What are Personal Loans?

Personal loans are loans which you borrow and pay back a fixed amount every month including the interest. Depending on the lender you borrow from, the repayment period could be up to 6 years. Along with this, the borrowing amount can range between £1,000 to £35,000. Borrowing more money for a smaller amount of time often works out cheaper as the interest rate tends to decrease.

How do I apply?

Apply for a personal loan can be made easier with Simple Personal Loans. Although they are not a direct lender, they are able to help you by giving you access to one of the UK’s largest panel of lenders. This will increase your chance of getting your desired loan. To apply, visit their website and click the ‘apply now’ button. This will take you to their application form which you will fill and submit.

What can I use personal loans for?

Personal Loans can be used for anything, whether it be for a new car, a holiday or any other reasons. Although, you shouldn’t be relying on them to help you every month. That will put you in a worse financial situation in the future. When applying for a loan, you need to ensure you are able to repay the loan (including interest) otherwise it could cause it serious money problems. Linking to money problems, although personal loans can be used for anything, you need to think whether or not what you want to spend it on is worth it. Along with this, you need to consider whether or not it is dangerous and could impact your repayment, for example, gambling and addiction. If you have any doubts about whether you should spend a loan on something, you probably shouldn’t.

Can anyone apply for a personal loan?

To apply you for a loan, you must fit the criteria of the specific lender or broker, they all vary slightly but are along the same lines as one another. If you do, submit your application and your loan will be available to you if the lender or broker believe you are suitable for a loan. Lenders like Simple Personal Loans have to have specific eligibility criteria as they don’t want people to end up in debt. Many other lenders and brokers will accept every application they get, but realistically, that is not good at all.

Are there any alternatives to personal loans?

Personal loans are great for many reasons, but that doesn’t mean they are the best option for you. If you have enough time, saving up is the best way you could possibly get money. As well as this, if you save for certain periods of time using a savings account, you will earn interest. So, in the end you might actually get more money than you think! For any saving advice, visit our recent blog post, or click here.