Unsecured Personal Loans
The lenders on the Little Loans panel offer short-term unsecured loans from £100.
What does it mean if a loan is secured or unsecured?
In our guide, Little Loans lifts the lid on unsecured loans, as we explain what they are, how they differ from secured loans, and who could be eligible to apply.
What is an unsecured personal loan?
An unsecured personal loan allows you to borrow money without using any of your assets, such as your car or home, as security.
We’ll look at the key differences and similarities between secured and unsecured loans in the section below.
Secured vs unsecured personal loans
| Secured loan | Unsecured loan |
| You’ll use an asset as security against the money you borrow. This is often called ‘collateral.’ | You won’t have to secure the money you borrow with an unsecured loan. |
| If you do not stick to your repayment schedule, the lender is within their right to seize the asset and sell it to recoup the money they’re owed. | If you miss a repayment, your asset will not be affected, but you may be charged a fee by your lender. |
| Late and missed repayments will be reported to the credit reference agencies (CRAs), and this could harm your credit score. | Late and missed repayments will be reported to the credit reference agencies (CRAs), and this could harm your credit score. |
Bad credit unsecured loans: could I get an unsecured loan with bad credit?
You could be eligible for an unsecured loan, even if you have bad credit.
There are a number of lenders in the UK that specialise in loans for people with bad credit.
You should be aware that a bad credit loan could come with a higher rate of interest, which will increase your monthly repayments and the overall cost of the loan. You should take the time to consider how this will impact your finances.
Is it hard to get an unsecured loan?
Like any other type of credit product, you’ll need to meet the lender’s eligibility criteria and pass a creditworthiness assessment before being approved for a loan.
If you have bad credit, you might find that your credit options are limited, but it doesn’t automatically mean that your application will be turned down. The lender will need to be sure that a loan is affordable for you and that making your repayments will not affect your ability to pay for your essential outgoings, such as your rent or mortgage, food, and utility bills.
How risky is an unsecured loan?
It’s important to understand that all credit products carry risks if you do not manage your borrowing responsibly
It’s very important that you make your repayments on time and in full each month, as a late or missed repayment will hurt your credit score and could make it more difficult for you to apply for credit again if you need to. We’ll talk about the steps you should take if you can no longer afford to repay your loan further down the page.
Compare unsecured loans
Little Loans is a credit broker, not a lender. When you use our credit-broking service, we do the comparing for you. We’ll scan our panel of over 30 lenders and show you the most suitable result on your screen in around 60 seconds.
If we cannot match you with a loan today, you won’t have harmed your credit score just by checking.*
Unsecured loans: how much money could I apply to borrow?
With Little Loans, you could search for a short-term unsecured loan between £100 and £10,000.
You should never apply to borrow more money than you need or can afford to repay.
Unsecured loan repayment terms: what sort of repayment terms are available with an unsecured loan?
The lenders on the Little Loans panel offer repayment terms from 3 to 60 months, depending on the amount of money you apply for and are approved to borrow.
Can I search for an unsecured loan with Little Loans?
You can search for an unsecured personal loan with Little Loans if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and a valid debit card; and
- Have a regular source of income paid into your bank account.
Unsecured loans: how soon could I get my money?
If your application for an unsecured loan is accepted by the lender, your money could be sent the same day. However, please note that this cannot be guaranteed. Payout timescales vary between lenders, and the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
What should I do if I can’t repay my loan?
If you’re finding it difficult to meet the monthly repayments on your loan, you should speak to your lender. They will listen to your situation with empathy and talk you through any options that may be available.
You may also find it helpful to talk to a confidential, impartial organisation, such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.
*Little Loans uses soft search technology to search for a loan. A soft search will not leave a visible footprint on your credit file and will not harm your credit score. If we’re able to match you with a loan and you choose to make a full application directly with the lender, they will carry out a creditworthiness assessment, which will consist of either a hard search or an Open Banking check. A hard search will be visible on your credit file for up to 12 months, and multiple hard searches in a short period of time could harm your credit score.
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Representative example: Amount of credit: £1000 for 12 months at £123.40 per month. Total amount repayable of £1,480.77 Interest: £480.77. Interest rate: 79.5% pa (fixed). 79.5% APR Representative. We’re a fully regulated and authorised credit broker and not a lender