What are unsecured loans?
- An application for an unsecured loan is primarily based on your personal credit rating, financial status and the amount borrowed, and you are not required to offer your home as security for the loan. You are of course legally bound to pay back the loan as agreed
- The top three reasons people take out an unsecured loan is to consolidate debts into one possibly less expensive loan, to carry out DIY projects at home or to purchase a car
- When deciding whether or not to offer you an unsecured loan, the lender will look at your personal credit history and assess how much of a risk is involved in lending you money. The rate of interest you are offered will reflect that level of risk