Unsecured Personal Loans – Compare Unsecured Personal Loan Offers
There are essentially two major types of personal loans that are available: they are secured personal loans and unsecured personal loans.
Secured personal loans are the most widely available loans as they are extended to a wider segment of the population. It is possible though to get unsecured loans though and there are times when it is beneficial to do so.
What’s the Difference Between Secured and Unsecured Personal Loans?
There are many differences between the two. The most easily recognizable difference however is that unsecured loans require no collateral in order to secure the loan while secured loans do. The flip-side of this is that secured loans often have lower interest rates and better terms for the borrower than unsecured loans have to offer.
The reason for these higher rates of interest have to do with the fact that lending institutions are taking a greater risk by offering loans without some sort of security no matter how solid your credit history may be especially in the current economy.
Secured loans are often longer term loan than unsecured loans and may be for considerably larger amounts (though it is entirely possible to get a secured loan for a small amount of money as well). The bottom line for many people though is that it is disconcerting to offer property and possessions as collateral for loans because no one knows what the future holds. Economically, however, it is often better to take the risk in favour of securing lower interest rates and paying less over the lifetime of the loan.
When to Consider Unsecured Loans
Unsecured loans are only recommended for smaller amounts and when the loan can be repaid quickly. Higher interest rates really add up over time. This means that the longer your loan is paid the more money you will pay for the loan.
The shorter the duration of the loan; the better it will be for your wallet in the end. Common expenses that people take out these types of loans for include holiday expenses, back to school expenses, books for school, and even small vacation expenses. Larger expenses are better suited for secured loans and lower interest rates.
Before you decide to go with unsecured personal loans, explore your options. It could be that these present the perfect solution for your needs but you may discover that a secured loan will provide greater flexibility, more favourable terms, and even the possibility of lower interest rates.
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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