Ideal Characteristics of An Unsecured Personal Loan

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Posted on 17th April 2010 by Sandra Thompson in 1 |unsecured loans |Unsecured Personal Loans

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Unsecured loans are provided based upon the borrower’s impressive credit standing. Those who are in need of financial assistance yet does not want to put their properties on the line may opt to apply for an unsecured personal loan.

What are the ideal characteristics that you should look for from an unsecured loan?   Consider the following:

Fixed rate. It’s important to look for a loan with a fixed interest rate to avoid possible risks of debt build-up later on.  Take note that variable-rate loans may start out low but the rates are bound to change at any time within the repayment period.  To be safe from balloon rates, sign up for a fixed rate unsecured loan.

Sufficient Repayment Period. How long will the repayment period last?  While a short term loan gives you the option to pay your loan at a sooner time, the monthly fees can prove to be a burden.  On the other hand, signing up for a very long repayment period would mean paying more to your creditor.  Thus, it is advisable to choose a repayment term with just an average length of time.

No Hidden Fees. Because there is no collateral involved, some loan companies may try to get back by imposing hidden charges.  See to it that you will not be charged with extra fees that are not in your contract.  Carefully read the fine print before submitting your loan application.

Reasonable Prepayment Penalty. The prepayment penalty is the fee you pay your lender if you want to complete your payments ahead of your repayment term.  There are lenders who may require a very expensive prepayment fee to discourage borrowers from completing their loan payments at a sooner time.  Remember, the longer you stay within the repayment period, the more your loan company earns from the interest rates.

Payment Options. Look for a lending firm that provides flexible payment options to make repayment more convenient for you.  Is it possible to arrange automatic payment system with your bank?  Can you send your monthly loan payments through the internet or through telephone banking?  Knowing all the possible options is crucial to ensure that you will be able to keep up with your loan payments without hassles.

Credibility. Needless to say, you want to find a loan company that is highly reputed in the industry.  It is safer to borrow an unsecured personal loan from lending firm that has been providing trusted service for a considerable length of time.  You may find new loan companies that offer lower interest rates and instant approval, but are these lenders legitimate or are they out to rip you off?  Watch out for predatory lenders or loan sharks.  Be sure that you have done your own investigation before applying for a loan.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.


Unsecured Personal Loan – Smart Strategies

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Posted on 14th April 2010 by Sandra Thompson in 1 |unsecured loans |Unsecured Personal Loans

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If you need financing without collateral, then you need to apply for an unsecured personal loan.  Applying for any type of loan requires research and caution.  In this post, let’s talk about the smart strategies that you can do when searching for a potential unsecured loan lender.

Background and Reputation. Spend time checking the lending company’s background and reputation. How long has it been providing consumer loans to in the market?  Does it have a good reputation?  Is it registered with the Better Business Bureau?  Do your own research before submitting a loan application to any lender.

Compare loan deals. You can easily compare loan deals from different loan companies online.  Many lenders offer free loan quotes from their websites.  Just make sure that you will not be giving out personal information as your residential address, SSN or account numbers in order to get a free quote since there are fake lenders in the market who may use this scheme to steal personal information.

Check your credit. Have you ordered a copy of your credit report?  Be sure to check your personal credit rating prior to submitting unsecured loan applications.  Because no collateral is involved, having an impressive credit rating ensures your chance of getting an approval.  On the contrary, negative remarks in your credit report or a low credit score may get your unsecured loan application declined.

Prepare for repayment. Have you created your own debt repayment plan in case your unsecured loan gets approved?  How can you make sure that you will not be missing a single payment?  If you’re the type of borrower who manages multiple accounts, consider arranging an automatic payment system with your bank.  This way, you can guarantee that your unsecured loan payments will be consistently made on time.

Utilize your loan wisely. What do you plan to do once you receive your loan in cash?  How do you plan to spend the money?  Some borrowers may try to apply for a higher loan amount even when they do not really need the money.  Yet, even though you can get approved for a bigger loan, always remember that you will have an obligation to your lender.  Even though no collateral is at stake, not keeping up with your loan payments can force your lender to take legal action against you.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.


Should I Apply for An Unsecured Car Loan?

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Posted on 16th March 2010 by Sandra Thompson in 1 |unsecured loans

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Financing a car purchase on your own can be a burden especially since it requires a huge sum of money.  This is why many people apply for auto loans before buying their dream cars.  Some lending companies require collateral but you can also find lenders who offer collateral-free loans.



If you are planning to purchase a vehicle or apply for a car loan with no collateral, this article was written just for you.  First, let’s discuss the possible risks associated with an unsecured car loan and compare it with the advantages.  Then, let’s talk about some tips that can be of help for anyone in need of a car loan.

Unsecured Car Loans: The Possible Risks

Because of the absence of collateral, your personal credit rating can make or break a deal.  Needless to say, unsecured loan lenders prefer borrowers with impressive credit history.  Thus, if you have a low score, your application may get rejected.

Aside from your credit standing, your employment history will be closely evaluated.  If you have just been laid off from work or have just been recently hired with your new job, you may find it difficult to get approved as well.

Of course, the interest rates and fees are expected to be higher with unsecured loans than secured loans.  If you are not careful, you could get stuck with an unreasonable car loan deal.

Unsecured Car Loans: The Advantages

Now, let’s take a look at the brighter side.  If you have an excellent credit rating, getting approved for an unsecured car loan should not be a problem.  Many lenders would gladly extend you the financing you need based upon your outstanding performance as a borrower.

And because you do not need to submit collateral, there’s no need to worry about losing your property to your lender in case you fall behind your payments.  For a lot of people, a loan without collateral takes off the pressure and anxiety that being in a secured loan can give.

