When you’re seeking any form of credit, it’s a good idea to explore every option available to you. If you need to borrow a significant amount of money, a personal loan is one way of sourcing it. At QuidMarket, whilst we do not provide online personal loans, we can help you stay informed about what you can expect from personal loans in the UK and how they differ from other forms of borrowing.
The information we provide here will help you decide whether an unsecured personal loan is right for you, or whether a short term loan would be more suitable. Here are some of the ways in which QuidMarket can help you:
- New customers can borrow between £300 and £600*
- Returning customers may be eligible to borrow up to £1,500*
- Flexible repayment terms between 3 – 6 months
- No guarantor or collateral required
- QuidMarket is an FCA Authorised direct lender
- We follow responsible lending practices
- All levels of credit considered
- Fully transparent, no hidden fees
- Quick and easy online application
- Decisions made by humans, not computers
- Cash in your account as little as 10 minutes after approval
*Loan amounts and repayment terms are dependent on affordability checks
Ready to apply online? Simply use our loan calculator and select the amount and terms you need, then fill out our short application. We’ll give you a quick decision so you can resolve your emergency expenses fast.
What Is a Personal Loan?
Personal loans are generally available from a bank or building society, as well as some online lenders. Just like the loans that we offer here at QuidMarket, small personal loans are a type of unsecured cash loan. This simply means that the amount you borrow is paid directly to your bank account and you do not need to provide collateral to guarantee it (unlike secured loans, such as mortgages or logbook loans).
The key difference between a personal loan and a short term loan is that you can borrow a larger amount of money, and the repayment periods will be longer. Typically, an unsecured personal loan will vary between £1,000 and £25,000, to be repaid between one and seven years on average. It is important to note that the amount and terms available will vary between lenders and is subject to affordability and creditworthiness checks.
As small personal loans aren’t usually offered under £1,000, they are not ideal for those looking to borrow a smaller value, such as a £300 loan, to cover an unexpected expense. They are also not ideal if you want to repay over a shorter period than a year, such as a 6 month term.
What Can Personal Loans Be Used For?
There is a lot of flexibility in how you’re able to use personal loans in the UK. However, taking on a significant amount of debt for non-essential expenses, such as a new car or home improvements, should always be carefully considered.
As the interest rates on unsecured personal loans are often lower than those on credit cards, it is common to use them to pay off large balances. In the same way a debt consolidation loan works, this may lower your monthly repayments, especially if you are clearing multiple credit cards or other loans. However, this might not always be the case, and you may be paying back more overall, so it’s important to calculate the potential savings very carefully.
It isn’t always possible to plan for expensive life costs such as divorce and funerals. They also tend to be much more expensive than anticipated, so low interest personal loans may help you cover them.
Personal loans may be suitable for covering non-emergency home improvements. While alternatives are available, such as a home equity loan, some people prefer a personal loan. This is because it’s unsecured, which means defaulting doesn’t come with the additional threat of losing your home.
While we can offer emergency loans up to £1,500 for our returning customers, and £600 for new customers depending on affordability, if you need to borrow more than this a personal loan could be a suitable option. Common emergency expenses that personal loans are used to cover include unavoidable home repairs such as repairing a leaking roof.
While we’re lucky to have access to healthcare services that are free at the point of service, some people do use personal loans in the UK to cover medical costs. This could be due to private waiting lists being shorter, or the particular treatment you need not being available on the NHS.
Can You Get Personal Loans for Bad Credit?
When it comes to finding personal loans for bad credit, your choices will be limited. This is due to the higher loan amounts available, and the fact that there is no collateral or other security to protect lenders in the case of a default. Some lenders may perceive giving personal loans to those with poor credit scores as a higher risk, even if you would be able to sustainably afford the repayments. If you have a low credit score, the interest rates you’re offered on personal loans tend to be higher.
An alternative to the best personal loans that allow you to borrow larger amounts without risking your collateral might be a guarantor loan. This will allow applicants with a poor credit rating to apply for the loan they need by having a suitable person with good credit as a guarantor to co-sign the agreement.
If you don’t need to borrow as much and do not want to use a guarantor or offer up collateral, a short term loan could be another alternative to an online personal loan. Here at QuidMarket, we can consider applications from customers with poor credit scores if they can sustainably afford the repayments needed. If we can determine your affordability and you pass the necessary credit checks, you could be approved for a same day loan in minutes.
Compare Personal Loans in the UK
Personal loans have their pros and cons, and whether they’re right for you will depend on what you’re looking for, and what factors are most important to you. A personal loan can provide access to larger amounts of borrowing and you don’t need to provide collateral or find a guarantor for them.
However, it can be much more difficult to be approved for them, especially if you have bad credit. It can also be tempting to borrow more money than you need to or split the repayments over a longer term than necessary. This can lead to paying more interest unnecessarily and will increase the total cost of your loan.
As a fully transparent, responsible lender, at QuidMarket we want you to be confident in your decision – whether you choose one of our loans, a personal loan, or something else entirely. If you need any more information about our unsecured loans, you’re welcome to contact us and we’ll be happy to help. If you are ready to apply, just use the sliders above and start your application today.
We provide an alternative to personal loans that are a form of unsecured borrowing. Through us, you can apply for an instant loan to help you cover a financial emergency, especially if you do not have the available credit or savings to help you. As we are a direct lender, we can provide loans up to £1,500 quickly if you are a repeat customer, or £600 for a new customer, and can do so completely online, giving you cash in minutes when you need it.
Most personal loan lenders will only provide these for amounts of at least £1,000 due to the fixed interest rates applied and the longer term repayment lengths available. As borrowers use them primarily to cover large purchases such as a new car, home improvements etc, they offer higher amounts than other types of loans.
If you require a loan for less than £1,000, a short term instalment loan might be a better option. You can borrow smaller amounts and choose flexible repayments over a shorter period, if this is what you can afford. We can help you apply for a loan from £300 up to £600 for new customers, and between £400 and £1,500 for repeat customers, for short term use to cover a financial emergency.
If you have poor credit and are looking for a personal loan, some lenders may not be able to help, for example, traditional banks. They may have a set criteria and use automated lending processes to provide loans only to those with good credit. An alternative to this is guarantor loans if you want to have someone co-sign the agreement, however, there are bad credit loans available that could help. This type of loan wouldn’t require a guarantor and will consider you as a sole applicant, as long as you can afford repayments.
A credit check is a vital part of the lending approval process and ensures lenders follow responsible lending guidelines. If you are concerned about having a low credit rating and being declined as soon as a lender performs a credit check, you should consider finding lenders who can help with your circumstances. At QuidMarket, we can provide loans for poor credit, so even though we will perform a check of your credit file, this won’t be the only deciding factor. We will assess your affordability and whether you can sustainably maintain the repayments required, so you still could be successful.