FAQs

A secured loan is a loan you can take out that’s tied to an asset of yours as security. For example a mortgage is a type of secured loan, and the asset would be the house you take the mortgage out on – when you repay the loan the house is yours, but if you don’t repay then the lender could seize your house.
An unsecured loan loan isn’t tied to any collateral, and as a result you normally need at least a fair credit score to qualify. There is also often a maximum amount you’ll be allowed to borrow.

You can take out a loan for a number of reasons, ranging from home improvements or education to big purchases like buying a car – however it’s unlikely you’ll be approved for a loan to cover you day-to-day costs.

The amount you’ll be eligible to borrow will depend on your personal circumstances – if you have a poor or limited credit history, you may not be able to borrow as much as someone with a good credit history.

The length of your loan can vary depending on the type of loan you take out and the provider you choose, but it could be anywhere between a year and ten years. Taking out a loan for a longer period of time may reduce your monthly payments, but you may end up paying more for the loan due to interest payments.

Different lenders and different types of loans will have varying requirements, but in general whether or not you qualify will depend on your personal details and your credit history. However you can always compare loans on MoneySuperMarket – all you need to do is answer a few questions about the loan you want to take out and you’ll be given a tailored list, which you can sort by interest rates and the likelihood of your application being accepted.