Unsecured Personal Loans

Unsecured personal loans may be your best option when you need funds and you need them quickly. The problem is that most people do not do their homework before applying any type of loan and may learn they should choose a different path. Keep reading to learn the ins and outs of personal loans so you can make an educated decision on choosing unsecured personal loans.

Unsecured personal loans are not the same as home mortgage loans or home equity loans. With an unsecured loan, there is no type of collateral for the loan, thus this type of loan offers more risk to the lending company.

What to expect from unsecured personal loans

No collateral needed – unsecured personally loans are not guaranteed by putting up your home or other property as a guarantee of repayment of the loan.

Higher interest rates – since the unsecured personal loans do not require collateral the interest rates are higher than other loans, however are usually lower than the interest rates on most credit cards.

Terms are fixed – unsecured personal loans are always due at a specific time set forth in the terms, which makes the interest rate fixed as well.

Line of credit is revolving – if you choose this type of unsecured personal loan it works similar to a credit card, which will make the interest rate variable instead of fixed.

Not tax deductible – the interest on unsecured personal loans are not tax deductible.

For those that do not own a home or have enough equity in their home, unsecured personal loans may be the best answer. The good news is that since the terms are fixed you will have to pay on time and pay back within the time frame set forth in the terms, which is better than using a credit card with the temptation to spend more and more only paying the smallest amount possible. In addition, since the interest rate is better with an unsecured personal loan, you will be off in the long run than using a credit card.

The disadvantages of unsecured personal loans is that the interest paid is not tax deductible and the interest rates can be more than 10% while mortgage loans and equity loans are often much less. You will pay more for an unsecured personal loan than using your home as collateral; however, on the flip side you will be risking your home.

Unsecured personal loans may be the best way to go for most individuals even if they do own their home and do not wish to use their home as collateral. No matter the reason why you need some quick cash, unsecured personal loans are better than using your credit card.

24 Comments

  • BHW said

    Howdy! I realize this is somewhat off-topic but I had
    to ask. Does operating a well-established blog like yours require a massive amount work?
    I'm brand new to writing a blog but I do write in my diary on a daily basis.
    I'd like to start a blog so I can easily share my experience and views online.
    Please let me know if you have any kind of recommendations or
    tips for brand new aspiring bloggers. Appreciate it!

  • csgo skins said

    Hey there would you mind sharing which blog platform you're working with?
    I'm going to start my own blog soon but I'm having a tough time choosing between BlogEngine/Wordpress/B2evolution and Drupal.
    The reason I ask is because your design and style
    seems different then most blogs and I'm looking for something completely unique.
    P.S My apologies for being off-topic but I had
    to ask!

  • phuotstore.vn said

    Today, I went to the beachfront with my children. I found
    a sea shell and gave it to my 4 year old daughter and said "You can hear the ocean if you put this to your ear." She put the shell to her ear and screamed.

    There was a hermit crab inside and it pinched her ear.
    She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

  • Major said

    I don't know whether it's just me or if perhaps everyone else
    experiencing problems with your website. It seems like some of
    the written text within your content are running off the screen.
    Can somebody else please comment and let me know if
    this is happening to them too? This may be a issue with my internet browser because
    I've had this happen previously. Cheers

  • Monroe said

    Hola! I've been reading your web site for a while
    now and finally got the courage to go ahead and
    give you a shout out from Huffman Tx! Just wanted to tell you keep up the fantastic job!

  • buy madden 17 coins said

    I know this if off topic but I'm looking into starting my own weblog and was curious
    what all is required to get setup? I'm assuming having a blog
    like yours would cost a pretty penny? I'm not very internet smart so I'm not 100% positive.
    Any recommendations or advice would be greatly appreciated.
    Thanks

  • csgo skins said

    Somebody necessarily help to make severely posts I'd
    state. This is the first time I frequented your web page and
    up to now? I surprised with the analysis you made
    to create this particular publish incredible. Wonderful process!

  • fifa 18 said

    Hi! I'm at work browsing your blog from my new iphone!
    Just wanted to say I love reading through your blog and look forward to all your posts!
    Keep up the excellent work!

  • buy fifa 18 coins said

    Very good blog! Do you have any helpful hints for
    aspiring writers? I'm hoping to start my own site soon but I'm
    a little lost on everything. Would you advise starting with
    a free platform like Wordpress or go for a paid option? There are so
    many choices out there that I'm completely confused .. Any ideas?
    Thanks!

  • cheap madden mobile coins said

    Admiring the persistence you put into your blog and detailed
    information you offer. It's nice to come across a blog every
    once in a while that isn't the same unwanted rehashed material.
    Great read! I've saved your site and I'm including your RSS feeds to my Google account.

  • Hudson said

    We're a bunch of volunteers and opening a new scheme in our
    community. Your site provided us with valuable information to work on. You've done a formidable activity and our entire community can be grateful to you.

Add a Comment