There are many types of loans available to help with whatever financial situation you may find yourself in. Ultimately, whatever loan you choose will fall into one of two categories: secured loan or unsecured loan. Secured loans are large loans that require some type of collateral – either liquid assets or physical assets. A good example would be a mortgage loan or vehicle loan. Here at Lendah, we deal with unsecured loans.
What Types of Loans Are Unsecured?
Unsecured loans don’t require collateral like their counterparts. Here are a few examples of some common unsecured loans:
- Student loans
- Credit card loans
- Personal loans
The personal loan programs that we offer at Lendah differ depending on what you use that loan for. Before finding the right plan for you, we are intentional about looking into your finances holistically. Our personal loans are used for rebuilding credit, funding home renovations, and most importantly, debt consolidation.
Creditworthiness and Unsecured Loans
When applying for an unsecured loan, lenders look at your “creditworthiness” instead of asking for collateral. Essentially, that is how a lender determines how “worthy” you are of a new line of credit. According to Investopedia, creditworthiness is determined by “several factors including your repayment history and credit score. Some lending institutions also consider available assets and the number of liabilities you have when they determine the probability of default.” This is a benefit to you as a borrower because you won’t have to worry about a lien being placed on your house or any other collateral in case of default. This may become an issue if you have a lower credit score; however, Lendah has loan programs specifically designed to help you build your credit by paying off your credit card debt faster.
Why Choose Lendah?
Lendah is unique because our goal is to help you achieve financial freedom, not to swamp you in loans. Our financial experts have your best financial interests in mind as they work to find the loan program ideal for your financial needs. We seek out the lowest possible interest rate for your unsecured loans so that you can confidently consolidate your debt or fund unexpected renovations.
Have more questions about unsecured loans? Visit our website and get started by filling out a quick questionnaire. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.