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Unsecured Loans
A loan where no collateral or security (for example, existing car or mortgage, or even a security deposit) is given or charged to the lender. Unsecured lending is viewed as higher risk than secured lending and interest rates are generally higher to reflect this.
Unsecured loan APR rates are much lower than standard credit cards, thus saving you more money in long run.
Typical APR for unsecured loans (signature loans):
| Unsecured Installment Loan |
<18% |
| Unsecured Home Improvement Loan |
<13% |
Don't forget that lender may ask you for a proof of home ownership and estimates for home improvement to get unsecured home improvement loan.
Unsecured Loan example:
Loan amount: $5,000
Term: 36 months
Example: A 3-year fixed-rate loan for a $5,000 unsecured loan. Based on a simple interest rate of 9.99%, this loan would have 35 monthly payments of $161.31 and 1 final payment of $ 161.31 and an annual percentage rate (APR) of 9.99%.
APR rate may increase if you chose not to use automatic payment method.
Don't forget that as with all loans, the credit is subject to approval and your loan may be declined due to bad credit history and missed payments.
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