 Unsecured Loans & Credit Cards
Some options do provide a very quick route to getting hold of funds,
and both an unsecured loan and credit cards are ways of doing this, but
it can prove to be expensive. Acceptance is usually decided on the result
of a credit score.
Your credit score is based on such things like your employment status,
income and credit history.
With an unsecured loan the maximum period of paying back the loan is
normally 5 years (60 months). This means your monthly payment could be
quite high compared to other options like a secured loan or mortgage
where you are able to spread your repayments over a longer period of
time.
With unsecured loans and credit cards you will find the interest rate
is generally higher than mortgages and secured loans. This is because
the lender is having to take on more risk when lending money, this is
why you will find the interest rate is increased.
The downside with this type of funding is that these lenders tend to
have little or no tolerance of late payments. Lenders are quick to take
legal action to recover payments that have been missed, but also in such
cases will usually demand the repayment of the full amount that has been
borrowed, along with interest and the legal cost that have been incurred.
If you are finding it difficult to get more money from your bank or
building society, whatever the reason, there are loan providers that
are prepared to advance the funding you require. For example if you are
looking to raise funds for a home improvement then the lender may arrange
for the money to be released to you in stages throughout the installation,
this way they can take into account the amount of work completed. The
final cost may differ from the budgeted amount so it’s best to
ensure that you borrow only the funds you need.
Be sure to take advice from a regulated mortgage advisor.
If you would like us to arrange for someone to talk to you about a loan
or a way of raising funds, then please click here to fill out our request
form.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR
HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A/YOUR MORTGAGE
OR ANY OTHER DEBTS SECURED ON IT.
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