They have lower rates of interest as the borrower is required to provide collateral or security, which is where your personal property comes in. The property has to be about the same value as the loan being taken. This is the reason why it is a lower rate of interest. Hence instant secured loans are extremely popular. Being online Small Secured Loans the documentation is online and very limited. It is kept simple and to the point. The entire process can be completed within the matter of an hour.
What might be surprising, however, is that ensuring those boxes are ticked is not as difficult as it might seem. For even bad credit unsecured loans
, there is a list of quite straight forward criteria ranging from proof of identification to proof of income, and a basic confirmation that the amount of income is enough to handle the loan.
Finally, getting bad credit loans approved without security also requires proof of citizenship. Only US citizens and legally long-term resident foreigners are entitled to apply for a loan. This is to ensure the borrower cannot simply return home, or be deported, without having repaid their debt.
Technically, the cosigner is providing security. So, even though there is no collateral, there is something that the borrower can offer to the lender. Therefore, the lender is not providing loan approval with no security and bad credit, but approval to a loan that is guaranteed.
There are two kinds of personal loans available on the market: unsecured and secured. The key difference between the two is that secured loans come with collateral, from which lenders can gain compensation should the borrower fail to make repayments. But not everyone has access to items of sufficient worth to use as collateral. As a result, approval of unsecured loans with no credit checks is sometimes the only option.
You can take out a 30 day loan if you are over 18, with a UK bank account with a debit card, and in some form of employment – temporary, part-time, full-time or seasonal.