What is an Unsecured Loan?

Unsecured debt is debt that is unsecured against an asset. Examples of these include credit cards, overdraft, store cards and unsecured loans.

Unsecured loans are often used as a way of raising additional funds for a personal reason, such as making home improvements, buying a new car or for debt consolidation.

Unsecured Loan or a Secured Loan?

If you are thinking about a loan then you may be wondering what the differences are between having an unsecured loan or a secured loan.

The main difference is that a secured loan requires you to secure the loan against a valuable asset, such as your home. This means that your home is at risk if you fail to keep up with the agreed secured loan repayments. So although an unsecured loan often attracts a higher interest rate than a secure loan, many borrowers prefer to take an unsecured loan because of this reason.

If you are considering your options then it makes sense that you seek professional help. Loan Application can help you on your search for a secured or unsecured loan.

We will take account of your personal circumstances and see if we can get you accepted for a loan or whether you would be more suited to an alternate financial solution, which would allow you to reduce your monthly debt repayments without the need for further borrowing.

Unsecured Loan Application

For further information about our unsecured loans, or if you wish to find out about what loan products could be available to you, don't hesitate to get in touch with our Loan Application advisors today on freephone 0800 980 4256.