What Kind of Personal Loan Should I Apply For?

There are different types of personal loan, principally a secured loan, an unsecured loan, and a guarantor loan. As your Chelmsford mortgage advisor will tell you, what sort of loan you will be eligible for depends very much on your circumstances and credit history.

Get the Right Advice b Secured Loans

The best way to find information on what sort of loan you should apply for is to consult your local mortgage advisor, especially if you want to borrow a lot of money. Many lenders will only consider a secured loan, especially if you want to borrow a lot of money. A secured loan is a loan thatbs generally secured against the value of your home. If you apply for a secured loan, be aware that if you fail to keep up the payments you could lose your home.

Unsecured Loans

Unsecured loans are usually for small amounts of money and will often depend on the borrowerbs credit history. It is a good idea to check your credit report before applying, just in case it contains an item or items that you dispute. If your credit history is good, then you may be able to get a loan from your bank, or even one of the payday lenders.

Guarantor Loan

Guarantor loans were common when people bought items on what was known as hire purchase. A guarantor is a person with a good financial background who guarantees the payment of your loan. In effect, if you fail to make the agreed repayments on a guarantor loan, then the person who gave the guarantee will have to repay the debt.