Tagged Unsecured

Good Use For Unsecured Lines Of Credit

Lines of Credit
by CIMMYT

Good Use For Unsecured Lines Of Credit

Article by Anthony Griswold

Copyright (c) 2008 Anthony Griswold

A lot of borrowers use cash for renovations, vacations, school, or other financial needs turn to equity lines of credit or other types of secured credit lines. These types of lines of credit are popular and relatively easy to obtain, but what if you do not have any equity or own a home to borrow against? If you find yourself in need of a line of credit but do not have any assets for collateral, or do not want to risk the assets you do have, and unsecured line of credit is another option for you.

An unsecured line of credit gives you the cash you need in the timeframe you need just like any other line of credit. Your credit line is based on an amount determined by your credit history, repayment ability, and income and you can use all or part of it as the need arises. The only difference between an unsecured line of credit and a secured one is that you do not have to put up any collateral but will have to pay a higher interest rate.

In order to qualify for an unsecured line of credit you will have to prove that you will be able to repay up to the full amount of the credit line in monthly payments. Your lender will analyze your debt to income level, your credit score and history, your employment history, and may want proof of income and job. If you have a responsible credit history and can afford the monthly payments on the credit line you will probably qualify.

An unsecured line of credit is right for you if you need a credit line but do not have assets to use as collateral. Be careful, however, because it will take more research to find the best deal as they carry higher interest rates than secured credit lines. Talk to the banks in your city to see what the going rate of interest is locally and how much you qualify to be approved for.

National lenders will often have some of the best rates so it is always a good idea to look online for national lender rates. If you cannot find a bank willing to give you an unsecured line of credit you can usually qualify for a credit card, but using a credit card for your cash needs can be risky as many have fees and very high interest. Look into all your options so that you can get the best deal possible on your credit line.

About the Author

Anthony Griswold creates articles about unsecured financing. He has years of experience and direct participation in dealing with unsecured personal and business loans. These articles are meant to be a tool for anyone seeking advice on unsecured financing.http://www.firstamerigo.com/

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How can I get a unsecured personal loan?

Question by daysha19: How can I get a unsecured personal loan?
I am 19 years old I have a job that pays minimum wage my monthly income is probably 450 and clearly this isnt gonna pay the bills i need a longterm personal loan maybe 3000 dollars my job doesnt have direct deposit and i dont have a bank account because I owe 200 dollars its a small fee but with all my other bills I cant pay it off is their any cash lenders with guaranteed approval I know thiers something out there I just really need help!

Best answer:

Answer by JC
There is no way to get an unsecured personal loan unless you credit is good and you have ample income to repay the loan. If you had those things, you wouldn’t need the loan. You in a way (please don’t take this the wrong way) sound like our government. You are asking for a way to deficit spend with no way to repay the loan. you need to find a way to either increase income or reduce expenses or both. there are no simple solutions here.

Update: If you contact this guy who is advertising loans, you will need to pay fees and it is likely a scam. Don’t fall for it.

Know better? Leave your own answer in the comments!