Good financial days are temporary as there is no guarantee involved in them. At some point in time, you have to confront the bad financial times that can come in different ways, such as unemployment, sudden medical emergency and many more.
You will have the capability until you earn sufficient income where there is a possibility of keeping an emergency fund. You can use it for the financial crisis, as mentioned above. My question here is – will that be possible all the time? What happens when you lose your full-time earning?
In my opinion, it is not possible all the time. Sometimes, you struggle with your savings as you have kept them for future endeavours. At this point, you have to look towards the external funding sources. When it comes to those sources, the lending market of the UK is perhaps the best destination for you.
Here, you will have plenty of options for personal loans to obtain. Personal loans are the most applied funding means in the UK, as they can be used for any purpose. By looking at their superiority and preference, many direct lenders are now bringing varieties of these loans just to give maximum alternatives to the aspirants.
Therefore, I have set my purpose of writing this blog to make you familiar with several forms of personal loans, which applying for has become your necessity nowadays.
Which are the best personal loans that you need more often than not?
Now, I have introduced my topic of discussion here. Now, the time is to explain those top 7 personal loans that have been in the trend recently. You can go through their explanation and ask me in the comment section if you want to have any queries regarding them. Let us start.
- Loans on benefits
After the pandemic, the most struggling class was unemployed people. They struggled a lot to carry on with their cash flow due to job loss or furlough. Managing unexpected expenses has been challenging for them. Sometimes, they cannot handle regular expenses.
Of course, the government has done a lot for them by granting them various unemployment benefits. Still, they need more funding sources. Personal loans in the form of benefit loans from a direct lender have come as a saviour for them.
Under these loans, unemployed people can get loans on benefits, and the lender has no objection to accepting those benefits as the repayment way. You can apply for them, fetch easy funds and repay comfortably with the help of these benefit loans.
- Unsecured loans
Perhaps the most popular form of personal loan is the unsecured loan. These are like short-term loans where the aspirants have the leverage of not submitting any asset as the loan collateral. However, the lenders will be at risk, and therefore, they keep interest rates on the higher side.
Like personal loans, they are also for multiple purposes because they are available quickly with few obligations to follow. Moreover, some lenders also offer these loans with no guarantor, as they allow loan approval on the applicants’ recent affordability.
- Loans for bad credit
My third choice of personal loans is bad credit loans. Yes, these are more specific than others, where people with lower credit scores have a significant advantage.
Before explaining them, I want to inform you that these are high-interest rate loans and are primarily available from online lenders. However, with better research, you can easily find a lender who is offering loans at the most competitive rates in the market.
The primary function of these poor credit loans is that the lender considers the current income and affordability in place of past credit mistakes. If your recent handling of payments is good, the lender feels safe to fund your needs. Some people apply for these loans to improve their credit scores.
- Payday loans
My next finding of top personal loans is a payday loan. In fact, after personal loans, these loans are the most applied borrowing option by every class of borrowers. Whether they are unemployed or employed, student or retired, having good credit or poor credit, or self-employed, everyone has taken advantage of these loans.
Some lenders are also offering payday loans with no credit check option. However, it does not mean that your credit score will not be checked. A credit score check will be done in a soft manner with no indication in your credit report. It is because hard credit check often creates hassle in loan approval.
- Home improvement loans
Home improvement has become everyone’s need, not only to beautify your home but also to increase the property’s value. However, it demands sufficient funding backup, which you can get with bespoke offers on home improvement loans.
These loans have proved to be a better option than remortgage as you can use them for any type of improvement. In addition, you can have a chance of better interest rates too than a remortgage. These loans are also called home renovation loans or loans for home remodelling.
- Logbook loans
Personal loans can be used for several purposes. Now, I am saying that you can utilise them in various forms like logbook loans. These are the loans where you can get the funds by keeping your car as the loan collateral.
It means you are getting cash against your car and handling any financial emergency. However, you will be at risk of losing your vehicle if you default in between. The lender has the right to sell your car to another party if you do not repay the loan on time.
- Mortgage loans
Last but not least, mortgage loans also fall under the category of personal loans. These are like long-term loans and are available for a larger amount for a longer duration. The interest rates will be lower and monthly instalments are easily manageable from your monthly income.
However, the overall interest rates will be higher since the loan term will stretch up to 30 years. Recently, people in the UK have been demanding to increase the mortgage term up to 35 years. With that, they can have much reduced monthly loan instalments and better manage their regular expenses.
In a nutshell, you have plenty of options available on personal loans. Still, they can only be useful if you avail them from a reliable lending source. I do not hesitate to name 1onefinance here, as it has a proven record of helping thousands of loan aspirants in their critical financial times.
The lending company accepts only online applications, making it much easier for you to get instant funding at competitive interest rates. For further queries, please keep commenting. I will try to answer them.
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.