Homeowners may first think about applying for a secured loan but over the past few years, unsecured loans have become more popular than ever in UK.
With unsecured loans, there are quite a lot of benefits that are not really available with secured loan products.
Even borrowers with a bad credit profile will be able to get an approval for bad credit history unsecured loans since there are many good loan companies offline as well as online that offer these loans to borrowers.
Features of bad credit history unsecured loans
Bad credit history unsecured loans are short term loans where the borrower will be able to borrow the loan amount without having to offer collateral. The loan amount that can be borrowed with bad credit history unsecured loans will be up to GBP 25,000 depending on the terms and conditions and the policy of the loan company.
Since these loans are generally short term loans, the repayment term tends to be up to 6 to 8 years. Unsecured personal loans are faster than secured loans since there is no property evaluation involved. There are several online lenders that even offer approvals within a day of the application and so bad credit history unsecured loans can be great for emergency needs.
Before deciding to apply for bad credit history unsecured loans, it is important for borrowers to think about the pros and cons of these loans. The biggest benefit of unsecured loan is that no collateral would be required so there would be no risk of repossession for you.
The processing time for these loans is typically short so you will be able to get access to funds within 2 days from the day of application. Another major advantage of these loans is that they are available to tenants that normally do not get approved for any other types of loans.
However, there are also a few disadvantages of bad credit history unsecured loans. The biggest disadvantage is that the interest rates on these loans are higher and so they may not be affordable for everyone. Also, the amount that can be borrowed tends to be lower than secured loans so they may not be suitable for borrowers that require a high amount.
Bad credit history unsecured loans in UK are offered by many loan companies online as well as offline. Companies like Alliance and Leicester, Blackhorse Personal Finance, Santander, Halifax, Tesco, Nemo Personal Finance are some of the loan companies that offer this loan product.