Get a Loan

Want an easy secured loan?

The minimum requirements for getting a loan vary with the type of loan you're seeking and the lender to which you are applying. Each UK loan company has its own requirements - and even within the same loan company in the UK, those requirements may vary from product to product and person to person. In the most general terms, the loan company to which you apply will want to be able to ascertain:

1. That you have a steady source of income
2. That you have a permanent residence, whether as a homeowner or a tenant
3. That your income or wages are high enough to allow you to repay the loan while meeting your requirements for living expenses
4. The likelihood that you'll repay the loan

Most often, a lender will find those things out by doing a credit check on you. Any UK loan company can enquire into your credit record through one of the credit reference agencies that operate in the UK. That credit search will tell the finance company if you owe money, if you've ever borrowed money before and if you repaid it according to terms. It will also list missed or late payments, and the dates on which they were missed. These are a major part of your credit history. Missed and late payments in your recent past are a red flag that will warn most UK loan company executives away from lending money to you.

A UK loan company that specializes in extending personal loans to people with low credit scores may have considerably less stringent requirements than the high street banks and lenders. If you have adverse credit - or simply low status credit - you may find it far easier to do business with a loan company in UK home loans markets and personal loans markets.

The main requirements for taking out personal loans, sometimes called tenant loans because they're often made to those who don't own a home, are similar to those for any loan. They include:

1. Full time employment or another steady source of income
2. You are paid by computerized pay slip rather than in cash or a hand written check
3. You have a bank account and
4. Your bank account accepts direct debit facilities
5. You have both proof of identification and
6. Proof of residence in the form of utility bills or other official correspondence
7. You have a telephone in your name or access to one.

Personal loans from a UK loan company offer some advantages over home loans. Since they are not tied to your home or other collateral, you aren't risking your real property if you should fail to repay the loan. This single reason makes most financial experts recommend personal loans above home loans in almost every case. There are, however, disadvantages as well.

Because the lender doesn't have an easy way to get his or her money back if you default on the loan, they're likely to be far less relaxed about a missed payment. In addition, you're likely to pay higher interest rates for your loan because the risk to the lender is also higher. Finally, because there is no collateral, most lenders won't consider personal loans of more than about £10,000, though if your credit is stellar, they may go as high as £25,000.
You can research home loans and personal loans at moneyeverything.com, a UK web site that offers advice and access to the best lenders and the best personal loans and home loans.