Loan Company In UK
What is an unsecured loan?
An unsecured loan – also known as a personal loan - is where you borrow money without having to provide security against it such as your home or car. Unsecured loans are suitable when you want to borrow a smaller amount of money.With an unsecured loan, interest rates tend to be a bit higher than if you borrowed the money as a secured loan. This is because, with a secured loan, the lender has less of a risk of getting the money back should you default on payments.
What is a prime lender?
Prime lenders are suitable for people who have an excellent credit history. Prime lenders typically offer the lowest interest rates and the lowest fees for borrowing, subject to you meeting their criteria. If you have late or missed payments on other credit within the last six years, it is unlikely that you will be accepted by a prime lender. If you do get accepted and your credit history is less than perfect, then you will probably pay a few percent more than your contemporaries with an excellent history.
What is an APR?
APR is short for 'Annual Percentage Rate' and it is a legal requirement for lenders to display the APR when advertising interest rates.It shows the true cost of borrowed money on mortgages, loans and credit cards. How it works is that the APR calculation takes into account all the costs associated with the borrowing (such as the basic interest rate, any costs you have to pay and any initial fees).Because lenders calculate APR the same way, it means that you can make significant cost comparisons between products.
What is a credit record?
A credit record is basically a record of all the credit you have had in the last six years. It shows how much you have borrowed and whether you have missed any repayments etc. A credit record allows potential lenders to see your financial history so that they can decide whether to lend you money.The data on your file is complied by credit reference agencies such as Equifax and Experian. They use information from public records (e.g. electoral roll information, court judgments etc) and from lenders and financial institutions: e.g. credit accounts, credit applications).
What is a bad debt?
A bad debt is borrowing where the money has not been paid back subject to the terms and conditions of the lending agreement. A debt tends to become ‘bad’ where it is unlikely that the creditor will be able to recover the money.Having a bad debt on your credit file will make it harder for you to borrow money in future.