top of the usual providers there are also several UK super market chains that offer this type of loan, as well as the more specialist lenders. Personal loans are probably the most popular of all loans that are taken out and they come in many different guises.Having trouble borrowing money on your own take the services of loan manager experts.

Guarantor Loans: This probably the most forgiving of any loan in as much as it is available to a great many people no matter what their credit history, so long as they are not registered as bankrupt or in an IVA. They will even offer a loan to a person that is currently unemployed! This type of loan can be taken out for sums from £500 to £5,000 and can be repaid on terms from 12 to 60 months depending on the amount borrowed. The reason that the lenders can be so flexible with this type of loan is the fact that they require a guarantor to act as co-signee who guarantees that the repayments will be made. This means that if you take out a loan of this kind and do not keep up with the repayments they will be collected from the guarantor.click here to read more information about Guarantor Loans.

Personal Loans Options Explained

Payday Loans: A payday loan is a short-term loan for amounts from £75 to £750 that is repaid in full on your next payday. This is by far the most popular of all loan types currently being approved in the UK. With the number of people who are taking advantage of this type of borrowing growing month on month. Its alarming growth rate is due to a number of reasons but mainly because they are quick and easy to arrange and can be paid out on the same day that you apply. They are designed to help people overcome short-term financial issues that need to be resolved very quickly, maybe your car has broken down and you need it fixed quickly so you can go to work, but you do not have the money put aside for it. This type of loan is also very easy to understand, because the lenders explain to you right at the outset how much the loan will cost you, and you know that it will be paid back when you next receive your salary.

The fact that this type of loan is generally unsecured loan (the lender requires no collateral to be held as security), to read more about it please visit http://www.cifoundation.net/defining-the-term-unsecured-loan/. the more main stream lenders will usually only lend to people with a relatively good credit record. This means that anybody with no credit history (not having borrowed any money previously), or a bad credit guarantor loans record (late payments, CCJ’s and arrears or defaults) will find it more difficult to arrange a personal loan without going to one of the more specialist lenders and their products detailed below. Unfortunately this will mean that if your credit history forces you down the route of taking a loan with one of these specialist lenders the interest rate that you will be charged will be more expensive.…

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