Loans can be secured or unsecured. Secured loans require collateral to be placed with the lender so that he has some kind of surety that he can regain his money. But then, not everyone is lucky enough to have some property that can be placed as collateral. Unsecured cash loans are the best option in such cases.
It is not that only people without property can approach the cash loans. People who do not want to risk their property or people who need money urgently can also avail cash loans. Unlike secured loans, the unsecured ones are fast as there is no need to assess any property here.
The interest rate of the unsecured cash loans may be a bit higher than the secured loans. But then, it saves the efforts and pain of running in search of arranging papers and faxing them to the money lenders.
Another problem with secured loans is that you need to have a credit score above C in case you need money. Based on your past loan repayment tracks, FICO allocates grades from A to E, wherein A is the best and E is the worst. You need not worry about the bad credit when you go for an unsecured loan.
Unsecured cash loans generally require some information: your salary and your bank statement to assess how much salary you take home each month. Once you have the documents ready, you can avail the loan which can be as high as 25000 pounds.
One of the features of the unsecured cash loans is that you can pay in equated monthly installments. As you offer the loan companies with post dated checks, you need not remember how much amount you need to pay each month.
You may need to check out the prepayment fee. Many loan companies have a prepayment charge. Prepayment refers to the process of paying off the loan before the loan tenure ends. For unsecured loans, this may result in loss of revenue by way on interest. Hence, they have some nominal charges that make up for the losses. Please check for a company that charges minimum prepayment charges.