Welcome to Loans Guide
Loans Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
The Facts Behind Unsecured Loans
from:Unsecured loans have been around of many years and are possibly one of the earliest forms of loans. Unsecured loans are not provided based on any type of collateral; rather they are based solely on the lenders belief that the borrower has the ability to pay. In an unsecured loan the lender is taking most of the risk as he or she is counting on the borrower to repay according to the terms of the loan. A secured loan is just the opposite, the borrower provides some type of collateral to basically assure the lender that even if they do not pay the loan as per the terms, the lender will still have the collateral which will be equal or greater in value than the loan itself.
Credit cards are the most common example of unsecured loans. The credit card company provides you with access to specific amounts of credit and in return you are able to buy items with the credit. If you don't pay the monthly bill, the credit card company is not able to simply come and get the items you purchased, all they can do is go through a legal proceeding to try to recoup their losses. Of course unsecured loans such as credit cards charge all borrowers higher interest rates to make up for the people that don't pay.
Typically people with good or high credit scores are more likely to qualify for an unsecured loan. Those individuals with bad credit or a poor history of making payments are far less likely to either qualify for unsecured loans or be able to get an unsecured loan at a reasonable interest rate. Think of unsecured loans as personal loans, which will help make sense of why some people are more likely to qualify than others. In all reputable loan companies your credit report will be pulled and reviewed, so being honest on the loan application is important. Know what your credit score is before applying for a loan to better understand your position with regards to getting a loan.
If you have bad or poor credit, there is still a possibility of getting an unsecured loan or even possibly using some type of collateral for a secured loan. Different banks and lenders may be willing to work with you for a loan, depending on how much you wish to borrow and if you have a good work history or possibly even a co-signer. Some companies will work with individuals with poor credit but a solid work history or those that are willing to work with the lender to rebuild their credit through the use of secured credit cards.
Loans Specific links
Loans News
Commercial loans straining Minnesota banks - Minneapolis Star Tribune
 Emirates Business 24/7 | Commercial loans straining Minnesota banks Minneapolis Star Tribune, MN - But bank watchdogs who spoke in Bloomington on Wednesday warned that the list already is growing longer -- thanks to loans going bad in a hurry. ... 'Marketplace' Report: Broke Banks FDIC Weighs Tapping Treasury as Funds Run Low Florida banks net income plunges in second quarter |
More Trouble in Savings & Loan Industry - Wall Street Journal Blogs
 Houston Chronicle | More Trouble in Savings & Loan Industry Wall Street Journal Blogs, NY - The Treasury Department’s Office of Thrift Supervision released its quarterly review of the savings and loan industry Wednesday. Some key points: There were ... US Savings & Loans Institutions Post Second Largest Loss Ever Thrifts Posted $5.4 Billion Loss in Second Quarter (Update2) US Thrifts Lost $5.4B in Second Quarter |
More mortgage tips: The lowdown on home loans - Indianapolis Star
More mortgage tips: The lowdown on home loans Indianapolis Star, United States - Know the loan terms before signing. "Ask the lender for a good-faith estimate that should be used as a basis to confirm the final numbers. ... Mortgage Applications Increase Slightly In Latest MBA Weekly Survey Mortgage applications up 1st time in 3 weeks: report |
Delinquencies, Losses Continue to Rise On Loans Backing ... - Wall Street Journal
Delinquencies, Losses Continue to Rise On Loans Backing ... Wall Street Journal - By LAUREN POLLOCK Delinquencies and losses on pools of loans backing US residential mortgage-backed securities issued in 2006 and 2007 continued to weaken ... Moody's reviewing jumbo mortgage securities as loan defaults soar Moody's Reviewing All 2006, 2007 Jumbo Mortgage Bonds (Update1) Many mortgage bonds weakened in 1st half -Moody's |
US loans to Detroit 3 will have strings - Detroit Free Press
US loans to Detroit 3 will have strings Detroit Free Press, United States - ... are letting it be known that they may not all survive until 2010 unless Washington provides them access to as much as $50 billion in low-cost loans. ... |