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Unsecured loan on credit file

Londoner0707
Londoner0707 Posts: 14 Forumite
First Post First Anniversary
in Mortgages & endowments
Hi all

Is an unsecured loan the same as a payday loan?? And does it have the same consequences when going through credit application?

Thanks
Sadaf

Comments

  • kingstreet
    kingstreet Posts: 39,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No. An unsecured loan is simply any loan not secured on an asset such as a property. The usual term is 1 - 7 years.

    A payday loan is a type of unsecured loan but normally over a much shorter period, usually upto 1 year.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • chasingfreedom
    chasingfreedom Posts: 283 Forumite
    Sixth Anniversary 100 Posts Name Dropper Combo Breaker
    Londoner0707 said:
    Hi all

    Is an unsecured loan the same as a payday loan?? And does it have the same consequences when going through credit application?

    Thanks
    Sadaf
    An unsecured loan in itself will not stop you getting a mortgage. As long as you pass affordability taking into account the loan repayment you'll be fine.
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