Which Loan Should I Apply For?
Collateral: Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default, also called security. That means if you put up collateral for a loan, your assets can be seized; that is, you can lose your house or car. Another way to think of it: if the lender knows he stands to gain your house or car, he's got to feel much more secure in lending the money you need.
Now look at unsecured, another way of saying no collateral loan:
Unsecured: Backed not by collateral, but only by the integrity of the borrower; opposite of secured.
So when we're talking about "no collateral loans", that means we're talking about the lender's willingness to take your signature as your word, and in place of your house. For whatever reason, you need a loan. And you don't want to, or can't, pledge an asset as security. Commonly, collateral takes the form of a home, car or boat, or financial assets such certificates of deposit, stocks or bonds. So, your interest in applying for a no collateral loan may be because you don't have those assets. Or, you have them, but don't want to put them at risk of seizure.
Neither of those scenarios is uncommon. But when you look at the definition of "no collateral", you have to understand the significance of the phrase "opposite of secured". It's easy to understand why a lot of lenders shy away from no collateral loans, also known as unsecured loans or signature loans.
Thankfully, there are lenders who do offer no collateral loans. Payday Available can help you get the money you need fast and hassle-free.
So, if you don't want to put up collateral, but you do have good credit, do you have to pay sky-high rates and fees, too? Thankfully, no. There are lenders who specialize in no collateral loans to applicants with good credit, good work history and reasonable incomes. By doing so, they reduce the overall risk of no collateral loans, and are able to save their customers from high rates and fees.
Payday Available works with the nation's top lenders. Let us help you find money you need with the best rates and terms possible.