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.

---

Need a Personal Loan? Have Poor Credit? See if a Payday Loan Would Work For Your Needs

Poor credit and a financial emergency don't seem to mix... Read More

Federal Debt Consolidation Loans For Students

For American students, the U.S. Government came up with a... Read More

Loan Basics

There is more than one type of loan. Depending upon... Read More

When the Bank Says NO!

Factoring has been practiced for centuries. The Romans sold promissory... Read More

Useful Information About Homeowner Loans UK

Homeowner loans UK are a very versatile type of personal... Read More

See What Your Home is Worth

If you thought your home is worth nothing except for... Read More

Finding an Auto Loan with Bad Credit

Finding an auto loan online is easy regardless of you... Read More

Relax, Unwind, and Enjoy With American One Secured Personal Loans

Secured Personal Loans are those loans against which you don't... Read More

Why Choose a Homeowner Loan?

Outlined below are some of the reasons for choosing a... Read More

No Credit Check Payday Cash Advance Loan - Benefits to Using a Payday Loan

No Credit Check Payday Cash Advance Loan - Benefits to... Read More

What Is A Personal Loan?

Personal loans can be divided into two categories: secured personal... Read More

Are You Ready for Your Students Student Loans?

Your son or daughter is a high school senior and... Read More

Your Home Can Act As Carriage For Car Loans; Do You Know The Term For That? Secured Car Loans

Since the invention of the first self propelled car by... Read More

Quickest Payday Loans - Things To Look For in a Cash Advance Company For The Fastest Loan Processing

To find the quickest payday loans, you need to look... Read More

New Car Loans - How You Buy a New or Used Car With Poor Credit

Consumers buy a new or used car with poor credit... Read More

No Credit Car Loans - Even With No Credit History, You Can Still Get Approved

Even it you have no credit history, you can still... Read More

It Only Takes a Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that affects many former... Read More

Taking the Time to Find a Homeowner Loan UK

Trying to find a good homeowner loan UK can end... Read More

Payday Loans: How They Really Work!

Payday loan companies gives the borrower the amount of the... Read More

Cash Advance Company - Comparing Payday Loan Companies Online

Comparing payday loan companies online saves you time and money.... Read More

Bridging Loans - Fulfilling Financial Shortfall between Real Estate Transactions

You are trying to buy a new property and selling... Read More

Secured Personal Loans - What You Need To Know About

Loans that are secured against property are called secured personal... Read More

What is a Personal Secured Loan?

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

Compare Payday Loan or Cash Advance Lenders Online Before You Borrow

Comparing payday loan lenders, also called cash advance lenders, online... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More

5% Down Vs. 10% Down - A Comparison

It has always been an issue for home buyers to... Read More

A Guide to the Bad Credit Personal Loan

Here is a useful guide to the bad credit personal... Read More

Filling Out The Loan Application

1. Property information. The application begins with a section on... Read More

Get your Dream Car ? Get a Car Loan

You've probably spent years thinking that your dream car is... Read More

Steps You Can Take To Protect Your Financial Information and Personal Identity From Fraud

Financial fraud and identity fraud are one of the fasted... Read More

What is a Bad Credit Personal Loan?

A UK Bad Credit Personal Loan is a loan designed... Read More

Personal Loans and Lines of Credit

Personal LoansNormally, a personal loan is unsecured meaning there is... Read More

User Guide to Payday Loan Terminologies

Are you approaching towards a payday loan cash advance? Is... Read More