Welcome to Loans Guide
Interest Only 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.
Interest Only Loans News
FSA: Lenders have asked for interest-only ban - Money Marketing
 Money Marketing | FSA: Lenders have asked for interest-only ban Money Marketing The FSA says a number of lenders have asked it to ban interest-only lending as part of the mortgage market review. In its final MMR consultation paper, published in December, the regulator proposed lenders calculate interest-only loans on a capital and ... MBE Manchester: Lenders ask FSA to ban interest-only |
Sen. Grassley rails against 'immorality' of student loan interest rate - Waterloo Cedar Falls Courier
Sen. Grassley rails against 'immorality' of student loan interest rate Waterloo Cedar Falls Courier “The only dispute is how to pay for it.” In that regard, the stalemate over preventing interest rates from going from 3.4 percent to 6.8 percent hasn't changed. Democrats prefer closing what they call tax loopholes to cover the $6 billion-a-year cost ... |
Payday loan companies are booming.. but new laws could crack down on ... - Scottish Daily Record
 Left Foot Forward | Payday loan companies are booming.. but new laws could crack down on ... Scottish Daily Record It'S the only boom industry in a recession. Payday loan companies with extortionate interest rates are on every high street and are spreading like a plague online. The firms, such as Wonga, who sponsor Scottish Cup winners Hearts, don't just target ... Attempts To Cap Pay Day Loans Defeated In Commons Creasy seeks cross-party support for payday loans cap MPs & Public Back End to Legal Loan Sharking in UK as MP pushes for Legislation |
TEXT-Fitch raises 2 classes of MSDW 2001-TOP1 - Reuters
TEXT-Fitch raises 2 classes of MSDW 2001-TOP1 Reuters The pool has become extremely concentrated with only 25 loans remaining, two of which are defeased (4.7% of the current pool balance). Fitch has identified 11 Fitch Loans of Concern (59.8%), four of which are specially-serviced (35.2%). Fitch Downgrades Two Classes of CSFB 2001-CF2 |
Rate of late auto-loan payments sank to lowest level since 1999 in 1st quarter - Chicago Tribune
 InsideARM | Rate of late auto-loan payments sank to lowest level since 1999 in 1st quarter Chicago Tribune "The data show consumers are, in fact, paying their auto loans more on time than other loan products." A lower rate of unpaid auto loans is good news for car shoppers, because it makes banks more willing to make auto loans, Turek added. Low interest ... TransUnion: National Auto Loan Delinquencies Hit Lowest Level on Record |