Personal loans encompass a range of credit forms from payday loans to vehicle finance and debt consolidation loans. These versatile loans can offer a small amount of money.
As prices for basic needs and necessities seem to increase but salaries remain low or unchanged, many citizens need to rely on personal loans to make ends meet. Personal loans have caused a lot of debate over the years due to their easy availability and convenience.
Personal loans are very versatile as they can be used to fund just about anything from home renovations, settling an overdue account or paying for your wedding.
Apply for an online personal loan through our quick online loan application.
What a personal loan can be used for
Unlike a business loan or a home loan, personal loans have no restrictions attached to them and can be used for anything that you need.
Another great feature of a personal loan is that you don’t need to supply any form of collateral in order to secure your loan, this is known as an unsecured loan. This type of personal loan is ideal for those that may not have any assets in order to secure their loan.
Tips on applying for an online personal loan
To have your online personal loan approved is very easy with very few criteria that need to be met. As long as you demonstrate the ability to repay the loan there is no restriction on the amount of money that you may borrow.
Online personal loans allow clients between 1 and 5 years to repay the loan, depending on the loan amount. Your credit score will have an influence on whether or not your online loan application will be successful or not and affect the amount that the loan will cost you overall.
The higher your credit score is the less interest you will be charged. This is why it is crucial to compare loans in the UK before making a formal application.
Pros & cons of personal loans
Personal loans can be used to increase your credit score and help you out of a debt if used correctly. There are many advantages and disadvantages associated with online personal loans.
Advantages of online personal loans include:
- Ease of application. Applying for a personal loan online is very quick and easy
- There is no need to complete any paperwork as the entire process can be completed online
- No restrictions on how the money needs to be spent
- You don’t need to risk your assets as collateral
- Apply for any amount as long as you can repay the loan instalments
- Flexible loan terms that can be customised to suit your budget
- Some personal loans are offered as a revolving loan with an open line of credit
- Use an online personal loan for debt consolidation in the UK
The main disadvantage of an online personal loan is the high interest rate. Lenders take on all the risk involved as there is no need for you to supply collateral, so in order to protect their investment in the event that you default on the loan they charge a much higher interest rate.
This can sometimes mean that an online personal loan can cost a lot more than any other type of loan.
Ways to make your online personal loan work for you
There are many different lenders that offer online personal loans that are accessible through easy online loan application forms. Completing the quick online loan application will only take a few minutes and your will receive your outcome very quickly.
Most individuals that apply for a long or short-term loan do so because they are short of funding and need to cover their monthly shortfall or pay for an unforeseen expense.
These expenses can range from anything such as paying for car repairs, paying for an overdue bill or needing to upgrade your current laptop.
Repay your online personal loan quickly
Most lenders don’t charge penalty fees or other charges for repaying your loan early. If you are able to make extra payments and settle your loan more quickly you will save money on the interest rate and help to improve your credit score.
It is important to understand what interest rate you are being charged. The longer it takes you to repay your online personal loan the more money the loan will end up costing you overall.
Set up a debit order on your account that runs automatically to ensure that you never miss a payment. If you are diligent with your payments and never miss one, this will reflect positively on your credit report and you could qualify to borrow even more money in the future.
Use your online personal loan for debt consolidation
Apply for a personal loan in order to manage your debt more efficiently. Many people have come to relay on store accounts and credit cards in order to make ends meet, it’s very simple to charge everything you need to your credit card but the problem comes in when your credit card bill is due.
Most individuals live above their means so they don’t have sufficient cash to cover all of their expenses and this can cause them financial stress and sleepless nights.
Don’t drown in your debt
Using a personal loan in order to consolidate your debt into one easily manageable loan could be beneficial to you if you find yourself in this situation.
If you have more debt than money to manage it, a personal loan can be used to pay off your existing debt so that the only payment that you need to worry about is that of your personal loan.
Keeping track of your loan agreement
When deciding how to make your personal loan work for you it is important to weigh all the pro’s and con’s involved and know exactly what you need from your online personal loan. Always only borrow as much money as you can easily afford to repay and be responsible by making your loan payments and honouring the loan agreement.
When you need cash and you don’t have any collateral in order to secure your loan then you should apply for a personal loan online, take into account the interest rate that you will be charged and consider the cost of the loan in total.
Compare lenders that offer online personal loans in order to save and find the personal loan that best suits your needs be it a payday loan or a peer-to-peer loan. Complete your quick online loan application today so that you can sleep well tonight.