Personal Loans
Whether it is for a holiday, car purchase, home improvement or for debt consolidation, CeeJay knows that finding the best personal loan for you and your circumstances can be difficult.
Do you want to borrow money for a year or, up to 10 years?
At Credit Jungle we understand your dilemma, CeeJay and the Credit Score Crew are able to help!
Your Credit Jungle Rating will be used to match you with the best loan available for your circumstances. It's important to realise that this may not be the cheapest loan on the market, but the most suitable loan for you, based on a number of different factors, such as your job situation, age and of course your credit rating.
Applying for multiple loans where you do not meet the necessary requirements, will mean your application is declined leaving a footprint on your credit report and consequently damaging your credit rating.
Therefore at Credit Jungle, we will match you with a lender that will provide you with a personal loan at a competitive rate over the time period you want!
Personal Loans
A personal loan is a loan that is not backed by collateral e.g. your house. Personal Loans are also known as signature loans or unsecured loans
The issuing of personal loans is based solely upon the borrower's credit rating. As a result, they are often much more difficult to get than a secured loan, which also takes into account the borrowers income. A personal loan is considered much cheaper and carries less risk to the borrower. However, when a personal loan is granted it does not necessarily have to be based on a credit rating. For example, if your friend lends you money without any collateral, then your credit rating has nothing to do with it, but rather the value of your friendship is at stake.
Therefore, the real meaning of a personal loan, is that it is not backed by any object of value, but is lent based on your good name. Financial institutions will want to look at your credit rating, because they are not your friend and it is strictly a business transaction. Your good name may therefore be associated with your historical payment history on prior debt, which is reflected in your credit rating.
Since personal loans are not secured against property or any asset, it is more difficult for a lender to get their money back if the borrower does not or cannot repay the loan. Because of this increased 'risk' (compared to secured loans), personal lenders tend to have stricter underwriting rules. In particular, lenders will look at the potential borrower's credit history and how they have conducted their previous and current credit or loan accounts.
In summary the lender has to decide, based on the prospective borrower's credit history, how likely they are to repay the loan. If the risk is too high, the borrower will be declined the loan. As already mentioned this will leave a footprint and damage your credit rating. If the risk is acceptable, then the lender will (subject to other minimum requirements) make a loan offer.
Rate determination
Assuming a loan offer is made, the actual APR will normally depend on two things, the loan amount and that level of risk. Generally speaking, the higher the loan amount the lower the APR will be. In terms of the level of risk, the higher the risk the higher the APR lenders will charge - this is known in the loan industry as rate-for-risk.
