From unexpected bills, all the way to those home improvements you have been putting off for five months, there is always an answer on how you can fund it. Personal loans are there to help you manage through times which might cost a little bit more.
What are Personal Loans?
A personal loan is when you borrow a fixed amount from a lender and pay it back with interest over a set time period — usually in fixed monthly repayments. In most cases, you will be able to choose your own repayment dates to suit you and make repayment as easy as possible.
Personal loans are also known as unsecured loans. This is because you don’t need to secure them against something valuable, like your house. Using your home as security means you could lose it if you can’t keep up with repayments.
What are personal loans used for?
You could use your personal loan for a variety of purposes, here are a few examples:
- Debt Consolidation
- Home Improvement
Despite this, you can really spend your loan on whatever you want once you have it. But, we advise that you take careful consideration when spending your loan as you don’t want to place yourself in a difficult financial situation in the future. We believe you should only apply for a loan if you have a specific purpose for it. That could be some of the reasons above or something similar. Therefore, it is not a good idea to be spending your loan for activities like gambling.
Am I eligible?
The criteria can vary for different lenders and brokers. Although, the most common criteria is always similar to the following:
- Be aged 18 or over
- Be employed or have a stable source of income
- Live in the UK or be a UK resident
- Have an active bank account
- Have a valid debit card for this account
- Hold a valid email address and phone number
How Do I apply?
After you have found the right lender for you, their application process will be simple. It is more than likely that if you are struggling to work it out, they will have their application process explained somewhere on their website.
Lenders and Brokers like Simple Personal Loans have an online application process which gives you a faster and more simple experience. For example, you could get your personal loan in a matter of hours. Whereas, some major banks still only accept loan applications through the post. This could take weeks for you to receive.
Although loans can be good and helpful, we advise you only apply for one if you need one. Other alternatives include saving money. Read more here.