Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured loan. An unsecured loan is a loan which does not require you to have any collateral to secure the loan against.

As the loan is not secured against any of your assets you do need to have a positive credit history in order to qualify for an unsecured personal loan.

People who use unsecured loans are generally those who are not in a position to offer to collateral for example, people who don't own a home or have a poor credit history, County court judgements, mortgage arrears or debt problems.

Providers of secured loans will only supply someone with a loan if they have adequate collateral to secure the loan. An unsecured loan provider does not require an individual to have any collateral, this loan is ideal for people who rent their homes.

Although you aren't required to offer your home as collateral, it is worth highlighting that many a loan company still require you to be a home owner in order to be eligible to apply for an unsecured loan.

The benefit of an unsecured loan is that you do not need to own your home to qualify for a loan. You will typically be able to borrow between £1,000 and £10,000.

Unsecured loans can be agreed for tenants as well as home owners whereas secured loans are only available to homeowners.

Owing to the fact that you will not have to offer your home as collateral against the loan, an unsecured loan offer less risk to the person taking out the loan than a secured loan.

Unsecured loans can complete quicker than secured loans making the money available to you sooner. One of the main benefits of unsecured loans is the quick turnaround in applying for one.

Since an unsecured loan does not require your home to be valued before the application can proceed. The turnaround from making an application to receiving an answer, and ultimately your loan, is much quicker.

You may be able to get short terms on a small unsecured loan because often the shortest term for a secured loan is five years.

Another benefit of unsecured loans is the fact that the success rate of applicants is very high, and although adverse credit records, CCJ's, mortgage arrears or debt issues will not affect the loan application, it should be remembered that the better the credit record, the better the loan terms and rates are likely to be.

Unsecured personal loans can be used for a variety of reasons, including, home improvements, debt consolidation , mortgage arrears, new car or a luxury holiday.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

Why Choose a Secured Personal Loan?

Listed below are some of the many reasons why you... Read More

Refinancing Your Auto Loan

Refinancing your loan is one of the best kept secrets... Read More

Second Mortgage Loans

A second mortgage is a loan that is secured by... Read More

A Look at Getting a Bad Credit Personal Loan

Trying to get a bad credit personal loan can be... Read More

Finding a Loan With Bad Credit

No matter what your credit history is the simple fact... Read More

Bad Credit Wedding Loans in Case You want to Race Towards the Altar with Bad Credit

So you are engaged. Congratulations. It was not easy. What?... Read More

Guide to Unsecured Loans

Outlined below is a guide to unsecured loans. It will... Read More

Business Loans: If You Know How To Make Good Use Of Money And Expertise

Are their rewards of being your own boss? Yes, in... Read More

PayDay & Cash Advance Loans Online ? How Do Online Payday Loans Work?

How online payday loans or cash advance loans work? Online... Read More

Payday Loan and Cash Advance Lenders Online - How To Compare Them

When searching for a payday loan company online to get... Read More

Be Careful With Loans For Bad Credit

If you're saddled with debt or find yourself in an... Read More

What is a Secured Personal Loan?

A secured personal loan is the generic term for a... Read More

What Type of Loan Do You Need?

There are many types of loans available to consumers. There... Read More

What is a Personal Secured Loan?

A personal secured loan is the generic term for a... Read More

To Find The Right Loan You Must First Find The Right Lender

We have found internet shoppers to be the savviest in... Read More

Finding the UK Loan that You Need

Because it can sometimes be difficult to find a UK... Read More

Finding A Thin Credit Or No Credit Motorcycle Loan

It is no secret that thin or no credit can... Read More

Debt Consolidation Tips

Here are some useful Debt Consolidation tips. Debt consolidation is... Read More

A Heavenly Wedding - Courtesy Wedding Loans

You always dreamt of walking down the aisle in style.... Read More

Business Loans from Family - A Good Idea?

Can I Ask my Family for a Loan to Pay... Read More

Can A Pay Day Loan Truly Be Easy?

If you're looking to find an easy payday loan it's... Read More

Seven Tips For Credit-Enhancing Your Business Loan

What are the avenues available to businesses with weak credit... Read More

Financial Openings Without Warranty Alias Unsecured Personal Loans

Isn't it the trillionth article on unsecured loans? All are... Read More

All About Student Loans

A student loan is an unsecured loan made by lenders... Read More

Unsecured Loans

The term unsecured loan relates to a loan which is... Read More

125% Equity Home Loans

If you are a homeowner in need of a home... Read More

What is a Tenant Loan?

Ever wondered what is a Tenant Loan? A tenant loan... Read More

Fast Cash Now Easier Than Ever, but at a Price?

Because of the Internet, quick payday loans are faster than... Read More

Government Loans for Beginners

Government loans are those that the government of a country... Read More

What is Credit Insurance?

Are you wondering what is credit insurance? Very simply, credit... Read More

Where to Look for a Fast Homeowner Loan

If you're looking for a fast homeowner loan, you might... Read More

Demystify the Allegorical Misinterpretation of Bad Credit Personal Loans

Every time you go for a loan, the bad credit... Read More

Benefits of a Personal Secured Loan

A Personal secured loan can offer many benefits, some of... Read More