Unsecured Loans
Apply online for an unsecured personal loan without using your home, car or another named asset as security.
Representative example
Amount of credit: £1,200 for 18 months at £90.46 per month. Total amount repayable: £1,628.28. Interest: £428.28. Interest rate: 49.9% p.a. (variable). Representative 49.9% APR variable. Rates between 8.8% APR and a maximum of 1698.1% APR.
What is an unsecured loan?
An unsecured loan is borrowing that is not secured against a named asset such as your home or car. You receive an agreed amount from a lender and repay it, usually with interest, over a set period.
Most standard personal loans are unsecured. The lender assesses you and your circumstances rather than taking an asset as security, considering factors such as income, existing commitments, credit history and the amount requested.
Money Trumpet is a credit broker, not a lender. We will pass your completed application to a lender or another broker for consideration. That company will contact you directly, carry out its checks and explain any offer it is prepared to make or arrange.
Important: “Unsecured” does not mean risk-free. Missed payments can cause charges, damage your credit record and lead to debt collection or court action.
How do unsecured loans work?
You complete one online application, Money Trumpet passes it on, and the lender or broker completes its own assessment.
Choose what to request
Work out how much you need and what monthly repayment could remain manageable throughout the proposed term.
Complete the form
Provide your personal, contact, address, employment and income information accurately.
Application is passed on
Money Trumpet will pass your completed application to a lender or another broker for consideration.
Direct contact and checks
The company will contact you, complete its checks and explain any available offer. You decide whether to proceed.
Are personal loans and unsecured loans the same?
Personal loans are usually unsecured loans, so the two descriptions often refer to the same type of borrowing. “Personal loan” describes borrowing for an individual, while “unsecured” explains that no named asset is pledged as security.
Not every personal borrowing product works in exactly the same way, so check the agreement rather than relying on the product name alone. Money Trumpet also has a dedicated personal loans page for people comparing borrowing for planned expenses.
What types of unsecured loans are available?
A fixed-sum personal loan is one type of unsecured borrowing, but it is not the only product that does not use an asset as security.
Unsecured personal loans
You borrow a lump sum and repay it, usually with interest, through scheduled payments over an agreed term.
Credit cards
A credit card provides revolving credit up to an agreed limit, with interest and minimum-payment rules set by the provider.
Overdrafts
An arranged overdraft allows eligible customers to borrow through a current account, normally with interest charged on the amount used.
Guarantor loans
A guarantor agrees to meet the repayments if the borrower does not. The guarantor takes on a serious legal and financial commitment.
Money Trumpet’s Apply Now button on this page is for a fixed-sum unsecured personal loan enquiry. Other forms of unsecured borrowing have different costs, repayment structures and risks.
What can an unsecured loan be used for?
An unsecured loan can be used for many eligible planned expenses, including a car, home improvements, a wedding, another significant purchase or debt consolidation. Every lender sets its own permitted and restricted purposes.
Borrowing for debt consolidation only helps when the new agreement genuinely improves the total cost or repayment plan and you avoid building up the cleared balances again. Be accurate about the intended purpose and confirm it with the provider before accepting an offer.
What is the difference between secured and unsecured loans?
The key distinction is whether a named asset is used as security for the borrowing.
| Feature | Unsecured loan | Secured loan |
|---|---|---|
| Security | No home, car or other named asset is pledged as security. | A named asset, commonly a property, is used as security. |
| Assessment | The provider considers creditworthiness, affordability, eligibility and application details. | The provider considers those factors plus the asset, its value and available equity. |
| Amounts and terms | Depend on the lender’s unsecured product and its assessment of the applicant. | Can differ because the borrowing is supported by an asset. |
| Risk if you do not pay | Credit-file damage, charges, collection activity and possible court action. | The secured asset may also be at risk if repayments are not maintained. |
A secured loan can put the secured asset at direct risk. An unsecured lender does not have that security at the outset, but it can still take lawful action to recover unpaid debt. Read more about secured loans.
Who can apply for an unsecured loan?
