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Unsecured loans
are available from a wide variety of sources, such as Banks, Building
Societies, Finance Companies and more. Most unsecured personal
loans are arranged by lenders who use a system of credit scoring
applications. A credit scoring system is a system by which points are
given for various factors like your job, your age, time living at
address or sometimes information from your credit reference.
The problem
with a credit scoring system is that many well paid, trustworthy
consumers who have never missed a payment in their lives often find
themselves failing the credit score and consequently being refused for a
loan. If you have been in your house or job for less than 6
months or dont have a land line telephone number you are quite likely
to be rejected immediately.
The good news is that most secured
loan applications are not subject to an automated credit scoring
procedure. This means that each year many thousands of people who
have been declined by credit scoring systems are able to successfully
obtain a secured personal loan instead.
Many successful applicants for
secured loans are very often pleasantly surprised when they discover
that interest rates on secured loans are lower than on a comparable
unsecured loan. The other main advantages of a secured loan are:
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An average homeowner has more
chance of being accepted for a secured loan than an unsecured
loan. |
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As the loan is secured on your
house, the lender may be prepared to advance you a larger loan than
would otherwise be the case. |
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They can be repaid over a longer
time with lower monthly repayments. |
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Secured loans are very popular
with Self-Employed applicants who often find that they are able to
obtain a secured loan on competitive terms without the need or the
expense of providing 3 years audited accounts. |
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