All About Unsecured Loans

2007-03-08 10:33:40

( Financial )



If you are short on cash at the moment and you need a relatively small amount to fix your car, pay several credit card bills, you may opt to get fast secured or unsecured loans. Unsecured loans are given by the bank without the need for a savings account or collateral. These loans are mostly for people with good credit standing. If you have a less than stellar credit performance, secured loans are for you. You may need to establish a savings account with the bank almost equal to the amount you are borrowing, or put up collateral like your house or car.

First thing you need to decide on when getting unsecured loans is the amount of money you really need. You can even ask yourself what the absolute minimum amount is to see you through. Ask yourself if you have exhausted all the alternatives before getting unsecured loans. Once you have decided on the amount you need, do your research. Call several banks and shop around for the best unsecured or secured loan rates.

When getting unsecured loans, do not just look at your monthly payments. Make sure you look at the total loan amount as well. After the interest and the other charges on top of the original amount you are going to borrow, it may get so big it may not help you at all in the long run.

You should always check for hidden charges and any other extra fees. Ask for a breakdown and have your credit officer explain each and every charge for you.

Lastly, when getting unsecured loans make sure everything that is promised to you verbally by your bank is on paper. Read the contract and make sure everything you have agreed upon is in black and white. You have to keep in mind that verbal agreements do not count if they are not in your contract.


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