Unsecured loans, unlike a mortgage or a car loan, have no collateral to protect the lender in the event of default on payment. Because of the nature of the loan, the lender’s position is very exposed, and unsecured loans are considered a risky proposition. If the borrower fails to comply with the terms of repayment, there are no physical assets which can be seized to recoup the lent money. Taking these considerations into account, institutions offering unsecured loans, also known as personal loans, tend to do so only at high interest rates.
At NationalLoans.com, however, we have assembled a large network of unsecured loan lenders so you can compare interest rates and obtain a low interest loan.
Three Considerations for Unsecured Loans
- Credit Score – This is probably the biggest factor that will affect the borrower’s ability to obtain a personal loan. If you are asking for a loan without offering collateral, you are asking for a loan based on the lender’s faith in your word. To add a layer of protection, the lender will conduct a credit check in order to obtain your credit score.
Credit scores are based on an individual’s history with credit. Considerations in determining credit scores include; amount of outstanding debt, amount of available credit, frequency of loan applications, and history of delinquent payments.
In the eyes of the bank, a good credit score makes you a solid financial investment. Lower scores indicate riskier proposals. Your credit score will be reflected in the interest rate you are offered. A clean credit record will ensure the most competitive interest rates.
- Income Source – Without a solid source of income you probably will not qualify for a personal loan. Having high income can even offset a poor credit score. Lenders need to be comfortable that you have the ability to repay your loan.
Some considerations for your income include; the length of time you have been employed in your current job, the amount that you earn, and the nature of your work. Seasonal work will naturally be less appealing to a lender than professional, full time employment.
- Interest Rates – As mentioned earlier, unsecured loans come with high borrowing costs. If you add a poor credit score you can expect to be paying top dollar, if you qualify at all. Money lenders operate on the basis of risk, the bigger risk they are willing to take, the more return they expect.
Good Or Bad Credit, We Has A Loan Package That Is Just For You
We have prepared the most comprehensive database of unsecured personal loan lenders. The sheer size of our network and our long history of relationships means that you will be able to secure a loan package that is perfect for you, not just in terms of the credit line but also the interest rate and overall repayment terms.
How Does It Work?
If we were to summarize our entire process with one word, it would be SIMPLE! Yes, we thrive on simplicity. All we ask from you is thirty seconds. Complete our online application in thirty seconds and we will connect you with our entire pool of hundreds of lenders. In just a few minutes, you will start receiving quotes from lenders offering unsecured personal loans. That’s it. You can compare the offers, ask questions, negotiate terms, and choose the bank or lending institution that best fits your needs.
Throughout this process, our cutting-edge technology infrastructure will be backing you all the way through.
As soon as you complete the application, you will receive an instant online decision. That’s it!
Apply for an Unsecured Loan Options
Credit cards and payday loans are two of the most common types of unsecured loans. If you are looking to make a one-time purchase, you might consider checking to see if you can have your credit limit increased on your credit card.
A payday loan might be more suitable if you need cash for unexpected bills, or just find yourself short on cash. The benefit of a payday loan is that they usually do not run a credit check. If you know you have a poor credit score, this might be your best option.
Finally, if you want to avoid paying high interest and you own a home, consider a home equity loan. It will be a much cheaper alternative to an unsecured loan.
Remember that shopping around and wise use of credit are your two best assets in ensuring you get the best deal today, and are offered the best deals in the future.