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Mortgage Loans Debt
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Unsecured Loans - 2007/05/08 20:24
An unsecured loan does not require you to provide collateral as security should you default on payments, as this type of loan represents a greater risk to the lender of not being able to collect the full amount, the charges on an unsecured loan are greater than on a loan which is secured against property. The reason for this higher APR( Annual Percentage Rate ) is because the lender has no guarantee that the money will be repaid, and so cover themselves by taking out insurance policies to underwrite the amount lent, this extra cost to them is passed on to you the customer.
If you are not a homeowner, and do not have any assets to offer as security, then an unsecured loan is the only option available to you.
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Loans