What about the interest rate and fees?  For someone with excellent credit, negotiating with a prospective lender can be very rewarding.  Lenders reserve their best deals to their best customers so you should use your good credit history to your advantage.

Car Loan Tips for You

Should you go for an unsecured car loan?  Obviously, the answer will depend on your situation.  If you are presently battling with poor credit, you may try to improve your credit rating first before applying for any loan or taking on a new responsibility.

However, if you really need to get a car at this moment, spend time doing research as to which lender offers the most reasonable deal.  Also, keep in mind that this is not the time to go for a luxurious car.

Instead of going for your dream car, find a cheaper car that will suit your needs and opt for a smaller loan value.  Be realistic about choosing a car loan and make sure that you can keep up with your lender’s terms.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.


Apply for an Unsecured Loan with Ease

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Posted on 27th February 2010 by Sandra Thompson in 1 |unsecured loans |Unsecured Personal Loans

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Many are hesitant to get secured loan, knowing that the stakes are high. On the other hand, some people simply do not have the means to submit security or collateral. For non-homeowners, unsecured loans are their only option.


In the past, unsecured loans are regarded as expensive loans because they do come with higher interest rates. Fortunately, the tough competition among lending companies in the market has paved the way for more affordable unsecured loan deals.

Unsecured Loans for All

Unsecured personal loans can be used for many purposes such as home improvement, car financing, wedding, out-of-the country vacation, tuition, debt consolidation, etc. If you are short on the budget and needs money at a sooner time, you may consider getting an unsecured personal loan.

Many lending companies today offer the unsecured type of loan for customers who cannot qualify for a secured loan. The specific requirements; the rates and fees; and the maximum loan amount vary from one lender to the other. Compared to loans with collateral, the process for acquiring a non-secured loan is much easier. You can explore your options through loan comparison websites or request for quotes from potential lending companies online.

Unsecured Personal Loan and Your Credit Score

When applying for any type loan, having good credit history is an advantage. Needless to say, lenders prefer customers who have proven their credit worthiness as borrowers. The proof is in your credit report. If your report shows a high credit score, you should have an easier time getting an approval.

Aside from quick approval, those with good to excellent credit have the opportunity to request for the lowest possible rate from a lender. Yes, the higher your FICO credit score is, the lower your interest rate will most likely be.

What about borrowers with bad credit history? There are some unsecured loan lenders who extend bad credit loans for people with imperfect credit history. In this case, the borrower’s capability to make payments will be taken into account. Thus, if you have a stable job or a reliable source of income, you are more likely to get approved.

Needless to say, an unsecured loan for bad credit will have a much higher interest rate. To make up for the risk of not submitting collateral and not having good credit history, lenders would surely need some assurance that the borrower will not be defaulting from their debts.

Of course, it is more sensible to get an unsecured loan once you have improved your credit rating. Hence, before applying for a loan, consider carefully if you really need the money right away or if you can find alternative solutions to the problem.

Order a copy of your credit report prior to submitting your loan application. This way, you’ll know exactly where your credit rating stands. If you have good credit, use it to your advantage by negotiating with a prospective lender. Meanwhile, if you have a low score, it is still worth a try to request for a lower interest rate especially if you have an impressive monthly income.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.


Unsecured Personal Loans In Times Of Need

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Posted on 26th February 2010 by Sandra Thompson in unsecured loans |Unsecured Personal Loans

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Most people who are in need of additional financial assistance turn to personal loans. Some individuals apply for a secured loan which requires them to submit their property (can be a home, land, car, etc.) as collateral. What if you don’t have a property to back up your loan?


The Basics About Unsecured Personal Loans

In general, an unsecured loan does not require a borrower to provide a lender any form of collateral which means you won’t have to put your home or car on the line. This type of loan is based solely upon the borrower’s credit rating.

The Factors

People with a good to excellent credit score can expect instant approval plus lower interest rates. On the other hand, a person with a lower credit score can have his/her loan application approved. However, it is to be expected that he/she will be given a higher interest rate due to the high risk involved.

A borrower’s income history also plays an important role in the decision-making of a lender. Since there is no collateral involved, a lender needs assurance that you can repay the loan on time. Lenders prefer employees with satisfactory average income than employees with lower income.

The Terms and Conditions

The loan’s Terms and Conditions, as well as the repayment options, are expected to be different, depending of course on the loan company you are dealing with. Generally, repayment of an unsecured personal loan is shorter than a secured loan since quick repayment of funds is considered as a safer option by most lending companies. Most lenders will give borrowers five years or less to pay back the money, regardless of how much is the loan amount.

Things to Remember Before Submitting an Application for an Unsecured Personal Loan

  1. Collect Then Select. Avoid submitting loan application to every lending company you encounter. Search the internet for lenders who offer unsecured loans, compare your possible options and choose the lending company that offers the best deal. Multiple loan applications, especially rejected applications, might give lenders a bad impression about you.
  2. Negotiate. Even if you have a bad credit history, you can try to negotiate for a lower interest rate, higher loan amount and/or longer repayment terms. This is why you should shop for possible options first before making a final decision.
  3. Check your Capability of Paying the Loan. It is very important that you are capable of paying your monthly dues on time. Whether you have a good or bad credit history, late or missed payments can leave a negative remark on your credit report.

NOTE: If you are in need of a huge amount and aims for a much lower monthly payments, applying for an unsecured personal loan might not be the right thing for you to do. Instead of forcing the payments to work with your limited budget, try to evaluate if there is anything you can offer your lender as collateral or reduce your total loan amount.

About the Author

Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.