To use Money Trumpet’s application service, you must be at least 18 years old and a permanent UK resident. Meeting those conditions does not guarantee an offer, a particular amount or a particular interest rate.
Lenders and brokers set their own eligibility and affordability rules. They may consider your income, employment status, address history, regular spending, existing credit commitments and information held by credit reference agencies.
What information might you need?
Be ready to provide accurate identity and contact information, current and previous addresses, employment or income details, bank details and information about existing commitments. The company considering the application may ask for supporting evidence.
How do lenders decide whether to offer an unsecured loan?
Each lender uses its own criteria, so no single factor or credit score can guarantee approval.
Income
The amount, source and stability of your income can influence whether the proposed repayments appear sustainable.
Existing commitments
Current debts, credit limits and regular household costs help the lender assess affordability.
Credit history
Payment history, current borrowing, defaults, court judgments and recent applications may be considered.
Application details
The amount, term, intended purpose and accuracy of the information supplied can affect the decision.
Different lenders can reach different decisions because their products and risk policies vary. Avoid making several full credit applications in quick succession. Our guide explains more about how loan decisions are made.
Will applying for an unsecured loan affect your credit score?
Completing Money Trumpet’s form will not affect your credit score because Money Trumpet does not search your credit file. The lender or other broker receiving the application may carry out its own checks.
A soft eligibility check is not normally visible to other lenders. A hard credit search is recorded on your credit file and may be seen by other lenders. The company considering the application should explain which type of search it uses.
Several hard searches in a short period can make obtaining credit more difficult. If your credit history is a concern, read our guide to improving your credit score and our information about bad credit loans.
How should you compare unsecured loan costs?
Compare unsecured loan offers using the actual interest rate, monthly repayment, repayment term, total amount repayable and any relevant fees. A lower monthly payment can still result in a higher total cost when the loan runs for longer.
The representative APR helps compare advertised credit, but it is not a promise of the rate you will receive. Check the personalised offer and pre-contract information before agreeing to anything.
| What to compare | What it tells you | Why it matters |
|---|---|---|
| Actual interest rate and APR | The rate offered to you and an annual measure of credit cost. | Your actual offer can differ from the representative rate in an advert. |
| Monthly repayment | What is normally due each month. | It must remain manageable for the full term. |
| Repayment term | How long the agreement lasts. | A longer term can lower monthly payments but increase overall cost. |
| Total amount repayable | The expected total paid if the agreement runs as stated. | It gives a clearer view of the full cost than the monthly figure alone. |
| Fees and early settlement | Relevant charges and rules for paying the balance early. | These can affect cost and flexibility. |
What are the advantages and disadvantages of unsecured loans?
No asset is pledged as security, but the debt still creates a binding repayment commitment and can become expensive.
No named asset secured
Your home or car is not pledged as security when the agreement is made.
Predictable schedule
A fixed instalment loan normally sets out the payments and repayment period in advance.
Interest adds to the cost
You normally repay more than you borrow, and the rate offered depends on the provider’s assessment.
Missed-payment consequences
Late or missed payments can add cost, damage your credit file and lead to recovery or court action.
What happens if you miss unsecured loan repayments?
If you miss an unsecured loan repayment, the lender may contact you, report the arrears to credit reference agencies and apply charges where the agreement permits. Continued non-payment can lead to collection activity, default and court action.
Contact the lender as soon as you think you may struggle. Explain what has changed, ask what support is available and avoid taking another loan simply to hide an ongoing shortfall. Our guides explain how to deal with creditors and offer practical loan repayment tips.
Free, impartial debt advice is available through MoneyHelper’s debt-advice locator.
What should you consider before taking out an unsecured loan?
Before taking out an unsecured loan, decide whether the expense is necessary, borrow no more than needed and test the repayment against a realistic budget. Consider whether you could still pay if your income fell or essential costs rose.
Read the pre-contract information carefully. Check the actual rate, every repayment, the term, total amount repayable, late-payment consequences and early-settlement terms. Do not proceed until anything unclear has been explained.
