Representative 15.9% APR (Variable)

Representative example: If you borrow £7,500 over 5 years at a Representative APR of 15.9% and an annual rate of 15.9% (fixed) you would pay £177.82 per month. Total charge for credit will be £3,169.20. Total amount repayable is £10,669.20. Minimum repayment period is 12 months. The %APR rate you will be offered is dependent on your personal circumstances. Freedom Finance is a leading credit broker and not a lender.

Reasons to choose an unsecured personal loan

Small value purchases

Unsecured loans are better suited to small amounts of borrowing as they are usually set at a fixed interest rate over a fixed repayment term.

Home improvements

A great way of providing you with a short term capital boost in order to make some much needed home improvements.

Holidays

A great way to afford a family holiday to a dream location is an unsecured loan.

Exploring hobbies

An unsecured loan can be a fantastic opportunity for you to finally get into exploring a hobby you’ve always wanted to, but just haven’t had the capital for.

Cars

Always wanted a fancy, brand new car? With an unsecured loan you have the potential to purchase your dream car outright.

You are not a homeowner

If you rent your property, an unsecured personal loan is the only option as the property is not yours to secure any borrowing against.

Building credit

Assuming you stick to your monthly repayment plan, unsecured loans can be an effective and easy way to build up your credit rating.

Best candidates for unsecured personal loans

Those with good credit ratings

Because the borrowing is not secured against an asset, the risk is left with the bank. Lending to someone with prior proof of good financial management lowers the risk to the creditor.

Those who have lived at the same address for a long time

This improves the credit score needed to obtain the loan.

Those who have job security

Candidates with a secure job have more chance of making continued repayments thus lowering the risk to the bank.

Those who have a good relationship with their bank

Existing customers often get preferential personal loans from the lender with whom they hold a current account.

Considerations of an unsecured personal loan

Although your home is not at risk with a personal loan, lenders still have the legal right to recover the money should payments not be made.

If the debt is small, but unpaid, lenders can arrange for a CCJ (County Court Judgement) to be issued against you. With further debt, bailiffs may be sent to your home to take away possessions to the value of the debt owed and sell them at auction.

In cases where the unpaid debt is high, the lender may take you to court. This is expensive, and you will have to cover these costs. In extreme circumstances, the court can rule that your home or property must be sold in order to repay the debt. As well as this, the court has the power to make you bankrupt as a result of non-repayment of  unsecured loans.

Tips for borrowing

Only borrow what you can afford to repay. Draw up a monthly budget, which will help you to manage your finances each month.

If you find that you are struggling to make your repayments, do not ignore the problem. Talk to your lender about options available to you such as extending the loan term so that the monthly repayments are lowered, or alternatively seek advice from the Money Advice Service who can be found at Money Advice Service.

Need guides to borrowing?

Our aim at Freedom Finance is to provide you with the information you need to make educated decisions when it comes to your borrowing and your money. The online financial market place is filled with conflicting, jargon-filled information about which loan product is the right one for you.

These deals may look attractive, but many of them apply only to those with an outstanding credit history. In reality, the best deal on offer might not be available to you. With our comprehensive finance guides, we aim to equip you with the know-how to make the best decisions about your borrowing and your money.

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Whether you're planning on some home improvements, replacing your car or simply getting your finances in order, a loan from Freedom Finance could be more affordable than you think. Use our calculator above to find the ideal loan for you. All quotations given are for illustrative purposes only. Credit subject to status. The rate you are offered will depend on your personal circumstances, credit assessment procedures and other related factors.