You’re making the right choice by choosing an unsecured personal loan or line of credit! Unsecured Funding Source offers you the best chance of getting approved and receiving your money fast, with terms you can afford! We take the guessing out of the finance game and help ensure you are approved for the most amount of money possible, at the best rates and terms available. Simply select the program that best fits your need and Get Started Today!
You have worked hard to earn the assets you have. Now reward your responsible credit history with an unsecured loan or line of credit! Checkout the great uses and benefits of our service you can expect!
What are unsecured personal loans?
An unsecured personal loan is a type of installment loan that can be taken out for various reasons. For example, you can take out a personal loan to pay for upcoming wedding expenses or other major purchases. As an installment loan, you borrow the full amount of the unsecured personal loan upfront. Then, you make fixed payments over time to pay back that loan amount.
Unsecured personal loans have numerous applications. Some common uses that borrowers use unsecured personal loans for include improvements to their home, consolidation of credit or even vacations.
Benefits of an unsecured personal loan or line of credit
Features of a personal loans
Advantages of applying for an unsecured personal loan
A major benefit of getting an unsecured personal loan is that it doesn’t require collateral. In other words, you won’t be asked to put up an asset as collateral for an unsecured loan like you would for a home equity or 401(k) rollover loan, for example. Thus, borrowers benefit from not having to put up their hard-earned assets when borrowing an unsecured loan.
Unsecured personal loans are extremely flexible and can be used for almost anything. If the loan is used to purchase or start a business, business financials and other documentation are not needed—unlike an SBA loan, for example—as loan approval is based on the credit-worthiness of the borrower alone.
Requirements for an unsecured personal loan
Because an unsecured loan doesn’t require collateral, lenders use other methods to qualify a borrower for a loan.
To start, a borrower must fill out an application for the loan. Depending on the lender, borrowers are typically required to provide documentation that verifies their income via pay stubs or tax returns when applying for an unsecured personal loan.
A lender then uses various criteria to determine if they are willing to pay the borrower the entire loan amount or part of the loan amount. For an unsecured personal loan, this criteria can include the creditworthiness of the borrower— a borrower with good credit is more likely to receive an unsecured personal loan.
Unsecured personal loan FAQs
You can use an unsecured personal loan for almost anything! This even includes using your loan to cover the costs of starting up or buying a business or franchise.
Before applying for a personal loan, UFS will do a soft credit check. This soft check looks at your credit score without impacting it to let you know if you qualify. Applying for an unsecured personal loan will involve a hard credit check. This check typically only lowers your score by five points or less, and multiple inquiries within a given amount of time are often only scored as a single inquiry. Other impacts of a personal loan on your credit score can occur if you default on a loan. This can result in a much larger decrease to your credit score.
The main difference between secured and unsecured personal loans is that unsecured personal loans require no collateral. Secured loans can provide larger loan amounts because the lender has less financial risk with offering secured loans. However, unsecured loans allow the borrower to take advantage of reasonable interest rates while avoiding risking their hard-earned assets.
The interest rate for any loan will depend on several factors, including overall factors in the economy and the credit policies of each individual lender. At UFS, the interest rates for unsecured personal loans can be as low as 5.99% with qualifying credit.