subject: Unsecured Loans : Easier Finance For All Types Of Borrowers [print this page] Even if you have nothing of much value to offer a lender for collateral, it is possible for tenants or non-homeowners like you to borrow money without any hurdles.
Unsecured loans should be searched when you are such an applicant who does not own a property. These loans are available to the homeowners also if they do not want to risk a property.
Since you are not going to pledge anything for collateral, the lenders will take all the steps to cut down the risks. Your present monthly repayment capability will be first assessed and a loan amount will be determined accordingly. The lender will also take out your credit report. So, ensure that the report does not have errors in it.
Unsecured loans are made to the tenants or non-homeowners as well to homeowners without collateral. You can borrow smaller amount ranging from 1000 to 25000 depending on your ability to repay and credit history. The loan is of short-term in the range of one year to 15 years.
But due to lack of high value collateral and short repayment duration, these types of loans carry high interest rates. But you should not be discouraged as competitive rates can always be searched. If you carry an excellent credit history, then rate can be affordable.
You can use
unsecured loans for home improvements, clearing of old debts, purchasing a car, spending on holiday tours and wedding and for any other purposes. But borrow within your repayment limits.
Generally, online lenders are more competitive than banks and other financial institutions. So make extensive comparisons of as many such lenders as you can in order to find affordable rates and additional fewer charges.
Unsecured loans are available easily also for your bad credit history of late payments, defaults and CCJs, but at higher rates. Ensure timely repayments of the loan so that you can achieve some improvements in the coming months.
by: Tom Dikkin
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