26 Jan What to pay attention to before applying for an unsecured personal loan
Given that a unsecured personal loan can take up to 60 months in total, it is vital to know how the application process works and what to look for before applying for an unsecured personal loan. We use the words unsecured personal loan to distinguish it from a shorter term payday or short term loan. For our purposes here’s one unsecured personal loan and personal loan are the same.
When you apply for a loan from Badger Loans, it is necessary that you provide some basic information: these are your name, date of birth, address, monthly income, expenses and bank details.
How much do you want to borrow?
When determining the amount you want to take out for your unsecured personal loan, you should think carefully about the amount you need. This is because you need to keep in mind that this is also the same amount you have to pay back, plus interest.
To help you decide, we recommend figuring out exactly how much you need to borrow, for things like direct expenses or for things like credit card bills or paying for car repairs. Why not try our affordability calculator here.?
How long do I have to borrow?
There is a lot of flexibility when it comes to unsecured loans: you can borrow for a period of 12 to 60 months.
Nevertheless, it is very important to realize that the longer the term of the loan, the more expensive it will generally be. This is because interest is added month after month.
But at the same time, a long-term loan may better suit your individual circumstances: because it can offer flexibility and it also means that you will have smaller repayments in the short term.
If you can repay early, it pays to do so: as if you could save money, because less interest accrues.
Do I meet the initial criteria for a personal loan?
The exact criteria can vary from lender to lender, but the general eligibility for a personal loan is usually the following:
- 18 years or older
- UK resident (full time)
- Stable, regular income
- Valid UK Debit Account
- Valid UK email address
- UK mobile phone account
- Can pay the monthly installments
How will I repay my personal loan?
When it comes to repaying your unsecured personal loan, this is usually in monthly installments in equal amounts so that you know exactly what you are paying monthly and can budget for it.
You should try to do everything possible to ensure a prompt refund: failing to do so will incur additional charges and may also affect your credit score. If you’re having trouble paying back, it’s worth contacting your lender directly as soon as possible so they can help you with what to do next.
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