Unsecured loans or personal loans as they are sometimes referred to are generally designed for tenants and non-homeowners who do not have a property to act as security for the loan. They are also popular amongst homeowners who do not want to risk losing their assets if the loan defaults. There are now a number of different types of unsecured loans available, each offering different amounts over different terms in order to fit certain financial circumstances. Personal loans are generally available between £1000 and £25,000 over a term of 1 to 10 years. Banks, building societies and supermarkets are the only realistic place you will be able to find unsecured loans up to £25,000 these types of loans will only be available to those with immaculate credit history. Long term unsecured loans such as those offered by banks and supermarkets will have relatively low rates, ranging from 6% up to 25%. The general trend is the rates of APR will be dependent on the amount borrowed and the loan term, for example payday loans offer the smallest amounts over the shortest term and have the highest APR. The APR is not always a true representation of the repayments, especially in the case of payday loans which are designed to be repaid in full at the borrowers next payday, it’s only if the loan amount roll over that the repayments can become unaffordable. If you have any bad credit on your credit file (such as missed payments, defaults, CCJs, IVAs or bankruptcy) it’s very unlikely that you will be approved for finance via mainstream lenders. Luckily there are now a number of lenders offering specialist products to those with bad credit. The problem being; due to the risk involved when lending to those with poor credit, these lenders will only be able to offer relatively small amounts (between £ 1000 and £5000) over a relatively short-term (up to 5 years). So for those with bad credit history the options are: installment loans Guarantor Loans Amount available: Between £1000 and £5000 Loan Term: 1 to 5 Years Processing Time: Same day Average APR: 50% to 55% Additional Information: Require a homeowner guarantor to support the application and guarantee the monthly repayments if and when the borrower fails to do so. Installment Loans Amount available: Between £100 and £1000 Loan Term: 1 to 12 months Processing Time: Same day Average APR: 200% to 300% Additional Information: Does not require a guarantor, the loan term will be dependent on the amount borrowed. Payday Loans Amount Available: Between £20 and £400 Loan Term: Designed to be repaid in full at the borrowers next payday Processing Time: Within 1 hour. Average APR: 2000% to 4000% Additional Information: Designed to be repaid in full at the borrowers next payday, but the loan amount can roll over, this is not advised that borrowers allow this to happen due to the high rates of interest. CategoryGeneral Post navigation Previous PostPrevious Online Casino Bonus TipsNext PostNext ESL Vs Bilingual Teaching Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.