Unsecured loans from a high street lender
Home owners will sometimes find it easier than tenants to obtain an unsecured loan. This is often due to the credit scoring nature of most high street lenders. The problem is that the computer, more often than not, says “No”. If you don’t have an impeccable credit history you should beware.
- Applying to many high street lenders will result in you having multiple credit searches made against you which makes it harder to get accepted if you apply again in quick succession.
- If you are declined by a high street lender you are likely to be passed to another company which can cause further credit searches and create unsolicited calls.
If you are declined or think you are likely to be declined, don’t keep applying without considering the impact on your credit file or the alternatives.
Unsecured loans – other options
If you are a homeowner and don’t qualify for a high street unsecured loan, there are many alternatives. However the rates could be very high and you may be asked to pay some upfront fees. As a homeowner, you may also wish to consider secured home owner loans which may be more competitive and more accommodating to your circumstances. We recommend you talk to us first so you can make a comparison.
Unsecured loans to be wary of
Many customers who apply online find they are passed to unsecured specialists who charge an upfront fee. These companies can be very persuasive and have access to specialist lenders but many are more interested in the fee than getting you a loan. Please take care.
Pay day loans / cash loans. – these lenders offer a good service to customers who need a small amount of cash fast and can pay it back in a week or so. However, be sure to shop around and make sure you can pay it back. We hear of many customers who get into a cycle of taking out pay day loans to pay off the previous loan. Whilst borrowing £500 and paying back £550 in a week or so may solve a short term problem, the annual interest rates are often much higher and it can be hard to keep raising the interest to break the cycle. If you can borrow via any other means, it is likely to be far cheaper.