In this article, we will explain the basics of an unsecured loan, what an unsecured loan means and the alternatives to unsecured loans, so that you can make an informed choice. You can compare the UK's top personal loans on our page 'The best personal loans'. What is an unsecured loan?
APersonal Loanis a loan offered by most banks to help individuals meet their personal needs. These are usually unsecured loan products that are sanctioned based on the financial credentials and creditworthiness of the applicant. Some of the factors that most banks a...
A personal loan is an unsecured loan typically from $1,000 – $100,000 with fixed or variable interest rates that can be used to make a large purchase or to consolidate debt. The term “unsecured” means that there is no underlying collateral attached to the loan. For example, if you b...
Debt forgiveness is often possible. Know the pros and cons to decide if debt settlement is worth it. Gina FreemanJan. 21, 2025 What if You Default on a Personal Loan? Defaulting on a personal loan, even an unsecured loan, can get you sued. Here's what you should do. ...
Some types of personal loans. Borrowers will not encounter unsecured mortgages as the home is always used as collateral. Unsecured auto loans exist but are uncommon. Pros and cons of unsecured loans Unsecured loan options may be less risky than other loan types for certain borrowers, but not al...
Secured Personal Loans Asecured personal loanis one that is backed by collateral, such as a house, car or boat. This can be advantageous to someone who may not have good enough credit to qualify for an unsecured loan. Although a secured loan is riskier to you as the borrower, it poses ...
Unsecured loans come in three main forms: personal loan, student loans, and unsecured credit cards. Unsecured loans are also known as "good faith loans" or "signature loans." Collateral is required for a secured loan. Collateral can be a home, car, cash, investments, or other assets. ...
A personal loan is an unsecured loan, which means there is no physical property backing the loan.Mortgagesand car loans, for example, are both considered to be secured loans. Borrowers can use personal loans for several reasons includingloan consolidation, home repairs, vacations, emergency expenses...
Unsecured Personal Loans Unsecured loans don't require collateral. Instead, approval is based on your creditworthiness, including your credit history and credit score. Potential borrowers with better credit history may have a higher chance of getting approved an unsecured loan, since they demonstrate a...
How Interest Rates Work on Personal Loans Generally, unsecured loans have higher interest rates than comparable secured loans with collateral.1Unsecured personal loans also come with more stringent approval requirements, so you’ll need credit if you want lower rates. If your credit history is poor...