Personal loans : Best answer to financial needs when facing multiple choices
Written by: Amanda Thompson
A car, home, holiday to favourite destination....- who doesn't
want all that! Few years back it was not so easy to plan all
that especially if you did not have the necessary funds. Now it
is! Personal loans are making possible for everyone to borrow
money for any kind of requirement. Personal loans literally
mould themselves to reconcile with the financial needs of any
borrower. "Personal loans" is the generic term for loans.
Personal loans are in fact a lump sum which is borrowed from a
bank or building society or any other lender. Good personal
loans are a rare breed. Like all better things in life it comes
with tact, patience and consistent effort.
Personal loans market is huge and so competitive that everyone
can now avail customized personal loans. Personal loans are
considered to be both secured and unsecured; however, few
lenders translate personal loans as unsecured loans. Major
characteristic of unsecured personal loan is no collateral. This
ensures that tenants also have an opportunity to apply for
loans. However, lack of security or collateral with unsecured
personal loans is interpreted as high interest rates in loan
borrowing terms. This makes secured personal loans a much viable
option for secured loans have comparatively low interest rate.
Low interest rates for secured personal loans are due to the
fact that a security is being offered for their approval.
According to the convenience and requisites of the borrower, he
can apply for either of the personal loans. Personal loans that
are secured are available for amounts of the likes of
£5000-£75,000. The amount offered as personal loans is dependent
on the collateral offered. Loan term for personal loans extends
from 1-25 years. Unsecured personal loans are provided for
amounts ranging from £5000-£25,000 with loan term of 5-10 years.
With personal loans that are unsecured the approval time is
lesser for no collateral is required to be reviewed.
Uses of personal loans in UK are endless. Personal loans can be
put to any use and there is no restriction by the lender as to
how you would use personal loans. Most commonly personal loans
are used for car purchase, home improvement, vacation, wedding
etc. Debt consolidation is another way to use personal loans for
constructive purposes. Debt consolidation consolidates high
interest rate debts into single low interest consolidated loan.
Personal loans are much cheaper than other alternatives like
credit cards, overdraft etc.
Eligibility criteria for personal loans is usually reliant on
credit score. Anyone who has ever indulged in loan borrowing has
a credit score on how he or she has performed earlier. Credit
score is a three digit number with which the creditor decides
whether to extend you loan or not. Before applying for personal
loans, check your latest credit score. Credit score ranges from
300-850. Credit score lower than 580 is considered to be having
credit problems. However, credit score below 550 will be
interpreted as bad credit by personal loans lenders.
Bad credit score, though considered a liability does not prevent
anyone from getting approved for personal loans. Personal loans
for bad credit are offered to people with any kind of bad credit
problems. Late payments, arrears, defaults, bankrupts,
foreclosures etc. are given prompt response when applying for
personal loans. Personal loans for bad credit not only provide
the finances when needed but give an opportunity to improve
credit. This certainly has long term benefits for those who have
Different personal loans lenders have different criteria.
Therefore, different lenders will offer different terms and
conditions for personal loans. Borrowers have all the choices
for personal loans. Take your time and compare loans in UK.
Comparing loans gives you the ability to make better choice.
Comparing loans is not that difficult and requires some simple
calculations. Many personal loans sites have the provision to
All this advice comes in handy after you have paid heed to the
first basic rule of loan borrowing. While borrowing any kind of
personal loans, just think over the fact - is it absolutely
necessary to borrow personal loans. Take personal loans only if
it is affordable. Eventually personal loans would be required to
be paid back. Finances are always tightening their control over
us. We are constantly in the struggle to build up funds to
provide for something or the other. There are answers around the
world for your financial need. However, the one that best suits
them is personal loans.
About the author:
Amanda Thompson holds a Bachelor's degree in Commerce from CPIT
and has completed her master's in Business Administration from
IGNOU. She is as cautious about her finances as any person
reading this is. She is working as financial consultant for
chance for loans .To find a Personal loans, bad credit loans,
Debt consolidation, home equity loans at cheap rates that best
suits your needs visit http://www.chanceforloans.co.uk
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