Unsecured Loans

How to use an unsecured loan...

An unsecured or personal loan - both terms refer to the same type of loan - enables you to borrow large sums of money for almost any purpose.

If you have a good financial history and feel confident that you can make the repayments, they can be the perfect way to stretch your budget to accommodate for that one off big purchase.

Making the most of your loan:

Get the right loan for you!
As with most loans, what's right for one person isn’t necessarily right for another. There are a whole host of lenders offering unsecured loans, and although broadly similar, they are all likely to have slight differences, which may or may not favour you.

Fortunately, ChooseMoney has amalgamated a range of unsecured loan lenders and their rates right here, to help you decide what's best for you.

Don't borrow too much
Chances are, that years of careful spending and repaying has got you into a good enough financial position to be approved for an unsecured loan. Don't ruin your ratings by taking out more than you need.

Make sure you calculate how much you need to borrow and not how much you want to borrow before agreeing to an unsecured loan.

Things to watch out for:

Redemption penalties
As mentioned in the last section, many lenders will charge you for repaying your loan before the term expires.

If you think that its likely you will complete your payments early, ensure that you go with a lender that allows early repayments, even if the APR is slightly higher.

Compare unsecured loans