Loan

Unsecured personal loans are generally taken out for one-off purchases such as a car or a special holiday. The attraction of this type of loan is the fixed interest rate and fixed terms offered, as borrowers can budget accurately and retain better control of their finances.

If you have a poor credit rating, you may find it difficult to borrow money at ‘regular’ interest rates. Interest will be charged at a higher rate than normal so that lenders can protect themselves from the risk of default.

When you apply for a personal loan it’s important to be open with the lender and tell them exactly what the loan is for.

If you have a poor credit history and are not eligible for mainstream borrowing, log book loans offer a way to obtain finance quickly. They involve borrowing money against the value of your vehicle, and this becomes the property of the lender until the loan is repaid in full.

Continuous payment authorities, or CPAs, are often used by payday loan providers as a way to take repayments via a debit card, or sometimes a credit card.

When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line.

Payday loans have become a common form of borrowing throughout the UK in recent years and they are now widely used by many thousands of people nationwide.

Getting personal loans after bankruptcy discharge can be a problem because your credit file will be adversely affected by the insolvency. It is possible, however, but might take a little longer to source the best provider. Some lenders specialise in this type of loan, whilst others operate a separate department within their larger organisation.

In choosing the best loan for you, consideration should be given to a number of factors, including the loan term, interest rate and your borrowing limits. Although you’ll probably have an idea of the type of loan you want, whether secured or unsecured, let’s first look at the main differences between the two.

If you personally guarantee a loan it means you’re committing to repaying any outstanding balance in full in the event of default.

Personal loans are perhaps one of the most straightforward ways of borrowing money but they can nonetheless be a source of serious financial complication and concern.