Best unsecured loans UK
Enter best unsecured loans UK into a search engine such as Google and, unlikely though the phrase might be, you find there are 1,160,000 pages available for that combination of words. Leave off the "UK" and you find another half-million pages you probably don't want. So, although it will read strangely, for the purpose of this article we will use the entire phrase, best unsecured loans UK complete with "UK".
Now pay attention, class! The word "best" is important here, and in most people's terminology, "best" means "with the lowest interest rate" when talking about loans. "Worst" equates with the highest interest rate.
Risk has everything to do with best and worst rates
But in the world of lenders, "best" and "worst" has to do with risk. It has to do with how lenders view the chances that you will or will not pay your debts on time and with no problems. Lenders are in the money renting business, and they don't want awkward tenants. They want the rent (their interest) paid on time, along with the agreed portion of the principal, if required.
When you apply for "best unsecured loans UK", one of the things that determine whether you get the best, the worst, or somewhere between, is your FICOŽ score. FICOŽ is a mathematical formula that boils payment history, the amounts you owe, the length of your credit history, how recently you have opened new credit, and the types of credit you use, into one simple number. It is objective, and fair.
Being female and divorced no longer a factor
Unlike less objective methods used before FICOŽ was developed in the 1950s, race, color, sex or marital status are not parts of the picture. (At one time, divorce - or even being single - was an impediment to getting a loan. And older women remember how difficult it was for them to get loans if they were not married with a husband to back their credit. Times have changed for the better.)
Other things that are not part of the score, though they may still be taken into overall consideration, are age, salary, employment history, where you live, the interest rate on any of your loans, or whether you participate in credit counseling.
When you search for "best unsecured loans UK", your FICOŽ report helps you to get your loan faster. Computers deliver your score to lenders almost instantly. This is what allows retail stores to make "instant credit" decisions. More credit is available, too, because credit scoring gives lenders precise information on which to base their credit decisions. Scoring can identify people who are likely to use credit well in the future even if they have had problems in the past. With most credit available, its cost for borrowers decreases, at least in theory. Automated processes are less costly because they are more efficient.
Software can quickly track identity theft
FICOŽ scores are based on information from credit bureaus, so if you want your "best unsecured loans UK" to be truly "the best" of the best unsecured loans UK in terms of interest rate, make sure your record with the credit bureaus is accurate. Identity theft can play havoc with the credit reports of people for whom they should be spotless, and without frequent checking, you can be completely unaware that someone else is using your identity and messing up your credit rating. Some of the credit bureaus sell software that will report to you automatically when something unusual shows up in your report. This allows you to discover identity theft quickly.
