Frequently Asked Questions

1. What is a personal loan?

Ans. A personal loan is a loan, which is taken to meet the personal needs of a person. Personal loans are available in secured and unsecured form.

2. What purpose can I use personal loans for?

Ans. Personal loans can be used for diverse personal needs like home improvement, car purchasing, holidaying, financing education wedding etc. However; it is not recommendable to use a personal loan for day-to-day expenditure.

3. How much can I borrow?

Ans. For a secured personal loan the loan amount depends on the value of the collateral you offer. For an unsecured personal loan it is your credit score and income level that decide the amount you can borrow.

4. What is a credit score?

Ans. Credit score is a three digit number, which represents record of individual's or company's past borrowing and repaying, including information about late payments and bankruptcy.

5. Can I apply for personal loan with a poor credit score?

Ans. Of course, you can apply for personal loans even if your credit score is less than perfect.

6. How can I get a suitable personal loan?

Ans. The easiest way of getting a suitable personal loan is to apply online. Online lenders are available on the Internet. You can easily compare various loan packages and go for the suitable one.

7. Is online borrowing safe?

Ans. Yes, online borrowing is totally safe. Online lenders use sophisticated devices to ensure the safety of your password and PIN numbers.

8. Can a homeowner apply for unsecured loans?

Ans. Yes, a homeowner can apply for an unsecured loan. By taking unsecured loans, homeowners can avoid risking their home.

9. Will there be any penalty if I repay the loan early.

Ans. No, there will be no penalty if you repay the loan early.

10. Can I apply again if I have been refused earlier?

Ans. Yes, of course, you can apply for a personal loan if you have been refused earlier. Criteria of lending money differ from lender to lender. So, getting rejected once does not mean that you will be declined always.

11. What is a poor credit score?

Ans. Credit score fluctuates between 300 and 850. A credit score which is below 600 is regarded poor. Poor credit score is also referred to as bad credit, adverse credit and unimpressive credit record.

12. How long can I have to repay a personal loan?

Ans. The repayment period of personal loans depend on the type of the loan you chose. A secured personal loan provides you with a long repayment period. On the other hand, an unsecured personal loan needs to be repaid within a comparatively short period.

13. What is County Court Judgement?

Ans. County Court Judgement's in the UK and Wales are legal decisions handed down by a County Court. Judgments for monetary sums are entered on the Register of County Court Judgments, which is checked by credit reference agencies to evaluate the credit-worthiness of individuals.

14. What is home equity?

Ans. Home equity is the sum that remains after subtracting the outstanding loans from the present value of the home.