Simple and straightforward way to borrow money
Fill Those Short Term Funding Gaps
All but the most fortunate of people will not have had to have faced a cash crisis at some point in their past. Don't worry, lenders are not here to judge the financial calls that you are have had to make, that is not our job. Our job is to provide you with the information you need to make a decision before applying and before agreeing to your loan, then displaying that in a transparent way.
Most of the people applying for this type of loan are doing so to cover emergency situations. Meeting those unexpected needs, such as larger gas bills, vehicle breakdowns etc, are more common than you think.
If you have decided that this unsecured loan is right for you, we are pleased that you have come to Quick Loans for that service. Applying couldn't be easier, one application page, the decision in around 2 minutes and the money in your bank within half an hour.
Qualifying For An Unsecured Loan
As you may expect, there are some common sense basic rules that all lenders need to check before approving someone for a loan.
- Over the age of 18
- Living in the United Kingdom
- Receive some kind of income (unemployment or other types of benefits are acceptable)
Advantages of Unsecured Borrowing
In terms of unsecured loan advantages, there are plenty. We've already documented the fact that there is little risk to the borrower, but there is also the added bonus that unsecured loans are quick and easy to apply for. There is no paperwork with this finance option, meaning people who apply for an unsecured loan will have cash in their account exceptionally quickly after being approved, a big help to people who have recently entered financial difficulty and need money quickly to avoid going into unapproved debt.
The availability of unsecured loans is wide-ranging. So long as you are over the age of eighteen, pretty much anyone can apply for an unsecured loan.
In terms of obtaining finance, there is nothing better out there. It is an inclusive loan option that is easy to get, has minimal risk to the borrower and appeals to people from all walks of life.
There are two minor downsides, the first is that unsecured loan amounts tend to be smaller in value (£10,000 on this site). The second is the cost, it's more expensive to borrow without security. Because the risk is higher for the lender, lenders will charge more. For people wanting to borrow a significant sum of money, the unsecured loan route isn't for them.
For the majority of our customers, having loans capped at £10,000 isn't a problem. Our typical customer wants to borrow small lumps of cash whenever they need to bolster their account. People applying for more than £5,000 are very few, and far between, it's rare that we see it.
You really should look no further than us for all your unsecured loan needs – we've got everything covered.
Understanding What's Involved
Short-term Loans or Payday Loans, The Differences
These two different credit products may appear quite similar, but they aren't. Payday Loans are repaid in one lump sum on your next payday or the payday after if you apply towards the end of the month. Anything more than 6 weeks should not be classed as a Payday Loan. Short-term loans, on the other hand, can be spread over 12 months and be repaid in 12 instalments.
Payday loans are a lot less common than they used to be, they do still exist, but they have expanded and organically grown into higher valued amounts over a slightly longer time frame.
Defining "Short Term"
The definition of a short-term loan is: "A loan where the majority of the principal (original loan amount) loan is repaid in less than 12 months".
Technically, if just over half of the loan is repaid within 12 months, it would mean that a loan is counted as "short-term" if the full amount is repaid with 24 months.
The FCA and The rest of the lending industry consider that a loan of 12 months or less should be counted as being "short-term".
What Does Unsecured Mean?
"Unsecured" means that the borrower has not had to provide the lender with any specific asset as a guarantee that they will make the repayments on time. If the borrower goes bust or defaults on the loan agreement, the lender loses out and will have to carry the loss. In some cases, the lender will go to the County Court and try to recover their money. With loans of lower amounts (£1000 or less), it usually isn't worth it for lenders to take this course of action. Going to court incurs further costs.
The Unsecured Loan system relies on borrowers wanting to maintain a clean credit record.
Things That Make Quick Loans Different From Other Lenders
We are no longer a lender. Due to the Financial Conduct Authority's ever-changing incoherent rules, Quick Loans is no longer lending directly. We are now a broker site that compares direct lenders. We find lenders that are willing to lend to our applicants, then we arrange them in order by price and present the cheapest to the applicant. The applicant can then decide whether or not to proceed.
By doing this, we can provide the best product for each applicant and save them considerable time and effort when applying with multiple lenders before finally obtaining a positive decision.
Disadvantages of an Unsecured Loan
There are some negatives to going unsecured. It is important that you know when this type of loan is not the best option. We've compiled a small list below, following these rules could save you a lot of money.
- Buying a vehicle over £2000. Car loans that are secured on the vehicle are substantially cheaper than buying them with funds obtained via an unsecured loan. Unless you have exceptional credit history, you should choose car finance as a method of raising funds.
- Aiming to repay the money in less than 30 days. If this is your aim, you may want to look at a new Credit Card rather than a loan. Credit Card's come with up to 56 days of interest-free credit - so long as you pay it off in full when you get the next statement.