Unsecured or Tenant Loan Application

Important Security Note: Quick Loans Direct act as a Loan Introducer. WE DO NOT call loan applicants so if you get a call from anyone calling themselves 'QuickLoansDirect.co.uk' then it is a bogus company and you should avoid speaking with them.

Unsecured loans are where you do not have (or don't want to offer) a house to act as security against the loan. So Tenants are only allowed to take out Unsecured loans.

You can apply for an Unsecured or Tenant loan up to £25,000, if you fit the following criteria.

Loan Criteria
1. UK resident & 18+ years old
2. Employed full time & paid via BACs
3. Printed wage slips or audited accounts
4. Earning more than £500+ per month
5. You are not Bankrupt or on a Debt Management program

How Unsecured Loans Work
When you borrow money, a loan is considered as “secured” if the lender is given collateral, usually in the form of a property. This allows your lender some security and will give them the ability to recover their money in case you are not able to pay it back. Meanwhile, unsecured loans are those given out without your lender taking in any collateral. You may be wondering, unsecured loans compared to secured loans, which one is better? We will quickly look at some of the common characteristics of these loans to help you make better decisions.

If you want to borrow a large sum of money, a secured loan may be your best bet since cheap unsecured loans are not easy to find these days. Lenders generally require you to have a perfect credit history before they can give you a competitive rate on any large amount of unsecured loans. However, if you are only looking to borrow less than £ 10,000 then unsecured loan may work out better since it requires much less paperwork and can be processed at a much faster rate.

The interest rate is another main difference between these two types of loan. Secured loans generally carry interest rates between 5% and 40% APR (Annual Equivalent Rate) while unsecured loans may have rates of between 6% and 2,500% APR. Your credit history is the main criterion that determines what interest rates you will have to pay on unsecured loans. On the other hand, secured loans will take into consideration the value of your collateral as well. The higher value your collateral can provide, the lower interest rates you will have access to. Overall, you will pay higher interest rates on unsecured loans compared to secured loans.

Remember that other than interest rates, there are be other fees and charges involved which you may have to pay. For example, secured loans may require you to pay an initial broker fees due to the amount of legal paperwork that needs to be processed when your security is assigned to the lender. These fees vary and its cost can be high, therefore you should always take it into account when considering both types of loan.