Unsecured Loans
At Lending Stream, we provide unsecured loans. New customers can borrow from £50 to £800 and existing customers can borrow from £100 to £1,500. We are a direct lender in the UK and provide loans that are repaid over 6 months. We consider applications from customers with a bad credit history for our loans.
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.
Why choose Lending Stream for unsecured loans?
Trusted
Rated excellent on Trustpilot & 99% recommendation rating on Reviews.co.uk.
Convenient
Secure online application available 24/7. A decision in seconds, not days.
No early repayment fees
Repay in 6 monthly instalments. We don’t charge for early repayment.
Fast
Cash sent to your bank in under 90 seconds, if approved. It may take longer to reach your account depending on your bank’s processes.
What is an unsecured loan?
Unsecured loans are a type of personal loan where you don’t have to put up any of your assets as collateral. With a secured loan, you have to put up something valuable like your home, car or possessions as a guarantee. If you don’t pay it back, then the lender can take possession of those assets, with an unsecured loan, you don’t have to do this.
Credit cards, overdrafts, payday loans, and other short term loans are all examples of unsecured loans.
An application for an unsecured loan is primarily based on your ability to repay. This is calculated using your personal credit rating, financial status and the amount borrowed. Interest rates on unsecured loans tend to be higher than on secured loans.
How do unsecured loans work?
Unsecured loans allow you to borrow money from a lender without having to offer any assets. So you don’t need to risk your home, car, etc. Instead, the loan is based on things like your credit history, income, and financial situation.
If approved, you usually repay your loan in regular instalments over a set period. These instalments cover both the loan amount and any interest or fees.
What can I use an unsecured loan for?
Unsecured loans can be used for expenses you may not be able to cover with your savings, such as:
- Home improvements
- Car Repairs
- Emergency expenses
- Personal purchases
- Debt consolidation
What is the difference between unsecured and secured loans?
| Unsecured Loans | Secured Loans |
|---|---|
| With unsecured loans, you don’t need to offer any assets (like your car or house) as a guarantee. | With secured loans, you have to secure the loan with a valuable asset like your car or house as a guarantee for the lender. If you don’t repay they will take your asset instead. |
| Approval for an unsecured loan usually depends on your ability to repay. The better your credit score and income, the more likely you are to be approved. | Approval for a secured loan depends on the collateral you provide as well as your ability to repay. It will still factor in your credit history and income, but collateral reduces the lender’s risk. This means you may be more likely to be approved for a secured loan. |
| Since there’s no collateral, these loans may have slightly higher interest rates. | These loans often have lower interest rates because there’s less risk for the lender. |
| An unsecured loan doesn’t require collateral as a guarantee, so there’s no risk of losing assets. | If you can’t repay, the lender can take the asset you secured your loan on. |
| Student loans, personal loans, payday loans, or credit card are a few examples. | Mortgage loans, auto loans, pawnbrokers and secured personal loans are a few examples. |
How to check eligibility for an unsecured loan with Lending Stream
To apply for an unsecured loan with Lending Stream, you must:
- Have a valid debit card
- An active UK bank account
- Be a UK resident
- Should be at least 18 years old
- Should be in regular employment with a monthly income of at least £400
During the application process, you may need to show proof of your income. This is so we know you can comfortably afford the loan repayments.
Representative 1271%APR
How to apply for an unsecured loan with Lending Stream
At Lending Stream, you can apply for an unsecured loan on our website. Our application form is simple – you’ll be asked for the following:
- How much you want to borrow with us.
- Some personal details.
- Your employment, salary, expenses, and banking details.
Once we receive your application, we’ll run a credit and affordability check. This is to make sure you can afford the repayments. If approved, we’ll send the loan terms and agreement to you. If agreed and signed, we’ll send the loan to your bank account within 90 seconds. It may take longer to reach your account depending on your bank’s processes.
Representative 1271%APR
Can I really get unsecured personal loans for bad credit?
Yes, it is possible to get unsecured personal loans when you have bad credit. Some lenders specialise in offering unsecured loans to people with less-than-perfect credit scores. At Lending Stream, we understand that bad credit can happen for many reasons.
We will look at your credit score, but we’ll also look at your income and expenses. This is so we can get an overall idea of your current finances, not just your credit file. We do this to make sure you can afford the repayments on your loan.
