24-Month Unsecured Loans FAQs
What is a 24-month unsecured loan?
You might request a 24-month unsecured loan as you have considered that the repayments for this term are affordable for the amount you wish to borrow. Unsecured loans are personal loans and not secured against an asset such as a property. This makes them potentially suitable to non-homeowners, or to homeowners that do not wish to secure the loan.
How do I pay a 24-month unsecured loan?
A 24-month unsecured loan would require you to agree to repay your lender an agreed monthly instalment for two years. The levels of interest offered by lenders will play a part in determining how much your loan will ultimately cost, so make sure to shop around and go with an arrangement that suits your needs best.
How do I prepare for a 24-month unsecured loan?
Only borrow as much as you know you can repay and take the various rates of interest into account, to help you decide which loan suits you best. Also, make sure you are aware of all terms and conditions with your prospective deal, as some lenders may allow you to repay earlier without a fee, for example, while others may not. Knowing exactly what you need before you approach lenders will help you find the right loan for you.
Does my credit rating matter for a 24-month unsecured loan?
If you have a good credit history, you are more likely to succeed in getting a 24-month unsecured loan. Also, as you won’t be relying on collateral, having a steady source of income and a good track record on credit will give your lender greater confidence in lending to you.
Can I still get a 24-month unsecured loan with poor credit?
With a poor credit score, fewer lenders will consider you for a 24-month unsecured loan, as you may pose too great a risk for them. However, borrowers with poor credit can still find willing lenders on the market, but they may have to accept a higher level of interest, due to the increased risk for lenders.
Is a 24-month unsecured loan more expensive than a short-term loan?
Short term loans are a high cost form of borrowing and should only be considered in for essentials. The interest rates charged on a longer terms loan will be lower. However, the longer you borrow for, the longer interest is charged, so you should understand the full cost of borrowing on all loans you are considering.
How do I manage early repayment of my 24-month unsecured loan?
It may be possible for you to repay your 24-month unsecured loan early. Early repayment may allow you to save money on the remaining interest you would have had to pay originally. However, lenders vary in terms of early repayment policies. Some may encourage it, but others may be inclined to charge a fee. Check your loan terms before you proceed.
How will I know whether I can pay my 24-month unsecure loan back early?
Always check terms and conditions first, as policies can vary between lenders. Once you have identified potential lenders and received quotes, inquire about any extra costs that might come with early repayments. You may be able to find these details online before you apply for a quote, but if you can’t, don’t hesitate to ask your lender about this before you sign a contract.
