Learn everything you need to know about unsecured personal loans.
A Guide to Unsecured Personal Loans
A Guide to Unsecured Personal Loans: FAQs
Are Unsecured Loans Harder to Get?
With an unsecured loan, you’ll generally pay more interest than a secured loan. However, you don’t put your property or any other assets at risk when you take out an unsecured loan. An unsecured loan can be harder to get if you don’t have a good credit rating. Your credit history determines your creditworthiness, potential borrowing amount and interest rates.
How Much Money Can I Borrow When Applying for a Personal Loan?
The borrowing amount of a personal loan usually ranges between £1,000 and £25,000. Some lenders may allow you to borrow up to £40,000. If you’re looking to borrow a more significant amount of money, consider looking at secured loans.
What is the Minimum Credit Rating for an Unsecured Loan?
Most lenders will require you to have at least a good credit rating. The score may vary depending on which credit reference agency you use to see your credit score. Typically, a good credit score falls between 604 and 627. If you’ve got a bad credit score, consider improving it before applying for an unsecured loan or looking at other potential finance options.
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