There are many different types of loans; an unsecured personal loan can be repaid every month at a fixed amount and this type of loan is not secured to any type of asset.

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You can apply for a personal loan from building societies and banks; personal loans are available in different ways. It mainly depends on the reason why you need the loan and the amount you want to borrow.

The amount of money borrowed can be from £250 onwards and this sort of amount can be repaid between 6 months to 15 year agreement. The rates can be variable or fixed, say the rate is variable then this can change if market varies meaning your repayments can increase. If a rate is higher, then this is probably a fixed rate as fixed rates have more certainty. It is always best to compare each lenders Annual Percentage Rate (APR).

If you choose to take a personal loan then these types of loans can be repaid every month at a fixed amount. Many lenders offer the option of over-payments and under-payments, however it all depends on your current personal status.

Keeping up repayments on an unsecured loan can be difficult, especially if your credit history is poor. People with a poor credit history may be forced to pay a higher interest rate as long as there is a lender who will provide for these people with this type of status.