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Unsecured Loans

by freebird, Creator

  • Created: September 26, 2010, 11:17 pm
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5 comments

hi friends,

Can anyone give some more information about the unsecured loans since I am not getting the appreciative and satisfactory information about the unsecured loans.

Tags: Discuss Popular Topics, Loans & Grants
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phanio | Contributor | 9/27/2010 - 8:19 am

Not sure what your question is but unsecured loans are loans that are free from any personal or business collateral - meaning that should you default (not make payments) the lender cannot claim and sell off your personal or business assets. Since the lender takes more risk with these types of loans - they tend to be harder to get approvals for and the rates (interest rates) tend to be higher. The loan is underwritten based on strong current cash flow of the borrower and strong credit history. Lastly, most lenders will approve smaller unsecured loans as opposed to large commercial property loans. Banks tend not to provide many unsecured loans - they have a fiduciary duty to their depositors and thus want collateral to secure the loan. But, there are many, many non-bank lenders that have made a market for these types of unsecured loans. Hope that answered your question.
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JimD | Former Moderator | 9/27/2010 - 5:31 am

freebird, Can you be more specific on what information your are looking for in regards to unsecured loans? This can help your fellow community members. JimD

RefiGuy | Performer | 10/22/2010 - 6:27 pm

Unsecured loans are going to be harder to get the secured loans. There are a few companies that advertise big time for unsecured loans. One of them is Cash Call. They say that they are not cheap but if you need the cash then it may be a good option. Good Luck!

Sharger_Shane | Window Shopper | 12/28/2010 - 1:20 pm

freebird wrote: hi friends,Can anyone give some more information about the unsecured loans since I am not getting the appreciative and satisfactory information about the unsecured loans. Your question is way too generic so I'm pretty unsure as to what exactly you're looking for. Just to give you a heads up, One disadvantage of unsecured loans is the the high rate of interest attached with them. In case you have a bad credit history then this interest rate can even run as high as 20%. The same also holds even if you're going with credit card option.

MortgageHelper | Window Shopper | 1/10/2011 - 5:23 pm

Show Replied Text…
freebird wrote:hi friends,Can anyone give some more information about the unsecured loans since I am not getting the appreciative and satisfactory information about the unsecured loans.Your question is way too generic so I'm pretty unsure as to what exactly you're looking for.Just to give you a heads up, One disadvantage of unsecured loans is the the high rate of interest attached with them. In case you have a bad credit history then this interest rate can even run as high as 20%. The same also holds even if you're going with credit card option.
stay away from unsecured loans if you can help it for two main reasns: 1. they are hard to get. criteria are tougher as there is no asset security so you can spend a lot of time fruitlessly applying for no benefit. 2. they are expensive! interest rates are significantly higher than secured loans to compensate for the lenders risk of default. what this means is that you can borrow less money for the same repayment amounts than with a secured loan. They do have their place, but unsecured loans shouldn't be your first option.