Best Unsecured Personal Loans from LoanNow – Easier, Better & Faster!
There are two basic type of credit: secured and unsecured. Credit cards and most personal loans represent unsecured credit. Mortgages and car notes are secured credit. In most cases, obtaining unsecured credit requires borrowers to demonstrate that they are creditworthy by passing some form of credit check.
While most people prefer unsecured credit, it’s not always the best choice. Unsecured credit cards targeted for customers with bad credit typically carry stiff fees, high interest rates and low credit limits. The same is true for payday loans, which are also frequently geared for customers who would otherwise be turned down for unsecured loans. Fortunately, LoanNow represents and alternative to payday loans for many customers who cannot qualify for unsecured loans from banks or credit unions.
With unsecured loans and credit cards, lenders and merchants essentially trust you to repay your financial obligations. If lenders happen to be close friends or family members, that trust is largely based on years of association and no small measure of affection. Unsecured credit from your local community bank or credit union may also be granted based on a long-standing relationship with the financial institution. But in general, banks and credit card companies approve unsecured loans and credit cards based on your credit profile, and especially your FICO score.
Secured credit is based not on trust or evidence of creditworthiness, but on a guarantee of repayment in the form of collateral. For instance, mortgages and car notes are guaranteed by the house or the car the loans are used to purchase. Pawn shops require borrowers to provide tangible property that is held until their loans are paid in full. Secured credit cards are guaranteed by deposits in specified bank accounts that cardholders are not permitted to access.
For applicants with damaged credit, secured cards may be the only way to obtain access to credit cards. This is not the case where loans are concerned. Payday lenders regularly offer unsecured loans to borrowers with limited income and credit, but not for altruistic reasons. Payday lenders particularly target customers who find it difficult to qualify for unsecured loans from banks and credit unions but who hold steady jobs or have access to other forms of regular income. They provide loans with repayment periods that are pegged to borrowers pay dates – which often means that the entire loan is due in full within one or two weeks.
LoanNow: LoanNow also provides unsecured loans and we also frequently approve applicants that banks turn down. But the similarity to payday loans ends there. Our superior risk-based underwriting system evaluates applicants’ entire financial history while still producing lower default rates than payday loans. Our repayment periods are manageable, with monthly payments like those for bank loans. And we say no to rollovers and added fees. Experience the LoanNow difference for yourself today!