Unsecured Personal Loans
An unsecured personal loan is the one which is granted solely on the creditworthiness of the applicant and is not backed by any collateral. In the simplest way, an unsecured personal loan is given on the basis of the applicant’s ability to pay back the loan. This type of a loan is usually issued to the people who have a high credit rating. Before you apply for an unsecured personal loan, you should very carefully go through the prerequisites and choose the best options for yourself.
Getting an Unsecured Personal Loan
You can either apply for an unsecured personal loan in a bank or a financial institution OR you can apply with online lenders.
- You can apply for an unsecured personal loan at a bank, a financial institution or a credit union. It is always good to go for a bank with whom the applicant already has relations. This is because the bank would already know you and your credit history and hence the chances of getting a loan would be higher.
- If you have a low credit score, you can apply with online credit lenders. These lender can offer you lower interest rates as their operating cost is lower than of real banks.
A number of times, people are duped by the lenders who promise to provide unsecured personal loans to people with low credit scores. You should always protect yourself from such lenders. They may seem tempting but they are not always a good option. You should only consider those lenders who are well known, licensed and reputable.
