Unsecured Loans

Looking For Unsecured Loans Online?

Money is one commodity which predominantly has more demand than supply. Everyone has bills to pay and most of them land at the worst possible time. No matter how well you plan your finances, unexpected expenses are always bound to derail you. What would you do in such financially critical situations? Borrow! But from whom? Family? Friends? What if you could get the required money as early as the next working day, without having to knock on doors or ask for favours? Sounds perfect doesn’t it? However, when you apply for a loan, you are always required to provide collateral. Not really keen on putting up your assets as collateral? An unsecured loan is your answer.

What Are Unsecured Loans?

An unsecured loan is issued without the use of any assets as collateral. It is issued purely on the borrower’s credit worthiness. These are also called signature loans and personal loans. To compensate for the huge risk undertaken by the lenders, the interest rates are higher and these interests are not tax deductible.

Why Unsecured Personal Loans?

A personal loan can get you the required money within a short span of time. When your personal loan is unsecured, you not only get money quickly, but you get it collateral free. You get your money while all your assets are safe under your control. This doesn’t mean that getting a personal loan is a great plan for your financial future, it just means that it is a temporary solution to an immediate problem.

Credit Worth

When you apply for an unsecured personal loan, your credit worth is the deciding factor. You are generally judged on the 5 C’s of credit – Character, Capacity, Capital, Collateral and Conditions. All these factors are taken into account to judge your credit worthiness. If you have good credit, the interest rates are lower and when you don’t have good credit, your interest rates may be higher and you may even require a co-signer to get the loan.

Credit Scores

Credit scores are an easy way for lenders to assess your credit worthiness before they decide on your loan application. Instead of going through all your reports and file, all they have to do is look at this number and decide. This number is generated by a computer programme that reads through your reports, takes into consideration all data stored in various credit bureaus and comes up with a number accordingly.

Your credit scores are directly affected by the repayment of your loans. The better your repayment is, the higher your score. However, these are just numbers that give the lender a picture of your credit worthiness. These numbers are not the deciding factors on your loans. Lenders have their own way of assessing your credit worthiness. They may or may not consider these scores.

Co-Signing

Lenders require good credit to offer a personal unsecured loan. When your credit is not good enough, the risk undertaken by them is higher. Hence, they will require someone else with a good credit to co-sign the loan with you. This reduces the risk of the lender and they can collect the money from your co-signer if you default. By signing the loan agreement with you, your co-signer is vouching for your credibility and undertakes the responsibility to pay back the loan amount if you are unable to make the payments.

Types of Unsecured Loans:

If you are looking for unsecure loans, here are your options:

1. Signature Loans

This is the basic type of an unsecured personal loan where the loans are secured only by your signature – your promise to pay. These loans also help you build credit and make your future borrowings easier. One can also opt for unsecured instalment loans, where the borrowed money along with interest is paid off in fixed monthly instalments.

2. Credit Cards

This is one of the most common and popular form of borrowing. Here you are provided with a huge pool of money to borrow from as and when you want. Unlike signature loans, where a fixed amount is given to you in the beginning itself, credit cards give you the option to borrow how much ever you want, within your credit limit and you can pay them off as and when you can. However, the interest rates are very high with credit cards.

3. Student Loans

If you are a student, you can avail of these loans. These loans offer features that are hard to find in other loans, such as grace periods, flexible repayments etc.

4. Peer To Peer Loans

In today’s technologically advanced world, one can get a number of unsecured loans online. All you have to do is post your requirement online with a website like loanshop1.com and you will get quick responses from interested people. Online unsecured loans have competitive interest rates which are generally fixed throughout the loan period.

5. Default In Repayment

Usually when the borrower defaults in their repayment of the loans, the lender uses the collateral to collect his money. However, in case of unsecured loans, where there is no collateral attached, the lenders can take various legal actions against the borrower to collect their money.

6. Unsecure Personal Loans Online

In today’s world, it is easy to find loans online. All you have to do is apply for a loan on a website like loanshop1.com by filling out an easy application and we will connect you with willing lenders. and We do not lend you the money, but we find you willing lenders. You can get your money as early as the very next working day.

The unique factor on choosing our services is that we provide services for people who are looking for small unsecured personal loans too. There’s no such thing as a loan amount that’s too little. You don’t have to go knocking on doors of friends or relatives or even your banks, you can get a fast unsecured loan by employing our services.

Stop worrying about your money troubles. With unsecured online loans you can not only get the money you want, but you can get it without having to wait in line or answer embarrassing questions posed by known faces you run into, at the bank.

Come to us and we will make your life easier.