Alternatives can include waiting and saving, reducing the purchase, an appropriate interest-free arrangement or checking a credit union. If the loan would cover regular bills or debts you already cannot manage, free debt advice may be more suitable than further borrowing.
Unsecured loan FAQs
Clear answers about unsecured loans and applying through Money Trumpet.
What is an unsecured loan?
An unsecured loan is borrowing that is not secured against a named asset such as your home or car. You repay the amount borrowed, normally with interest, over an agreed period.
How much can I apply to borrow?
Available unsecured loan amounts range from £1,000 to £50,000. The amount you can request and any amount offered depend on the provider’s products, eligibility rules and assessment of your circumstances.
Can I apply for a £20,000 unsecured personal loan?
Yes, £20,000 is within the available application range of £1,000 to £50,000. Applying does not guarantee that amount or any offer; the provider will assess the request and your circumstances.
Is an unsecured loan the same as a personal loan?
Most standard personal loans are unsecured, so the terms often describe the same product. Always check the individual agreement because product structures and terms vary.
Are unsecured loans more expensive than secured loans?
Not always. Rates and total costs depend on the product, provider, amount, term and applicant. Secured borrowing can sometimes have a lower rate, but it places the secured asset at direct risk and may include different fees.
Which lender offers the cheapest unsecured loan?
No lender is always cheapest for every applicant. Compare the actual rate offered, monthly repayments, fees, term and total amount repayable rather than choosing on an advertised rate alone.
Do I need to own a home to apply?
No. An unsecured loan does not require you to use a property as security. The lender will assess eligibility, creditworthiness and affordability under its own rules.
Is an unsecured loan risk-free?
No. Although no named asset is pledged initially, missed payments can cause charges, credit-file damage, collection activity and court action.
Can I get an unsecured loan with bad credit?
Some providers consider people with previous credit problems, but approval is not guaranteed and available rates may be higher. The decision depends on the provider’s criteria and your circumstances.
Does completing the Money Trumpet form affect my credit score?
No. Money Trumpet does not search your credit file. The lender or broker considering the application may carry out a soft or hard search and should explain this directly.
Does Money Trumpet provide the loan?
No. Money Trumpet is a credit broker, not a lender. We will pass the application to a lender or another broker, and that company will make or arrange any lending decision.
Does Money Trumpet charge an application fee?
No. Money Trumpet does not charge customers a fee for using its service. We may receive commission from a lender or another broker if you enter into a consumer credit agreement.
Will I definitely be accepted?
No. Applying does not guarantee acceptance, a particular amount or a particular rate. The lender or broker uses its own checks and criteria.
Can I repay an unsecured loan early?
Early settlement may be possible, but the process and any relevant charge depend on the agreement. Ask the lender for an early-settlement figure and explanation first.
Can I cancel an unsecured loan after accepting it?
Regulated consumer credit agreements normally provide a 14-day right to withdraw. You must repay the credit and any interest due within the required period, so contact the lender promptly and check the agreement.
Who contacts me after I apply?
The lender or broker will contact you directly to complete its checks, request any further information and explain any offer it is prepared to make or arrange.
How quickly will I receive a decision or the money?
Timescales vary. The lender or broker may need identity, credit and affordability checks or further information before reaching a decision. Money Trumpet does not promise instant approval or same-day funds.
Guides about borrowing and repayments
Use these guides to prepare before applying and manage borrowing responsibly.
How Loan Decisions Are Made
Understand the information a lender may use when considering an application.
Repayment guideTips for Paying Off Loans
Practical ways to organise repayments and respond early if circumstances change.
AffordabilityHow to Create a Budget
Work out what comes in, what goes out and what a new commitment would mean.
Sources and review information
Reviewed 15 September 2026. Key external guidance: MoneyHelper — Personal loans and unsecured borrowing; MoneyHelper — Credit checks and credit scores; Financial Conduct Authority — Consumer credit sales and advice; and Financial Conduct Authority — Creditworthiness and affordability.
Ready to apply?
Use the shared application form for personal, online and unsecured loan enquiries.