A credit check will be carried out by potential lenders in order to ascertain your ability to repay any loan offered in order to assess your suitability for credit. A credit check is more important for lenders when applying for an unsecured loan than when applying for a secured loan. This is because a secured loan is a loan secured against a valuable asset, usually your home. Having the power to force the sale of your home to settle the loan provides lenders with leverage in the event that you fail to complete on your repayments. There is no such guarantee for the lender with unsecured loans, as there is no collateral provided. As a result, your personal history of borrowing will be much more closely examined when applying for an unsecured loan during the credit check process, as the credit check will determine the likelihood of your completing repayments on the loan by analysing your credit history.
A credit check will be carried out when applying for a secured loan to ensure that you meet lending criteria and to determine the interest rates and loan terms offered by the lender. Credit checks are a universal fact of borrowing money, and it is not possible to obtain credit without having your personal financial history examined in a credit check.
Complete the form on this page and TotallyMoney will connect you with an expert for advice regarding your secured loan options. There will be no credit check at this stage, just independent advice from a secured loan expert, providing you with a secured loan quote tailored to your financial circumstances.