Loan brokers are the best way to find an unsecured loan that suits your individual needs. Instead of having to search through each loan provider’s offer (which takes a lot of time) you can have it done for you at no cost to you.
In this article, the BestUnsecuredLoans team explain:
- What an unsecured loan is,
- Why you should consider an unsecured loan,
- Whether or not you need a good credit score to get an unsecured loan,
- Why you should choose a broker, and
- How loan brokers work.
What is an unsecured loan?
An unsecured loan (or personal loan) is a form of borrowing money where you don’t have to provide any collateral or security to a lender. This is where you give up something valuable (like your home) in case you can’t pay off the loan. With unsecured loans, you don’t have to do this.
Instead, the loan provider decides whether to give you a loan based on your credit score. This is a number given to you based on how many loans you have taken out in the past and how many you have paid off in full and on time.
An unsecured loan can be for anywhere between £200 and £5,000 and sometimes even more. You pay off this loan in instalments for a set amount of time you agree with the lender in advance.
Why should you consider taking out an unsecured loan?
There are many reasons why people decide to take out unsecured loans. Your car may need repairs or a utility bill might be higher than you expected this month. Unsecured loans are perfect for one off purchase that need to be paid for upfront. With unsecured loans, you buy whatever you need to buy and then you pay off the loan over a manageable amount of time.
Many people choose unsecured loans to get the money they need for an emergency– and by making each repayment on time and in full, they increase which improves their credit scores. This way, you can kill two birds with one stone – you get the money you need and you set yourself up for cheaper loans in the future.
Unsecured loans can also be used to consolidate all your debts into one easily manageable monthly payment. This means you pay off any other debts that you have with an unsecured loan so you only have to pay off the one loan rather than making multiple payments a month to different lenders which can be difficult to keep a track of.
Do you need good credit for an unsecured loan?
If you have a good credit score, more lenders will be willing to work with you. This is because you have a proven track record of being able to pay off your debts and meet any bills. If you don’t have a good credit score, it isn’t the end of the world. There will still be plenty of loan providers who will be happy to provide you with the finance you need.
In fact, there are some loan providers who specialise in working with those who have lower credit scores.
Why choose a broker?
When you are looking for an unsecured loan, you have two options; either find a direct lender who is willing to work with you or use a loan broker. Choosing a direct lender by yourself can be a tedious process. It can take many hours to find a loan that has terms that suit you which you meet the criteria for.
By choosing a loan broker, you take all the legwork out of the process. Loan brokers don’t provide you with the loan themselves – they simply put you in touch with the loan provider who is best suited to working with you. This saves you both time and money in your unsecured loan search.
The FCA are the government watchdogs that regulate the unsecured loan market. Any FCA authorised broker will make sure that they only connect you with a lender to provide you with a loan that you can definitely pay back in your current financial circumstances.
How do brokers work?
A loan broker takes all your information and then they perform a credit check on you. They then submit your application and your credit report to the loan providers that they know are most likely to lend to you. After receiving all the best offers that the loan providers are willing to offer you, they come back and show you the one that they believe will suit you the most.
This way, you save time by not having to search for all the loan providers best offers yourself and you will come away with the best price for the loan that is available to you.
Apply for a payday loan or short-term loanthrough BestUnsecuredLoans
How can I apply for a payday loan or a short-term loan through BestUnsecuredLoans?
To start, simply fill in our form with your details – you will need to tell us how much you earn, how much you spend each month, how long you have worked at your current job for, how much money you would like, and the period of time you would want to pay back the money for.
Once you have done this, we conduct a quick credit check. Once this is complete, we send off your application to our panel of lenders. They will review your application and send you their offer. Then, we take all their offers and compare them for you, so you can see which provider is offering you.
You will be able to see how much the lender is willing top give you, how much interest they are going to charge, how long the repayments are going to last for, and how regularly you will be expected to make the repayments.
This is all possible because of our advanced computer system and our close relationship with our vast network of lenders. To get started, click here.