Unsecured Personal Loans - A Loan for Everyone

by: Joseph Kenny



Most lenders, these days, will extend unsecured personal loans to many borrowers. The good news is that you do not need to have a good credit rating in order to qualify. Your credit score will, however, effect the actual interest rate that you get, and it may also effect the amount you get. So, before you apply make sure your credit report is accurate.

The amount that you can borrow also depends on your ability to repay the loan. If you now have a good job, and make a good income, then you could even get well over $200,000 in some cases. You will be able to use the money for anything that you would like, whether it be for a vacation in the Bahamas, skiing trip in Switzerland, a luxury car, debt consolidation, a college education, or even renovations to your home.

Your loan, after you apply can be more quickly approved than a secured loan - because no evaluation of any collateral will need to be evaluated. This means that you could get a response from the bank in just a few minutes, and the money could be made available to you within 24 hours.

In any cases, the money from an unsecured loan will need to be deposited directly into your checking account. This gives the lender some form of comfort in knowing that you really do have a bank account, and they will need to be able to withdraw the money from it automatically - if you default on payments. Other situations, such as if you get an unsecured loan in the form of a payday advance, or payday loan, the lender will want to take the full amount out of the account of the day that the loan becomes due.

Before you get an unsecured loan, however, you might want to know that you could get better interest rates from a secured loan. If you own a home, then you may want to consider a home equity loan - both of which will get you better interest rates. But if you have nothing to give as collateral then an unsecured loan may be just the thing you need, and could give you 5 years to repay it.

Getting a good deal on an unsecured loan will mean that you should shop around some before you sign. There will be some variation on interest rates and other conditions. By obtaining several quotes you will be able to avoid some bad deals and be able to get a deal you can be happy with. You will also want to make sure that the unsecured personal loan will not penalize you with a prepayment penalty - paying the loan off early.