How much can I borrow from an unsecured loan?
Different lenders offer varying loan amounts. If it’s the first time you’re applying for an unsecured loan with Lending Stream, you can borrow £50 to £800. If you’ve had a loan from us before you can apply for £100 to £1,500.
We want to make sure that you are borrowing money you can pay back, so we’ll never lend more than we think you can repay.
Alternatives to unsecured loans
Payday Loans
Payday loans are short term loans that offer quick cash. They’re usually repaid on your next payday (or over a few months). They’re meant for emergencies, providing small amounts (typically £100 to £1,000). They’re usually quick, but come with high-interest rates (and fees, depending on the lender).
At Lending Stream, we provide an alternative to payday loans.
Instalment Loans
Instalment loans give you money that you pay back in smaller payments over a set amount of time. You make a regular monthly payment until the whole amount is repaid. They’re likely to have better rates and fees than payday loans. If repayments aren’t made on time, the misses will be reported on your credit file.
Line of Credit
A line of credit is like a financial safety net. It’s an approved amount of money that you can borrow from whenever you need. You only pay interest on what you borrow, and once you repay, that money becomes available to use again. It’s flexible and can be used for various needs, like emergencies or purchases.
Guarantor Loans
A guarantor loan is a bit like having a financial helper. If you can’t get a loan on your own because of a low credit score or other reasons, a guarantor can step in. A guarantor is someone with good credit who promises to pay the loan if you can’t. Guarantor loans can be helpful to get approved for a loan you might not qualify for otherwise. If you can’t or don’t make your payments, the lender will ask your guarantor to make them instead.
Credit Card
A credit card lets you buy things now and pay for them later. You have a credit limit, which is the maximum amount you can spend. Each month, you get a bill showing what you owe. You can pay the full amount or a minimum payment each month. Interest will be charged on any remaining balance you don’t repay, which can accumulate over time. Credit cards are handy for purchases and emergencies, but they can be expensive if the balance isn’t cleared each month.
Overdraft
An overdraft is an extension to your bank account that allows you to spend more money than you have. For example, if you have £10 in your account and an overdraft of £100, you can spend up to £110. It’s useful to cover short-term gaps or unexpected expenses.
Overdrafts usually come with fees and interest.
What are the advantages of unsecured loans?
No collateral needed: When you apply for an unsecured loan, you don’t have to risk possessions such as your house, cars, and other assets.
Faster approval: The approval process can be quicker as there will be no requirement to place a value on your assets.
Flexibility: You can use the loan for various purposes, from emergencies to personal needs.
Credit building: Successfully repaying an unsecured loan may boost your credit score.
What are the disadvantages of unsecured loans?
Higher interest rates: Unsecured loans often have higher interest rates compared to secured loans.
Stricter eligibility: Lenders may have stricter eligibility requirements, including a good credit report and stable income.
Limited loan amounts: Unsecured loans typically offer smaller loan amounts compared to secured loans.
Shorter repayment periods: These loans often come with shorter repayment terms, leading to higher monthly payments.
FAQs – Unsecured Loans
How can I find the best unsecured loans?
To find the best unsecured loans, you’ll need to research regulated lenders. Compare interest rates and fees and read customer reviews. Check the eligibility criteria, application process and customer support. Balancing these factors will help you select the best loan for you.
Is an unsecured loan good or bad?
Whether an unsecured loan is good or bad depends on your individual situation and how you use it. If used responsibly and for the right reasons, an unsecured loan can be a helpful financial tool. However, if not managed well, it can lead to financial challenges.
Are unsecured loans hard to get?
Unsecured loans can vary in difficulty to obtain. It’ll depend on factors like your income, and the lender’s criteria. Approval is often influenced by your credit history. If you have a strong credit record and a stable income, unsecured loans could be easier to obtain.
Can I use unsecured loans for debt consolidation?
Yes, you can use some unsecured personal loans for debt consolidation. This can make it easier to manage your payments and potentially reduce your overall interest rate.
Can I get unsecured loans with no credit check?
Most FCA-registered companies conduct credit checks as part of their standard procedures, although it is not a mandatory requirement. The decision to perform a credit check typically depends on the nature of the services being provided and the individual company’s policies.