Unsecured Personal Loan
An unsecured personal loan is a personal loan that you can receive without security to guarantee it. With secured loans, your lender secures the loan against one of your assets, for instance, your car or house, which enables them to recoup their losses if you fall behind on the loan repayments. With a loan that is unsecured, the lender has no such recourse if you fail to make the repayments. Of course any default on the loan is not a good outcome as the lender will probably pursue the repayment of the loan via legal proceedings, plus failure to repay will have a significant impact on your credit score.
Unsecured personal loans are offered by a wide range of lenders including major banks and credit unions through to building societies and most recently peer-peer lenders. Although the lender will probably ask for you to state the reason you are seeking to borrow the money, you can generally use unsecured loans for any purpose: debt consolidation, home improvement, car purchase, a wedding, or even a holiday. To estimate your monthly repayments of your personal loan try our relayment calculator below, simply enter your loan amount and preferred period, the estimated monthly repayment for each of the unsecured loans featured in our comparion table will then be calculated, to rank these simply click on the "monthly repayment" column header.