UFS will get you the best rates, fast.
Many lenders provide unsecured loans as just one of several products they offer, but they don’t usually specialize in unsecured loan products. We’re a bit different. To get you the best rate, we look at both secured and unsecured loans and lines of credit depending on your unique situation.
With over 15 years focused on providing non-collateralized, unsecured loans for personal and business use, we are unsecured loan experts. Our insider knowledge, banking industry relationships and expert staff are at your disposal.
Differences between secure vs. unsecured loans and lines of credit
The main difference between a secured and unsecured loan is that unsecured loans do not require collateral. In contrast, a secured loan requires the borrower to pledge their home, vehicle, cash or other assets as a guarantee. Each lender has its own criteria when evaluating these loans.
There are numerous types of secured and unsecured loans and lines of credit. The easiest way to identify if a loan is secured or unsecured is to determine if the loan requires collateral. For example, an auto loan is a secured loan because the automobile is collateral for the loan. Conversely, personal loans and credit cards are unsecured lines of credit because they require no collateral.
My wife and I purchased our neighborhood bar. We had ZERO collateral. These guys made it happen. We were funded about $160K, unsecured. Decent rates, too. Chris Fuller, Craig Johnson, and Alex Cantu are all very polite and professional. They have been a pleasure to work with. Without these guys, we would still be working at our old jobs. Thanks guys!– Matthew V.
Advantages of a secured loan or line of credit
In the event of a borrower defaulting on their secured loan, their assets are collected by the bank. Because a secured loan requires collateral, the lender has less financial risk with secured loans. Thus, one advantage of a secured loan for a lender is the level of the financial risk involved. The advantages of a secured loan for a borrower include larger loan amounts offered by lenders. Some lenders will offer larger loan amounts compared to an unsecured loan. The reason for this is because the lender of a secured loan takes on less risk if a borrower defaults.
Advantages of an unsecured loan or line of credit
The main advantage of an unsecured loan is that there is no collateral required for the loan. It works great for borrowers who do not have equity in their homes because it allows them to borrow on their name, their signature if you will, and their established credit history.
Unsecured loans also work great for those that simply do not want to risk putting their hard earned assets on the line to obtain a loan, or for borrowers who want to make a large purchase like a boat, but want to own the property outright. These are but a few examples of the numerous uses for an unsecured loan.
No collateral required
No need to tap into home equity
Funds for business or personal use
Frequently asked questions
When a borrower receives an unsecured loan, they will have unsecured debt. Unsecured debt is debt with no collateral backing. Common examples of unsecured debt include unsecured personal loans, payday loans and credit cards. In general, a loan, debt or line of credit is not unsecured if it requires any collateral to be pledged.
To begin the process of getting an unsecured loan, a consumer or business fills out an application. Based upon a variety of criteria a lender determines if they are willing to loan some or all of the requested amount. When a loan is made available the borrower makes payments just like any other loan obligation. The timeline for this repayment schedule can vary and will be outlined in the loan terms agreement.
Since unsecured loans are not backed by collateral, in many instances the lender loses the money that they loaned the borrower. In the United States, laws on how a lender can remedy this vary by state. While there is no collateral to seize, lenders can use other methods, such as filing a legal claim. Let’s say a borrow of an unsecured loan has defaulted on that loan. The next step the lender can take is to file a legal claim against the borrower. If the lender wins and a judgement is obtained, they can then place a lien on the borrower’s house.
No lender can truly offer 100% approval guarantee, regardless of the loan type, amount and borrower history. When a lender says they have a 100% approval guarantee rate for an unsecured loan, there are always caveats that govern the claim. For unsecured loans, a lender will evaluate a borrower by examining their background, credit history and outstanding debt.
Unlike traditional loan products which are collateralize by a home, vehicle or other assets, borrowers Unlike traditional loan products, which are collateralized by a home, vehicle or other assets, borrowers qualify for unsecured loans based upon their creditworthiness and income. Thus, a lender determines whether a borrower has a good credit history or a typical amount of outstanding debt.