Most lenders require that you pledge collateral to receive the personal loan that you need. Many borrowers, however, are very reluctant to pledge collateral such as their homes or cars, in an uncertain economy in order to obtain a personal loan. If you are among those who do not wish to risk losing their home during the financial crisis to obtain a personal loan, then you should consider the no collateral unsecured personal loan for your funding requirements.
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No Need To Risk Your Collateral
When you pledge your home or automobile as collateral to secure a personal loan, the lender has many of the same rights as the lender who holds your mortgage to foreclose upon your home or repossess your automobile or other vehicle if you should default upon your personal loan payment. That is a risk that many borrowers refuse to take, regardless of their need to borrow money. These borrowers fear that if they were to lose their jobs due to the downturn in the economy, then they would not be able to make their payments. The unsecured personal loan requires no collateral and is therefore less risky to borrowers who have this concern, and is fairly easy to obtain if you have a decent credit score.
Get The Money You Need Now
You might need to borrow money for many reasons. Perhaps you are behind on your monthly bills and obligations and need to pay some of those bills or bring your accounts into a current status. Maybe you need to consolidate some of your debt because you are paying too much interest on various credit card accounts that you owe. Or you might be considering purchasing much needed new furniture or appliances for your home, or do some remodeling, add an addition such as a bathroom or bedroom, or even install a swimming pool. Your unsecured personal loan can assist you in these endeavors and more.
Borrow Up To $20,000
You can borrow as much as $20,000 or as little as $1,000 when you take out an unsecured personal loan. Be sure to borrow only an amount that you can comfortably repay based on your income and other obligations you might have to other creditors.
Depending upon the status of your credit, you might be required to apply for your unsecured personal loan alongside a creditworthy cosigner. A cosigner can be someone who is related to you - such as a parent, grandparent, uncle, aunt, sister, brother or other relative, or a friend or coworker. Basically anyone who believes in your ability to repay your unsecured personal loan can be your cosigner. Your cosigner would be responsible for repaying your unsecured personal loan if you fail to do so for any reason, or if you default on the terms of your loan agreement. Many lenders allow your cosigner to be released from any liability if you demonstrate a good payment history, sometimes in as little as a year.
You might consider applying with an online lender when you take out your unsecured personal loan. Online lenders traditionally have higher approval rates for borrowers of all credit types and can approve your loan in just minutes.