All About Money do not currently provide unsecured loans. Secured loans are provided by our sister company Think Loans & Mortgages Ltd.

Unsecured loans

If you're looking to cover some larger costs that you can't afford up front - for example, home improvements, a new kitchen appliance or a family holiday - an unsecured loan could be the best way of raising the cash you need.

Think Loans do not provide unsecured loans - but we have put together some useful information for you.

What is an unsecured loan?

If you want to borrow some extra cash and repay it over the next few years, but you're not a homeowner or don't want to use your property as a guarantee, an unsecured loan could be ideal.

If you want to borrow some extra cash and repay it over the next few years, but you're not a homeowner or don't want to use your property as a guarantee, an unsecured loan could be ideal.

So if you're in need of some extra cash, but you're a tenant, living with family or simply a homeowner who doesn't want to put your home at risk of repossession, an unsecured loan could be the best way of getting the money you're looking for.

Unsecured loan and personal loan: what's the difference?

Unsecured loans are also often called 'personal loans'.

The main difference, however, is that some lenders will ask you to secure a personal loan against your property, which means it could only be suitable if you own your own home. You should always check the terms and conditions of a loan before you agree to one, to check that it meets your needs.

If you're interested in a secured personal loan, you can find out more on our 'Personal Loans' page.

Can I get an unsecured loan if I've got a bad credit rating?

If you've already done a bit of research about loans, you'll probably know that a secured loan involves you securing your home against the money you borrow - which makes it very different to an unsecured loan, which doesn't provide that extra level of security for your lenders.

As a result, if you decide to take out an unsecured loan, your lender will want to see that you're on a firm footing with your finances - so they can be confident that you'll repay everything you owe. To do this, your lender will look at your credit history, your income & outgoings and your overall financial situation.

Lenders will probably run a credit check for a secured loan, too - but the criteria for getting a secured loan would normally be less strict.

If you've had money troubles in the recent past, such as missing debt repayments or having to enter a professional solution, you may have problems getting an unsecured loan - or you may be charged a higher rate of interest for any money you do borrow.

Although this doesn't necessarily mean that lenders won't be willing to lend to you, as a general rule of thumb, the better your credit score, the better your chance of getting the loan you want.

Bad credit loan

If you've had applications for a secured loan turned down because you have a bad credit rating, you may be unsure of where to turn next. The good news is, there could be an alternative option at hand - in the shape of a bad credit loan.

As the name suggests, this type of loan is specifically designed for borrowers with a bad credit score, who may have been turned down for other kinds of loans.

Although loans for bad credit often come with higher interest rates, which could cost you more overall, they could allow you to get the cash you need, even if you've had a CCJ (County Court Judgment), entered a professional debt solution or have been recently discharged from bankruptcy.

Note that you'll need to be sure that you can repay the loan in full before you agree to one.

Is an unsecured loan right for me?

Of course, unsecured loans aren't right for everyone. If you're looking to borrow some extra cash and pay it back within the next few years, an unsecured loan could be the best option for you.

However, it's important to look at some of the alternative options first:

Secured loan

If you own your own home, there are some advantages to a secured loan that may certainly be worth considering.

If a loan is secured, it means the deal will be secured against your home or other personal assets. As a result, lenders generally consider secured loans to be less of a risk - which means they may be easier to obtain. They also tend to come with the option of a longer repayment period.

However, if you fall behind on your payments, your home could be repossessed to repay your lenders, so it's important you can repay the loan in full.

Apply for a secured loan here.

Debt consolidation loan

If you're keeping on top of existing debts relatively well, but you'd like to simplify your finances, a debt consolidation loan could be your best option.

By consolidating your debts with a loan, you'll essentially roll several monthly payments into a single one - which should go a long way to making your debts simpler to budget for and keep track of every month.

You'll also be able to arrange payments you can afford. If you want to cut the size of your monthly payments, you could agree to repay the loan over a longer timeframe (though this could cost you more in interest). On the other hand, you may want to repay the loan faster, if you feel happy making larger monthly payments.

Either way, you'll need to be sure that you can keep up with your payments until you've repaid the loan in full - or else you could face serious financial problems.

Looking for the loan that's right for you?

We could help you find the best deal on a loan. And what's more, the process could be simple: you tell us what kind of loan you're looking for, and we'll search our panel of lenders for the loan that best matches your needs.

So whether you'd like more information or expert advice, call one of our advisers on 0800 195 2910 or click here - and we could find the right loan for you.

The overall cost for comparison is 17.9% APR (typical).

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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. DEBT CONSOLIDATION MAY INCREASE THE AMOUNT TO BE REPAID IN THE LONG TERM. Subject to status. A 12.5% arrangement fee is payable on completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. Calls may be recorded.

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