Unsecured Personal Loan Rates Comparison
Should You Get An Unsecured Personal Loan?
There are basically two types of personal loans that are available. They are secured loans and unsecured loans. Both loans have their pros and cons but you should look at each type and decide which one better fits your special needs.
Secured Loans
With a secured loan, you must put up something of value of in order to be approved. If you would like to secure your loan with an asset such as a house, car, or boat, you have the option to do so. But remember, if you default on this loan, the bank will take your asset in order to pay for their loss on your default. This type of loan is not considered to be that much of a risk for lenders because they get your assets if you don’t make payments. As a result, a secured loan is much easier to get than other types of loans. In addition, the interest rate is usually considerably less than a regular unsecured loan.
Unsecured Loans
On the flip side are unsecured loans. You do not have to put up any collateral in order to qualify for these loans. This can be seen as a good thing, but remember that although you won’t lose your asset if you default on the loan, you will lose points on your credit score. Unfortunately, since unsecured loans are not secured with your personal assets, lenders see this type of loan as being much more of a risk than a secured loan.
As a result, you will have to pay a higher interest rate if you are approved for this loan. In addition, it will be a lot harder to get approval for this type of loan. These are the kinds of loans that people will pursue when they want to send their kids to college, take a long vacation or buy expensive cars. Although the interest rate is higher than a secured loan, you can still get a very decent one if you have good credit.
All in all, look around for lenders that offer unsecured loans. It may have disadvantages as compared to secured loans but unsecured loans still have many advantages that can suit your personal needs.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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