MyFinances.co.uk
News feeds Free newsletter

All the latest personal finance news - helping you make the most of your money

Loans glossary

Unsecured Loan

An unsecured loan is a loan that is secured on nothing more than the promise of the borrower to repay it.

To try and prevent borrowers defaulting on loan payments lenders use credit scores - a history built up over time of how good consumers are at paying off debt - to decide whether or not to lend money, how much money to lend, and how much interest to charge on the loan.

The most common form of unsecured loan is a credit card.


Related articles 


Disclaimer:
myfinances.co.uk is not authorised to give advice under the Financial Services and Markets Act 2000.

Terms:
By using this site, you are deemed to have accepted our terms of use.

myfinances poll 

myfinances.co.uk is running a poll to get your thoughts on stamp duty and its possible suspension to boost the property market.

Irish Pubs London
Find great Irish pubs in London. Read up on reviews on Qype.