It's not easy coming up with a few thousand pounds when you've seen the ideal new set of wheels on the forecourt. People, quite wisely, don't keep that sort of money lying around under the mattress. It's far more likely that a loan might be needed and this article aims to show you how.



Tenants can raise money relatively quickly using a facility called an unsecured loan or sometimes known as a personal loan. It is unsecured because you will not be using any collateral (normally your home) to guarantee the loan unlike homeowners who have a mortgage, who could also opt for a secured loan.

There is some good news and some bad news that comes with this. The good news is that unsecured loans are quicker to complete and raise the money through than secured loans. For a start, you won't need to have an independent valuation done on your property. This is important in a secured loan application because, dependent on a number of other factors, the lender will allow you to borrow up to a certain percentage of the value of your home. The valuation can therefore sometimes be pivotal in whether you can raise the money in this way or not.

Tenant loans do not suffer the same problems but because the lender is not guaranteed of getting their money back in the event of a default on your loan repayments, they may sometimes be considerably more choosy about who they lend to and how much. They will always prefer to run a credit check on you. This is standard procedure and all it means is that the lender will ask for your permission to access your credit file through one of the big credit reference agencies such as Experian or Equifax, where they will be able to see how many times you have applied for finance, your repayment history on the credit you have now and have had in the past, and whether you have missed any repayments, defaulted or have gained any CCJ's (County Court Judgements) along the way.

The lender will also probably want to confirm your ability to repay the car loan and in so doing, they will look at your income and at your regular monthly outgoings. The difference between the two will be your disposable income and this will be used as the means to repay the loan to the lender.

Unsecured loans, tenant loans and car loans are the same in terms of how easy they are to apply for. If you went to the bank however, you may need to make an appointment that may mean time off work, which is not always convenient for most people. With an online finance broker however, you have a number of advantages: you can apply from the comfort of your own home at a time to suit you, a loan consultant will call you within minutes and provide a decision in principle straight away and you will have access to a much wider number of lending products to suit your circumstances than with a single product provider like a bank.

Car loans can be applied for immediately and the money can be with you in days allowing you more time to find the perfect metal to be seen in! What are you waiting for?

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