Contrary to secured loans, unsecured loans do not have collateral to secure the loan amount. Unsecured loans are considered higher risk because of the borrower defaults on the loan, the lender can only send the account to collections and not be able to seize any property to recoup the losses.
The credit card is the most common example of the unsecured loan. Unsecured loans are primarily underwritten with credit score, credit history, and income level as criteria to qualify. Unsecured loans are different from secured loans because the higher risk in an unsecured loan usually means a high interest rate, usually 20% and up.
TV detectives can open locks with them too.
ReplyDeletethx for the info!
ReplyDeletenice credit
ReplyDeletei will have to do that
ReplyDeletethanx for information
ReplyDeleteI DONT WANT TO TAKE A LOAN! I will be paying for it FOREVER!!!
ReplyDeleteI never knew that's what a credit card was.
ReplyDeleteWow i didn´t know that about credit cards
ReplyDeleteThanks!
UNLESS you've got damn good credit ! I always go unsecured if I can. Who wants to put up collateral ??
ReplyDeleteThanks for the info mate!
ReplyDeletejeez, unsecured loans sound like a loss for the company =/
ReplyDeleteThanks for the info! :D
ReplyDeletegreat info as always
ReplyDeleteI usually do see interest rates that high for some store credit cards.
ReplyDeletewow I never realized that about credit cards before, cheers dude
ReplyDeletegreat info man,thanks
ReplyDeletenever spend more than u make and youll be just fine (credit-wise)
ReplyDeletewow that is a really high rate
ReplyDeletethanks for financial advices
ReplyDeleteOkay, thanks for that info :)
ReplyDeleteGosh I never knew loans were so complicated! I feel much more informed now I will have to follow it
ReplyDeleteHope you find mine as informative
thank you for the information!
ReplyDeleteI love my credit card :#
ReplyDelete20% What a ripoff, lol.
ReplyDeleteI've never had a problem with over-spending on my credit card. I'm terrified of that 20% interest rate (I think it's actually closer to 30% with the low-income, student card that I have)
ReplyDeleteCredit Cards bad unless you know how to use them properly.
ReplyDeleteNever get a loan that isnt secure
ReplyDeletesame with payday loans, they are mostly unsecured and apprx 20% interest
ReplyDeleteunbelievable loans
ReplyDeleteI generally don't like loans, too much fine print and details.
ReplyDeletegreat post as always!
ReplyDeletewhats an example of a secure loan?
ReplyDeleteOh my. And so many people use credit cards too.
ReplyDeleteima check into what ive got
ReplyDeletenice post as always dude!
ReplyDeleteYa know, just because it's a higher risk doesn't mean you should charge me more interest. That's ridiculous.
ReplyDelete