31st March 2022

Unsecured Personal Loans FAQ

Large unsecured personal loans are sizeable loans not protected by collateral. You don’t have to provide any asset like your home or car as collateral to get approved for large unsecured personal loans.

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Unsecured Personal Loans FAQ
Unsecured Loans

Large unsecured personal loans are sizeable loans not protected by collateral. You don’t have to provide any asset like your home or car as collateral to get approved for large unsecured personal loans.

The lender must trust your intention to repay and base the loan’s approval on your affordability or ability to repay the amount you borrow.


How Do Large Unsecured Personal Loans Work?

Large unsecured personal loans involve a contract or agreement between you and the lender. You’re allowed to borrow a large lump sum of money on the basis that you agree to repay within the promised timeframe.

You get a fixed amount of money when you’re approved and pay the money back plus interest over the chosen term until you settle the loan.  You’ll get a fixed interest rate for large unsecured personal loans and will usually repay in monthly instalments.

You can see the current and best rates on the Times website, allowing you to easily compare rates.

Lenders will look at your monthly income and expenses to determine affordability when assessing your application. They’ll also consider your credit history to determine how you handle your finances and your likelihood of repaying the loan.

A large unsecured personal loan is your best bet if you’re looking for a substantial amount of cash that you can repay by spreading the cost through a series of manageable monthly instalments.


Features Of Large Unsecured Personal Loans

Easy Online Application

You can quickly borrow large unsecured personal loans online from anywhere in the UK. Most lenders allow you to borrow through a quick and easy online application process. The entire process takes place online, from requests and approval to funding.


Quick Approvals And Payouts

Applications for large unsecured personal loans are approved quickly within an hour because you don’t have to prove ownership or the value of an asset. You get quick approval and feedback online, and some lenders offer same-day payouts.


Zero Risk to Your Assets

There’s no risk of losing your valuable assets in a large unsecured personal loan since you’ll not use any collateral to secure the loan. Your property cannot be seized and sold to recover the outstanding loan balance if you default.


High Loan Amounts

With large unsecured personal loans, you can access a more considerable lump sum of cash than typical short-term unsecured loans like payday loans. Your credit score can influence the amount and terms you get. A good credit score will enable you to access the amount you need without restrictions or stringent limits.


Uses of Large Unsecured Personal Loans

Unlike some secured loans that must cover particular expenses like buying a home or car, you can use large unsecured personal loans to cover a wide variety of financial needs. Common uses include:

  • Home Improvements

One great way to invest back into your property and improve its value and curb appeal is through home improvements. However, they can be pretty costly. Large unsecured personal loans can help you get the finances you need to cover the costs of your desired home improvement project.

However, as explains with regards to home improvement loans “keep in mind that each lender will use their criteria when assessing your application, and some may view you more positively than others.”

Whether it’s a new kitchen, bathroom, extensions, conversions, maintenance, or repairs required, large unsecured personal loans can help you fulfil your needs.


  • Debt Consolidation

With debt consolidation, you combine multiple high-interest debts into one. A large unsecured personal loan can help you consolidate all your debts and cover the total amount, so you’re only left with one lender to repay. Instead of dealing with multiple lenders every month, you’ll only be making a single repayment.

Large unsecured personal loans can help you get a breath of fresh air if you’ve been struggling under the weight of multiple high-interest debts. It will drastically reduce your monthly expenses and make it easy to manage your bills.


  • Personal And Business Financing

Large unsecured personal loans can help you finance small and large personal financial needs and purchases. You can buy or achieve what you need or desire now and pay later through affordable monthly repayments.

They can help you buy a car, home, land, advance your education, finance your dream wedding, or simply take a much-needed vacation.

Businesses also require a cash injection from time to time. Large unsecured personal loans can help you cover current and future business financial needs like stock, equipment, resources, new premises or expansion.


Large Unsecured Personal Loans with Bad Credit

If you’re worried that your bad credit score will affect your unsecured personal loan application, worry no more.

A bad credit score is no longer a financial death sentence but only a hiccup when you need a loan. Although it can be challenging to get large unsecured personal loans with bad credit, it’s not impossible.

A loans adviser can provide guidance and connect you to understanding lenders specialising in giving large unsecured personal loans to borrowers with bad credit in the UK.

Instead of focusing on your past financial troubles, they only consider your current situation and affordability based on your monthly income and expenses.

With easy monthly instalments, you can comfortably make repayments on time, which will reflect positively on your credit score. Your credit score will improve and show lenders you’re a reliable borrower.  


What Happens If You Don’t Repay Large Unsecured Personal Loans?

Although you don’t risk losing any of your assets when you fail to repay or default on large unsecured personal loans, you’ll still face various consequences.

The default or missed payment will be included in your credit report for up to six years, impacting your ability to get credit in the future. You’ll also face penalties and fees for missed payments.

Lenders also have a legal right to try and recover their money in some way when borrowers fail to repay. It includes filing court actions against you, like arranging a county court judgement (CCJ) that can appear in your credit record for six years unless you repay the total amount in a month.


Can I Get a Large Unsecured Personal Loan When Unemployed?

Yes. Not being ‘formally employed’ does not disqualify you from accessing large unsecured personal loans. Many understanding lenders in the UK welcome all kinds of borrowers and accept all income types.

You may be unemployed but still get some form of income from part-time work, freelancing, benefits, trust proceeds, dividends, child support and many more.

As long as you can afford to repay the loan with income from any source, you can qualify and get approved for large unsecured personal loans.  

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