* No, if you have used a consolidation loan unsuccessfully before, to consolidate an old consolidation loan or to free up credit as well as store cards that you intend to continue using as part of your normal monthly budget.
Compared to a secured loan, unsecured loan lenders have to accept a higher risk due to they won't have anything to fall back on if you can't make the repayments. This means that they'll have to carry out creditworthiness checks to evaluate the level of risk, such as credit history, property ownership, income, size of loan and repayments and the number of recent loan applications.
After the checks have been made, the lender will either accept or decline your application. Not completely lenders evaluate the risks the same for each case, and there's fit competition inside the unsecured loan retail place. Some lenders will offer different products depending on the size of the risk they feel they are taking, and there are lenders that purposefully accept higher risk applicants. However, these lenders offset their risks by charging higher interest rates for these loans. The size of unsecured loans obtainable ranges from ?500 to ?25,000, and the repayment schedules could vary from six months to ten years.
Unsecured loans can be taken out either as a fixed interest loan, allowing you to budget for a regular payment each month, or as a variable interest rate loan. Because these vary with the Bank of England base rate, it can be more difficult to budget for these. Choosing which format is the most suitable will be a matter of personal choice, depending on your needs and personal circumstances.
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