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Are you looking for unsecured loans?
If you’re in searching for financial help and looking for loan in market, There are plenty of products out there to serve your specific purpose.
You should be aware of this products, which is made for which purpose. Diversification in Financial product is made to avoid people using wrong kind of loan for wrong purpose. If you failed to do so you will be sometimes penalize by financial firm or if there where no penalties some products does not fit the the purpose solely as they might simply make burden over you if you use them incorrectly.
Suppose If you are looking for some quick cash, you may go for personal loan or cash advance or even Payday Loans, All 3 can solve your cash crises but ask your self few questions before choosing one, like how much amount you need, for how much time you will need that amount and how much total repayments costs you and do you afford to pay the loan as per agreement?
Don't waste your time. Get a loan online.
If you required small amount for small tenure then you can go for payday loans, If you required larger amount and need long duration to repay. then you should choose personal loans. they are flexible in repayment plus they can offer you much higher amount than that of the payday lender can provide. you can repay back in small installments over the time period of 2 to 5 years or more.
Again there are two types of this loans, Secured Loans and Unsecured Loans.
Secured Loans
Secured loans are those loans which are covered by borrowers collateral. Lender lends money based on valuation of whatever valuable asset is provided by consumer as collateral, In most cases collateral are Fully paid Home or Even Car. In case of car they call it car title loan.
In Case of defaulter, Lending firm has rights to own your collateral and legally acquire your property no matter how hard earned money you spent to own the asset. So this is very painful if you got messed up and unable to repay loan you took as secured loan. The chances of losing your valuable assets are narrow if you plan to repay it well, but still we don’t recommend it.
Unsecured Loans
In This type of loan, You don’t need to provide any collateral as security. Unsecured loans comes with higher risk to lenders as they don’t have any backup if borrower gets defaulter. So Unsecured Loans comes with higher interest than that of secured loans.
Types of unsecured loans include:
- Personal loans, which are paid in a lump sum and must be repaid over a given time; lenders have no control over how you spend the money. While interest rates on personal loans are higher than on secured ones, they are much lower than on credit cards. According to data from the Credit bureaus, The average interest on personal loans in the second quarter of 2020 was 9.50%, although you might qualify for a lower rate depending on your creditworthiness. The average interest rate for credit cards was 15.78%. We at Motiveloan provide best unsecured loans in market you must check out the rates before proceeding with any other lenders.
- Debt consolidation loans, which are a way to combine various other debts — typically unsecured ones —in one place, so you only have to make one monthly payment, generally at a lower annual percentage rate (the actual cost of repaying the loan). Note that there also are secured debt consolidation loans.
- Student loans, which usually have lower interest rates than personal loans. There are specific stipulations for their use, and different terms than a personal loan. Student loans can be obtained from the federal government as well as from private lenders.
- Credit cards, which are a form of unsecured debt giving you access to a certain amount of credit without time limits, as long as you’re meeting your repayment obligations.
Pros and Cons of Unsecured Loans
Pros
- You Don’t require collateral.
- Can help you consolidate high-interest debt with better terms
- Personal loans often come with fixed terms, so you can budget and plan for regular monthly payments
Cons
- May carry high interest rates and fees
- Often require a very good or excellent credit score, especially for good loan terms
- You may be approved for a smaller loan amount than with a secured loan, depending on your credit
Getting approved for Unsecured Loans:
To get qualify you need to go above 600s in credit scores, but if you want to secure best interest rates you must score 700 and above. that can guarantee you for the best rates.
Besides credit score another factor that affects to your borrowing capacity is your debt to income ratio. Ideally your monthly EMI should not exceeds 15% of your monthly income.
Make sure you understand the terms of the loan, like the interest rate, any application fees or upfront costs, if there are penalties for prepayment of the principal, and what the payment terms are. For unsecured loans, it’s especially important to understand what happens in case you default
The lender will also run a hard credit check, which will affect your credit score, before approving or rejecting the application. You’ll need to provide your Social Security number, a government-issued ID, and most likely proof of income. Depending on the lender, you could also be asked to provide an account of any outstanding debts and your employment history.
