We all have those moments throughout our lives when we feel like we might need a little bit of extra money to help us through the month or even the year. Or even those moments when we are wishing we had enough money to purchase the newest phone or treat ourselves to overdue home improvements. Trust us, you’re not the only one who has these thoughts, even your friends do! But, you don’t have to think twice once you know about personal loans.
What are Personal Loans?
A personal loan lets you borrow a fixed amount of money over a fixed term. Usually, lenders offer unsecured, personal loans up to £25,000. Along with this, the repayments are usually spread over a period of between 1 and 6 years. Although, certain brokers and lenders such as Simple Personal Loans will offer you up to £35,000 to show that they stand out in the industry.
Generally speaking, this type of loan is unsecured. Meaning you’re not borrowing the money against the value of one of your possessions.
What can I use Personal Loans for?
They are just as they sound, personal loans can be used for whatever you like, within reason. The most common purchases people tend to make once they have received their loan are:
- Home DIY
- Debt Consolidation
We advise that you only apply to borrow a personal loan if it is for something which is essential to you. This is because they do come with a risk, especially if you find yourself in a difficult position, struggling to repay.
Should I get a Personal Loan?
When it comes down to making a decision on whether or not a personal loan is right for you, you need to think smartly. They can be useful, given the right circumstances. You should ensure that it is the best decision for you and that you are borrowing for the right reasons. As well as this, you should be positive that you will be able to repay your fixed amount every month so you don’t get up in a difficult situation in the future.
We advise that if you are able to save up the amount of money that you are looking for and that is convenient, you should. Therefore you have no risks attached. Read more about saving and managing your finances like a pro here.
Can I get a Personal Loan with bad credit?
Not every lender accepts applications for people who have bad credit. If you have bad credit and are wanting a loan, your best bet is to apply through a broker. A broker is able to send your application to multiple lenders who accept bad credit loans. This not only improves your chances of getting accepted but it also saves you a lot of time. So, overall, yes you are able to get a loan with bad credit.
Is a personal loan better from the bank?
The main difference between loans from the bank and loans from a lender or broker is the time it takes. Usually, loans from the bank can take a lot longer than loans from lenders. Some applications can take weeks, if not months to be processed. Whereas, if your application is approved from a lender, you could receive your funds the same day.