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Home > Home ImprovementUnsecured home improvement loans make your home a better place to live
Posted by nick_niesen in Home on October 29th Hayden Hurst Hat , 2010


In the present era, a home is not just a place where you live together with your family. It has become more of a status symbol that reflects your lifestyle. Every one competes to make his home look better than others. However, lack of funds must be pulling you back in this race. Unsecured home improvement loan gives you the much-needed push to help you win this race and have a home that is the envy of others.


Unsecured home improvement loan forms one of the simplest method to finance home improvements. An unsecured home improvement loan is a personal loan, which is not secured against the property of the borrower.


The advantage of taking an unsecured home improvement loan is that it does not put borrower聮s property at risk. The loan provider cannot repossess borrower聮s property in case of default on loan. The loan is best suited for people who do not own property and living as tenants. Property owners too can apply for the loan.


Home improvements imply any improvement desired by borrower in his home or apartment. Home improvements that one intends to make may vary from person to person. Remodeling kitchen Justin Tucker Hat , adding a new conservatory, furnishing children room with bunk bed, can all be sufficient reasons for drawing unsecured home improvement loans.

Improvements that you make in your home will help in making it a better and a more comfortable place to live. Home improvements may also help in increasing equity in the home and can fetch you good money against your home in the future. Increased home equity can help you get better refinancing option.

Unsecured home improvement loan offers opportunity to borrow any amount ranging from £500 and can go up to £25,000. The amount one can borrow with an unsecured home improvement loan depends on the ability of the borrower to repay borrower to meet loan repayments and his or her credit history and credit score.


The term 聯credit score聰 plays an important role in determining the amount you can borrow with an unsecured home improvement loan. High credit scores facilitate sanction of a higher loan amount. If you have a good credit score Terrell Suggs Hat , you can grab better rates in the market. Hence, the first thing you need to do is to find out your credit score. Credit report can be obtained from any of the credit rating agencies namely Equifax, Experian or Transunion, which will reveal your credit score. Experian聮s FICO score furnishes the real picture of the borrower聮s credit worthiness. The score evaluates overall credit balances and credit history of the borrower. FICO score ranges from 365 to 850. A credit score of 680 and above is considered a good score. Credit score knowledge open the scope for a borrower to find good rates in the market.


Repayment period for an unsecured home improvement loan may vary from 6 months to 10 years. Unsecured home improvement loans are offered at a comparatively higher interest rate than a secured home improvement loan. One of the most important reasons behind the high rate of interest is the absence of collateral. A lender by charging a high interest rate intends to cover the cost of insurance policies that they need to take out to protect them in case borrower fails to repay the loan amount.