Long Term Unsecured Loan?

In order to understand qualifications for loan approval, let's examine the types of loans; secured and unsecured, and the two types of re-payment plans: short term and long term.

Secured loans have both short and long term repayment plans. These types of loans are secured by a form of collateral, such as the equity in a home or auto. Some lenders will also accept stocks and bonds as security against the loan.

Because these types of loans are secured, the risk to lenders is minimized and allows borrowers to enjoy lower interest rates than unsecured loans. And; even if there are still payments due on an existing auto or home loan, it's possible to get a lower rate than the original loan terms, particularly if the borrower's credit had improved.

Unsecured loans generally have only a short term repayment plan. The most common type of unsecured loan is a payday cash advance, or a signature (personal loan) from a bank. The payday cash advance is a much shorter term loan, most commonly to extend only until the recipient's following payday. A bank signature loan; however, generally has a one year repayment plan. Another main difference between these two types of loans is how the interest rate is calculated. A payday cash advance charges a fee instead of an interest rate, but Federal regulations require lenders to provide an "interest computation" so borrowers can compare rates amongst various loan products and lenders. When a payday cash advance fee is transformed to an interest rate, the sum is much higher than a bank signature loan, which is an actual percentage rate charged over the duration of the loan. But there's yet one more difference between these two loans which makes payday cash advances more accessible. Whereas a bank signature loan requires favorable credit, a payday cash advance does not, making this an attractive loan for bad credit people.

Your credit rating, assets, and the eagerness of a lender to issue a loan, all determine which types of loans you are qualified for. If you have favorable credit, consult your local bank loan officer or; if you desire a business loan, your local SBA. If you have troubled credit, instead of seeking a long term unsecured loan, consider alternatives such as using your home or auto as collateral for a secured long term loan, or consider a payday cash advance for a short term unsecured loan.

Toni Phelps is the Research Manager of http://www.creditfederal.com where you can find more information regarding loans.


Free Quran in All Languages

Free Tafsir Books

How to Finance a Small Business

Confused by how to finance a small business? One key... Read More

Finding and Getting Bad Credit Loans

If you don't know where to turn for bad credit... Read More

To Be Mr. and Mrs. Sometimes You Need Wedding Loans

The conception of wedding has changed over the years. Its... Read More

All About Student Loans

A student loan is an unsecured loan made by lenders... Read More

Getting Good Value Personal Loans

Over recent years, personal loans have become a popular solution... Read More

Fast Cash Payday Loans

If you need cash now there are several options available... Read More

How To Apply For a Business Loan

Worried about how to apply for a business loan? Although... Read More

How To Save Money On Car Loans

Have you noticed that everyone seems to have a newer... Read More

Compare Payday Loan or Cash Advance Lenders Online Before You Borrow

Comparing payday loan lenders, also called cash advance lenders, online... Read More

Military Loan and Military Loans

Military loans are made available to active servicemen and retirees... Read More

Everything You Need to Know About a Secured Loan

If you're not familiar with the term, a secured loan... Read More

Benefits of an Unsecured Loan

Listed below are some of the benefits of an unsecured... Read More

A Renter in Debt? Take Out a Bad Credit Personal Loan

On average, homeowner households earn 95% more than renting households... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More

Getting the Best Auto Loan Rates

Getting a good auto loan rate is not luck, but... Read More

Should You Ever Take a Payday Loan?

Payday loans have many names -- cash advances, signature loans... Read More

Guide to Personal Loans

Here is a useful guide to Personal loans. What is... Read More

Secured Personal Loans - What You Need To Know About

Loans that are secured against property are called secured personal... Read More

Military Payday Loans

What is a payday loan? This is a small short-term... Read More

A Beginners Guide to Bad Credit Secured Loans

Here is a useful beginner's guide to bad credit secured... Read More

Bridging the Gap ? through Bridging Loans

You were on your regular walk with your wife, and... Read More

What is a Loan?

A loan is money that you borrow and agree to... Read More

Holiday Personal Loans ? When the Traveller Within You Wants to Break Free

If you are a traveller by heart then perhaps every... Read More

Benefits of a Home Improvement Loan

Some of the many benefits of a Home Improvement Loan... Read More

Unsecured Loans

The term unsecured loan relates to a loan which is... Read More