Cathy Dodge`s Blog Site

An unsecured loan is a type of loan that does not require collateral from the applicant. The banks rely on your word that you will stick to the agreement and repay them at the terms and rates that you have signed.  These are easier to apply for although they may have higher interest rates, especially if you have bad credit standing. This is done by the bank to ensure that they can get a bigger percentage of their money back in case you fail to repay the loan. Some examples of unsecured Personal Loans include credit card balance transfers, bill consolidation, signature loans, payday cash advances, among others. Make sure that you will be able to repay the loan before signing the papers – by putting your signature on paper, you are essentially giving the lenders a right to bring you to court should you be unable to pay them back.

This entry was posted on Saturday, May 29th, 2010 at 8:45 pm and is filed under News and Society. Both comments and pings are currently closed.