Introduction
to UNSECURED LOANS
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This
month's offer:
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Unsecured loans are simply defined as a loan that does not require any kind of security on the note. The banks and lenders in the conventional lending institution category almost always require some form of security on every note the dispurse. There are exceptions, and our underwriters and loan officers provide pertinent information on these exceptions through our pages.
You quest as a borrower is straight forward - you need to find a lender that will approve your application for an unsecured loan at the lowest interest rate possible. The lender's goal is to make as much profit as possible on every loan they grant. This is where the rub lies.
If your credit rating is high (in the range of 700-800 FICO) then you can usually find a bank or credit union that will approve your loan for a reasonable interest rate compared to the going prime rate. If the prime rate is 3 points (3 percent) then the interest rate on your unsecured loan would be in the range of 6-8%. The bank knows that with your high level credit rating, you will MORE than likely honor your agreement with them, and they will get all of their profit in interest back, AND of course the entire principal on the note.
Unsecured Loans with a Bad Credit Rating
If you don't have any kind of collateral or security on the note (such as a vehicle or real estate), AND you have a poor credit rating (within a FICO in the range of 550-650) you will be paying a much higher interest rate. If you have a bad credit rating and zero security, then you will be paying an interest rate between 7-12% - sometimes higher. Our underwriters have seen some of our visitors paying upwards of 15-25%. We always recommend that borrowers avoid such high interest loan - for any purpose.
Unsecured Loans with No Collateral - Free Information
For more detailed information on different unsecured loans, you can read some of the many case studies and article written by our staff. Our staff writers are loan officers, or retired loan officers, who have decades of experience in approving or declining unsecured loans. You will find their articles to be a wealth of information, and will help you understand your borrowering and application options.
Thanks for reading our Preamble on unsecured loans. You have just scratched the surface of our web site which goes into great depths on the subject of unsecured financing and cash loans.