We all reach the point where we fancy a change, whether it be a change of car, a change of location or even a change of the style in the kitchen. But, sadly, money doesn’t grow on trees, meaning you might find it difficult to be able to find that money in a click, so personal loans might be the answer you’ve been looking for.
What are Personal Loans?
A personal loan is a loan which people borrow to make those purchases or pay those specific bills which you don’t have enough money for. Unlike other loans, personal loans range from £1,000 all the way to £35,000 to offer you a varied choice. Lenders and brokers such as Simple Personal Loans can even offer you a repayment period of up to 6 years, giving you a stress-free experience.
What can I use them for?
Personal loans can be spent on whatever you like, hence the name. But, we advise that you shouldn’t spend them on things which put your repayment or financial position at risk. Some of the most common uses for personal loans are things like:
- Debt Consolidation
- Home Improvements
As you can see, these examples above are all expensive things which people might not be able to pay for in one go, hence the need for a personal loan. So, you might be thinking, what can’t I spend a personal loan on? Well, here are a few more examples:
- Business Use
- For someone else
Am I eligible for one?
The eligibility criteria tend to vary slightly for some lenders and brokers, so we cannot give you an example which fits every specific lender or broker in the whole of the UK. Although, as they are all quite similar here is an example which covers the majority of things which they might ask for:
- Be over 18 years old & a UK resident
- Have a bank account and an active debit card
- Be in permanent employment or receiving various allowances
- Meet our credit and affordability criteria.
- Agree to provide accurate information about yourself and your financial situation
Should I use a lender or a broker?
The answer to this question lies in the hands of you, the borrower. The difference between the two is a lender is someone who directly lends you the money and a broker is someone who finds you a lender. You might be sat there wondering why would anyone use a broker when you could get everything done faster with a direct lender. But, that isn’t always the case. If you apply directly to a lender, your application might not be accepted, meaning you have to do the whole process again to try and apply to another lender. The process of this might be ongoing, you just don’t know. Whereas if you use a broker, your application is sent to multiple lenders, meaning your chance of being accepted is multiplied. Therefore. you are more likely to get accepted.