Christmas is coming sooner than you think and while it might be a bit early to be buying presents, now is the perfect time to start on those home improvements you need to get done before the family pile around to yours for the festive season.
If you have work that needs doing to your house or you just want to get some redecorating done before Santa comes but you don’t have the money to pay for it, don’t worry.
In this article, the Loan Princess team will explain:
• what an unsecured home improvement loan is,
• why you might want to take one out, and
• some tips to consider before taking out a loan.
What is a home improvement loan?
A home improvement loan is a type of unsecured personal loan. These loans are for people who are looking to get improvement work done on their homes while spreading the costs over a longer period of time.
If you have a poor credit rating, you can normally borrow up to a maximum of £2,500 and a minimum of around £100. However, it is worth mentioning that each loan provider will have their own minimum and maximum loan amounts.
Why might you consider taking out a home improvement loan?
There are many reasons why you might want to consider taking out a home improvement loan. For example, you might need to do some repairs to your boiler before winter comes. You may also want to invest in some new double glazing to reduce your heating costs over the colder months.
Now is the good time to take out an unsecured home improvement loan – just before the colder months set in and you have got your guests round for Christmas. Home improvement loans can be used to redecorate your home, repair anything around your property that’s not working properly, or even buy some new fitted appliances for your kitchen.
With the festive season right around the corner, you might not have the time you need to save up for the work that you need doing. That’s where home improvement loans come in.
You can apply for a loan right now and the money may land in your bank account on the same day. This means you can get to work immediately and pay off the loan over a longer, more manageable period of time.
Unsecured home improvement loans – what does unsecured mean?
An unsecured personal loan means that you don’t have to put up any collateral in order to take out the loan. Collateral can be any form of property or asset that you own to provide the lender with a form of security if you’re not able to make the repayments. You don’t need to do any of this with an unsecured personal loan.
Instead of approving loan applications based on the value of any security you provide to a lender, unsecured loan providers use both the information you provide them with on your application form and your credit score. This score lets loans provider know how likely you are to be able to pay off the loan based on, among other things:
• previous and current credit facilities you have taken out,
• how many payments you have made on time to finance companies, and
• how much credit you have available to you and how much of it you’re using.
Do you need a good credit score for an unsecured home improvement loan?
You can be approved for an unsecured home improvement loan with a low credit score. There are a large number of specialist lenders who are willing to approve applications from people who have less than perfect credit histories. As a broker, we negotiate on your behalf with these companies to get you the best deal – we’ll tell you how in a minute.
Top tips for taking out an unsecured home improvement loan
There are some things that you should consider doing before you apply for a home improvement loan with Loan Princess. You should:
• Make sure that you get the best quote you can for the work that you need doing. This could be for boiler repairs, double glazing, or labour for redecorating.
• Use any savings that you have so you don’t take out a loan that is bigger than you actually need,
• When you take out a loan for a longer period of time, you will end up paying more, but you will have smaller monthly instalments to pay,
• Only take out a loan that you can comfortably afford to pay off.
Compare home improvement loans in time for Christmas with Loan Princess
If you’re looking for a home improvement loan, try Loan Princess. We are a loan broker, rather than a lender. This means that once you submit a loan application with us, we send it to our network of lenders who will then make you their best offers. Here’s how it works:
First, you need to fill in our application form. You’ll need to tell us how much money you would like to borrow, how long you would like to borrow it for, how much you earn each month, what you spend money on, and a few other questions.
Once that has been completed, we submit your application to all of the lenders that we work with. They will review your application and your credit report and they then decide whether they would like to lend you the money you’ve asked for. We then gather all of their responses and show you the best offer we’ve found.
Our service is completely free for you to use and you do not have to accept any of the quotes that we find for you. Loan Princess provides you with loans that are suited to your needs with terms and interest rates that you can afford. To get started, click here.