SWBA Loans

Advantages and Disadvantages of 12 Month Loans

If you are looking for a perfect loan, you can stop, like right now. There is no such thing. Whether you apply for a secured or unsecured, long-term or short-term loan, there are always some pros and cons about it. For instance, a loan might involve an easy application process, but the APR percentage might be too high. Or, as with secured loans, you could apply for a large sum of cash, but will have to put up something valuable as a collateral (even your home).


 Bottom line when it comes to loans, is that you need to know as much as you can about them before you make any decision. The same, of course, goes for a type of unsecured loan called a “12 month loan”. Since this loan is unsecured, that means you don't have to put anything as a collateral (security) against it. This removes the risk of having your valuables, car, or even your entire home seized because you defaulted by just one month.
Another advantage of these loans is that they can be obtained even by people who don't have a very clean credit history. Since there is no credit check, it doesn't matter what is the condition of your credit history, or even if you have it (which is why it's also suitable for those who've just finished college).
You can also get the money via this type of loan in just a few hours on your bank account, after a successful application on the lender's website (again, this will take only a minute of your time to fill out).
But, the biggest advantage of all is the fact that, even though you'll get the cash in a few hours, you have a loan repayment tenure of ONE WHOLE YEAR. With 12 months to repay the loan (doesn't matter what sum as long as it is between 80 and 1000 pounds), you have a lot more room to breathe than with most other types of financing.


Remember when I said that no loan is perfect? Well, 12 month loans have a few cons of their own.
First of all, they come with a high interest rate. A very high interest rate, that is. This is generally the problem with all unsecured loans. The lender simply needs some sort of a guarantee that he'll get his money back and with no collateral present, he charges a high interest rate. Which can go as high as 1000%.
Also, there are always unscrupulous lenders and even scams that you have to be vary of. Again, this is the ongoing problem that you have to deal with when applying for any online loan, so you need to be careful who you are dealing with. Check around if they are a reputable lender before you make even so much as an enquiry about their loans.