How to apply for an unsecured loan?
Here at www.anytypeofloan.co.uk we have decided to give you a step by step guide to applying for a loan and what it entails in terms of forms and documentation you will require. It is an easy process (if you know what you are doing) and this guide should make applying for a loan a really simple and hassle free process.
Lesson 1 of 3
Find out what type of loan you need first of all. This will make it easier for you to understand which loan provider to go through and it will become clear why this is important later.
To explain in clear simple terms what the different loan titles/descriptions mean:
Secured loan
This is where you obtain a loan by offering something to the lender in terms of security. Like a car or house for example so that if the borrower fails to make their loan payment, the lender can repossess the car or house in lieu of payment for the borrower not paying the loan back.
Unsecured loan
This is where the loan is NOT secured against anything like a car or house. This is usually ideal for a tenant or someone who doesn’t own their own home.
Guarantor loan
This is an unsecured loan for those people who have a guarantor to validate their application. A guarantor is someone who can ‘vouch’ for their applicant and is ideal for people who have a poor credit history or have difficulty obtaining a loan because they are unemployed or are on benefits.
Mortgage
Simply another loan that is secured against (and only against) a house.
Consolidation loan
This can be an unsecured loan or a secured loan. All it does is group together an individuals total loan and credit payments into one total loan. That means you have then ‘consolidated’ your loans into one single payment. It doesn’t always work out cheaper for the individual but it does make it simpler.
That’s your lot for this week…more to follow in a few days time.
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