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Unsecured Loan Tips to Start the Year Right - Unsecured Loans Now Articles Unsecured Loans Now Articles

Unsecured Loan Tips to Start the Year Right

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Posted on 9th January 2012 by Sandra Thompson in unsecured loan |unsecured loans

Many consumers prefer to borrow unsecured loans over secured loans.   First of all, unsecured loans do not require any form of collateral to guarantee repayment.  Thus, you do not need to be a homeowner or to submit a valuable asset in exchange for the amount you borrow.  Tenants or non-homeowners can easily qualify for an unsecured loan or an unguaranteed loan without any hassle.

In this article, we present valuable tips on how you can borrow an unsecured loan successfully and avoid getting ripped off.

Decide how much you need.  How much do you intend to borrow from an unsecured loan lender?  Unsecured loans usually carry higher rates of interest than secured loans so it’s important to borrow only the exact amount you need.

Plan your repayment strategy.  You should know for sure how much you can afford to pay each month and how long it will take for you to complete repayment.  Of course, it would depend on your monthly income and on your state of finances.  Having a definite repayment strategy is crucial to avoid being stuck in bad debt.

Compare unsecured loan deals. Lenders who offer unsecured loans usually impose higher interest rates so you want to spend some time evaluating your options and comparing loan deals.  You can use the internet to compare loans more conveniently and easily.  You can also check out the lender’s website as most lenders today offer loan services straight from the internet.

Check your personal credit. Your credit score will be an important factor in the type of loan deal you will get.  Most lenders reserve their best deals to customers with good credit to excellent credit so if you have bad credit history or a low credit score, your options might be limited.  However, it is still possible to find a reasonable deal if you spend time and exert effort conducting research.

Check the lender’s reputation.  Not all lenders that offer unsecured personal loans in the market are legitimate and can be trusted which is why you need to be cautious.  Check the lender’s background and reputation through the internet or you can also ask friends or family members for possible recommendations.

Adjust your monthly budget plan.  You might need to make major adjustments with your spending to make sure that you will be able to keep up with your monthly loan payments.  Remember that failing to submit your unsecured loan payment on time will cost you additional fees.  Furthermore, delaying your loan payments would mean paying much more on interest rate charges.

Negotiate the repayment terms.  Instead of immediately accepting the initial offer, it is always a good idea to try to work out a negotiation with a potential lender.  If you have a high credit score, use it to your advantage and ask for a lower rate.  On the other hand, if you have bad credit, explain to the lender the circumstances that caused you to have bad credit and request for a reduced rate or better repayment term.

About the Author

Sandra Thompson is a loan consultant with http://www.unsecuredloansnow.com and has been providing consumers and business owners with Unsecured Loan since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Student Credit Cards and Unsecured Credit Cards. Copyright 2012.

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