Personal Credit: A Great Financial Support For You
- By:Tess Ocean
Personal credit can be availed so that you can easily meet your personal expenditures. The borrowed amounts can be put to any personal purpose, such as wedding, holiday tour, home improvements, car purchasing or debt consolidation.
Personal credit can be broadly divided into two categories:
If you are opting for secured personal credit, then you will be required to pledge your asset as collateral. With secured option, you can avail larger amount and that too with lower interest rates. You can avail an amount ranging from £5000- £75000 for a period of 5- 25 years. If you do not want to attach collateral with the loan amount, then you can opt for unsecured option. You can borrow an amount ranging from £1000- £25000 for 6 months to 10 years. But the interest rate will be higher in unsecured personal credit.
You are offered personal credit in fixed and variable form. A fixed interest rate means that for the particular amount you borrowed, you are required to pay a definite amount of interest throughout the term. If your lender uses variable rate, then the rates will differ as it depends upon the market condition.
Even the ones with bad credit records like, CCJs, IVA, people with defaults, arrears, and bankruptcy can also avail personal credit provided they are able to convince the lender of their repaying ability. But they will get the loan at a higher interest rate.
In order to get the best possible deal you can first collect the loan quotes from various lenders. The online lenders also offer personal credit at competitive rate of interest. You can compare the rate quotes and then you can choose the best option for yourself.
Personal credit helps you arrange money for yourself. You can easily pay back your personal expenses with personal credit.
About the author:
Tess Ocean has been associated with Online Personal Loans UK. Having completed her Masters in Finance from Yale University, School of Management. She provide useful advice through her articles that have been found very useful. To find Personal Credit, online personal loans, bad credit personal loans, secured personal loans visit