Unsecured Loan 2020-04-25 08:00:00

Unsecured Loan

An unsecured loan is one that does not require collateral. Rather than being backed by a physical asset, the loan is only backed by the borrower’s creditworthiness. Because banks are taking on higher risks with an unsecured loan, they charge higher interest rates. These higher interest rates help to offset some of the loan losses that the bank will inevitably experience.

To receive the best-unsecured loan interest rates, borrowers must have a high credit score. Those with lower credit scores can still receive an unsecured loan but may need a cosigner, who will be responsible for the loan if the primary borrower is unable to make payments. Examples of unsecured loans include credit cards, student loans, and personal loans.

 


Download our guide to real estate investing

Another Way To Own Investment Properties

Learn new ways to use real estate to pursue your wealth goals.

By providing your email and phone number, you are opting to receive communications from Realized. If you receive a text message and choose to stop receiving further messages, reply STOP to immediately unsubscribe. Msg & Data rates may apply. To manage receiving emails from Realized visit the Manage Preferences link in any email received.

Another Way To Own Investment Properties

Download our guide to real estate investing Seek an Upgraded Real Estate Portfolio
Download eBook