Monday, January 10, 2011

Unsecured Personal Loans - When You Are Your Guarantor and not Your Home

Sustainable development is at the heart of every human dream. You work hard every day and you grow emotionally and financially every day. Yet you find that you are still short of money when you want to buy something. There are smart ways to fill in for this financial gap. These are called personal loans. There is one personal loan for every occasion. Yes, even if you have no security to offer. There is a name for this smart borrowing method - unsecured personal loans.

Not everybody is easy with placing his home or any other dear possession for taking loans. This is highly understandable. The worst case scenario with secured personal loans is like repossession of home or property. May be it is just a possibility but still it is a possibility. If you do not want to comply with such a demand, unsecured personal loans are the ideal choice. If you are tenant then you won't find a better and a more deserving way to borrow money than unsecured personal loans!

Well, if unsecured personal loans don't ask for security, what do they ask for? Since loans are a profit making business what does the lender have in for him? Well that would be - interest rates. Interest rates for unsecured personal loans are higher. But that does not mean that Unsecured Personal Loans []
are expensive and out of reach of any regular borrower. Interest rates for unsecured personal loans are relatively higher than secured personal loans.

Interest rates for unsecured personal loans are well defined by banks and other lending institutions. Lenders may still find that they are not offered advertised interest rates for unsecured personal loans. Interest rates on loans are a very 'personal' thing. This implies that rates are dependent on some factors. Scoring well on these factors will mean getting better rates.

Credit ratings are a very good way to get better interest rates with unsecured personal loans. Since you are not placing any security, your credit rating will be a picture of your credit worthiness. Find out your credit score before you apply for unsecured personal loans. Unsecured personal loans are possible for those with bad credit history like late payments, arrears, CCJs, bankruptcy etc. It is not that you won't find unsecured personal loans for bad history; it is just that the accountability is in terms of interest rates.

Fixed or variable interest rates for unsecured personal loans are available. Interest rates are vulnerable grounds to tread on for both borrower and lender. They can make or break the loan lending decision for any borrower. Since borrowing market is basically consumer oriented, the choices for unsecured personal loans are many. In other terms it means - competition. Competition reduces interest rates and you may find better interest rates for your particular condition.

To find better rates for unsecured personal loans you would have to look through the internet. You will see extensive loan sites which offer unsecured personal loans. The loan amount that you qualify for with unsecured personal loans is £500-£25,000. Repayment term will be 6 months to 10 years. Unsecured personal loans can solve any kind of financial problem like holiday, home improvement, debt consolidation, wedding, car or whatever that shows up your doorway.

Unsecured personal loans at the end of the day are loans. It will have to be paid back. Though the lender cannot claim your property if you fail to repay but he can still legally claim his money through any civil procedure which will ultimately mean risking your home. Unsecured personal loans on which you have faltered will show in your credit ratings.

Unsecured loans take lesser time for approval. There is no collateral that has to be reviewed for approval. But before you apply have you reviewed the checklist. No?? Check for pre payment penalties, interest rate, loan term, reputation of lender, your credit rating. What else? Read, gather information, do whatever it takes to find a good unsecured personal loan. Just remember - there are ways to smart living and they don't always ask for guarantee



Community Member said...

I am Kenneth parkar and I am a member of some financial communities. I just visited your site ( and trust me you are doing a good job for your site. I read some of the articles of your site and I really found them worth reading. The quality of your content is excellent. It will help you to earn extra value from search engines.
After seeing this, I would like to do something for your site and that is for FREE!!. I love to write financial articles and I would like to contribute something for your site if you'll give me the permission. I can give you an original guest post and I assure you that it will be published only in your site.

Please let me know your thoughts. Waiting for your positive reply. Reach me at:
Thanks and Regards
Kenneth parkar

[Note: I have some financial sites with Good PR, I can also give you back link from there]

Nifty direct said...

Nifty Trading Tips

you have mentioned very useful and profitable message message for us
Intraday Stock Tips

Hunter said...

Useful financial article. However I hate loans, if you need money you should take loans your 3 monthly salaries, and nothing more, in order to get rid of it as quick as possible.


Storage said...
This comment has been removed by the author.
Storage said...