The Finance Owl

Banks – Loans – Mortgages – Money

HFC Finance Unsecured Personal LoansThis article aims to give you an overview of HFC personal loans to give you some idea of the pros and cons of this particular loan product.

HFC Finance is a subsidiary organization of HSBC Finance (the personal finance arm of the HSBC Banking Group). It was the one time owner of Beneficial Finance (another personal finance company in the US) until HSBC Finance took over the entire HFC organization.
HFC offers a very similar range of personal finance products as Beneficial, including a range of branded HFC Finance unsecured personal loans.

HFC and the Types of Personal Loan Available

HFC offers two types of personal loan: open-end and closed-end loans. An open-end personal loan is also known as revolving credit, which differs slightly from a traditional type of loan which can be thought of as a closed-end loan.

An HFC open-end personal loan will enable you to borrow different amounts of cash at different periods of time. It works like an line of credit in that as long as you continue to pay any balance outstanding on the loan, you can continue to use the credit for as as long as you require. Payments on an HFC Finance open-end loan can vary according to the amount you have currently borrowed and the interest rate at the time. A line of credit such as this is good for those who do not have a fixed purchase in mind, but who need access to additional funds at certain periods.

HFC closed-end unsecured loans are what we normally think of as traditonal installment loans i.e. you borrow a fixed amount as a lump sum and pay it back over an agreed term at a fixed rate of interest. HFC closed-end personal loans then enable borrowers to repay a specific amount each month that never changes as long as payments are made on time. This type of unsecured loan is good for people who have a specific purchase in mind and who are looking for a standard rate of interest.

Benefits of HFC’s Unsecured Loans

  • No collateral needed
  • Good for short term borrowing
  • HFC Finance loans and credit lines can be arranged at fairly short notice
  • Simple loans application process
  • HFC personal loans are backed by an established brand
  • Access to on-line tools for managing your HFC loan account – statements, email alerts, payment and debit management.

Making an Application for an HFC Finance Loan

Applying for a personal loan with HFC is a three pronged process. Firstly, you need to complete an application which can be started initially over the telephone, but will ultimately require you to complete either an on-line or real world form. Your details will then be assessed to determine if you are eligible for an HFC loan and how much you would be able to borrow.

Once you have applied for your loan you will be contacted by an HFC account executive who can help to create a loan solution for you. The HFC account exective will advise you about any HFC loan options that you can take advantage of (rates, payments, charges, discounts and savings etc.) as well as discussing your present financial situation and credit needs.

Once your application has been approved by HFC you can choose to receive the loan funds directly to your bank account, via a check posted to your home address or you can collect the check in person at an HFC branch. You will be able to take full advantage of the HFC’s on-line loan account management tools.