What is a personal loan?
Simply put, a personal loan lets you borrow a one-off lump sum that you then pay back over a set number of years. A personal loan, otherwise known as an unsecured loan, is a nice way to meet those large expenses you might not be able to afford otherwise. “Unsecured” means that you won’t be borrowing the cash against something valuable, like your car or home.
So you won’t have to worry about the lender taking your assets if you fall behind on the payments! This makes it less risky for you when you’re borrowing money, but it also means a personal loan will probably have higher interest rates than other types of loan.
The loan application process
What you'll need to apply for a loan
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Why use Confused.com and Monevo for personal loans?
We’ve teamed up with the personal loans experts Monevo to offer the best possible deals on unsecured, secured and guarantor loans. With Monevo’s loan service you get:
A free service with no obligation to apply once you’ve got your rate
Eligibility checks with no impact on your credit score - lending partners run a soft search on your credit file which doesn’t affect your score
If you’re thinking of applying for a secured loan: THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you’re thinking of consolidating existing borrowing: YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
Looking for car finance?If you’re not sure how best to fund your car, it may be worth looking at the different types of car finance available. These include:
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