Unsecured Loan Options

Need a loan? Don’t have anything for collateral to borrow against? You need an Unsecured Loan. To explain, an unsecured loan is a type of loan that doesn't require the borrower to present any collateral. The loan is instead based on credit rating, previous loan payment history, and financial resources.

Although there are lenders who offer unsecured loans regardless of credit rating. Because this type of loan posses a higher risk for lenders the interest rates are generally higher.

Unsecured loans are offered in a variety of types:

A) Unsecured Personal Loan- provides the borrower with money that can be used for any purpose (i.e. vacation, to pay off debt, car repair, home improvement, etc). The amount of money available to an individual through an unsecured loan will vary depending on the lender and credit score requirements. Although in some instances lenders choose to make these loans without looking at the borrower’s credit rating. These loans generally range between 1,500 and 50,000 dollars.

B) Unsecured Small Business Loan- this type of loan is available to borrowers who need some help with their small business expenses. Depending on the lender you choose you can have an approval in minutes, with no application fee and no collateral. However this type of loan generally has a greater dependence on your credit score so it helps to know what that is before applying for a loan.

C) Unsecured Start up Loan- this type of loan is dependent on your credit score and is intended for the purpose of helping an individual acquire funds to start a small business. Depending on the lender you choose to use you can get your loan in as little as one to three days from approval. The amount of money a borrower can get also depends on the lender, however lenders generally offer between 10,000 and 50,000 dollars for this type of loan.

D) Cash Advance (Small Unsecured Loan)- is a smaller loan offered by lenders for borrowers in need of quick cash. This type of loan does not generally require a credit check, but does however usually require the borrower to have a checking account. These loans vary in amount depending on the borrowers needs and can range from 100 dollars to 1,500 dollars. Interest rates and fees vary depending on the lender you choose.

Unsecured loans can be found at local banks and payday lending institution as well as online. When considering an unsecured loan it is important to determine what amount of money you would like to borrow before choosing which type of lender to apply with. If you are applying for a larger sum of money be sure to shop around and see who is offering the best interest rate. It is also important to consider the repayment terms of any loan you are considering.