Deciding which type of loan is the best depends entirely on your own circumstances as neither of these loan options is the best choice every time.
Secured loans are usually secured against a property; these loans are more attractive to those who are finding it difficult to borrow the amount they need through an unsecured loan. Secured loans could be a more viable option for those who have poor credit, need more money or who want to borrow over a longer period of time. Unsecured loans are becoming harder to get, and are only really suitable to those with good credit ratings to ensure a lower interest rate.
Use the below comparison table as a guide only for differences between the two loan types:
| Secured Loan | Unsecured Loan | |
| Can I get a get a loan with a poor credit history? | Yes | Yes |
| Can I borrow a large amount (i.e. £15,000)? | Yes | Yes |
| Can I make payments over a longer period of time (i.e. 10 yrs)? | Yes | No |
| Can I get a loan without owning an asset? | No | Yes |
| Is the loan cheaper than using payday loans and store cards? | Yes | Yes |
| Do you offer the lowest interest rate? * | Yes | No |
| If I can’t repay my loan is my home at risk? | Yes | No |
If you are not a homeowner then a secured loan through Evolution Money would not be an available option for you. In which case, if you desire a loan then you will need to have a good credit rating to ensure that you are offered a favourable interest rate with an unsecured loan lender.
If a secured loan sounds like an option for you or to find out more about getting a secured loan through Evolution Money. If you would like to see how affordable a secured loan is why not try our handy loan calculator?
* Interest rates are usually determined by the loan amount, loan term and ability to repay. Unsecured loans typically carry a higher interest rates than secured loans as the lender will be wary that the loan being lent is not secured against any assets should you default on the loan.
For a typical loan of £30,000.00 over 120 months with a variable interest rate of 19.56% per annum, your monthly repayments would be £598.34.
Including a Product Fee of £2,400.00 (8% of the loan amount) and a Lending Fee of £807.00, the total amount repayable is £71,800.20.
Annual Interest Rates ranging from 11.88% to 29.38% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.
