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Unsecured Loans Frequently Asked Questions - Loan, Unsecured, FAQs

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Questions & Answers

What is an unsecured personal loan?

A personal loan and an unsecured loan are actually identical; lenders just like to use different terminology to describe the same product.

A personal loan is described as an unsecured personal loan as it allows you to borrow money without having to use your home or even car as security.

What the lender will do to determine whether or not an unsecured loan is a viable option is to perform a credit search. This way the lender can look at your personal credit history and make their decision based on your credit rating.

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What does APR mean?

The amount borrowed is subject to an interest charge, and the interest rate applied is known as the Annual Percentage Rate (APR).

Generally, it is advisable to compare the APRs of different products as a means of determining how competitive they really are. It is not unusual for lenders to offer different APRs depending on the method of application e.g. applications by telephone may receive a higher APR than those done online, so it’s well worth shopping around for the best deal.

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What is a Credit Check and how does this affect my application?

A credit check is similar to a 'risk assessment', it is designed to calculate your credit score and from the result, each lender can see if there is a danger when it comes lending on an unsecured basis.

Each time a credit check search is requested by a lender, it will be noted on your credit rating by the credit reference agency and detailed in any future credit checks.

If you have had no previous credit issues, a credit check should be very straightforward and you should be eligible for the majority of personal loans.

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Will JST Financial carry out a credit check?

The simple answer is no we won’t.

However, once your application has been submitted, our partners may want to carry out a credit check themselves.

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Do credit checks affect my credit rating?

Each time you make an application for credit, a search (footprint) is recorded on your credit report where it stays for at least 12 months.

This allows lenders to see how many times you have applied for credit in the past year. If they see lots of searches in too short a time frame, it may count against you.

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I have CCJ’s and defaults. Can I still qualify for a loan?

Even if you have bad credit, JST can still help.

We do not discriminate against anybody who has a bad credit history; each applicant is dealt with in the same way. We will still search our extensive panel of lenders for the best available loan, regardless of credit status.

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Useful Financial Links

Please find below some links that you may find useful from JST Financial. These links are to external sites and will open in a new window.

Consumer Direct from The Office of Fair Trading carries extensive Loans information, covering everything from Unsecured Loans to Right to Buy Mortgages.

MoneyMadeClear (The Financial Services Authority) offers a great, free to use Loans Calculator.

Trading Standards offer advice on taking out a loan and what your rights are.

If you know of any other links that you believe may be of use to our visitors, please contact us.