You know what an unsecured loan is, right? Well, if you aren’t sure it is a loan that requires no collateral to back up the funds lent out. In virtually all cases these types of loans go for much higher interest rates than secured loans as their risk factor increases. An online unsecured personal loan is one type of loan that truly carries a very high interest rate. Are you interested in obtaining one? If so, read on and we’ll explore just what these types of loans are all about.
An online unsecured personal loan is sometimes called a Payday loan or a Cash Advance loan. Both of these names suggest that they are short term loans meant to tide you over until you get paid. Here is what you should know about an Online Unsecured Personal Loan:
–Loan amounts vary, usually from $100 up to $5000.
–Loan terms are very short, typically 7, 14, or 30 days.
–Loan interest rates are high: usually $10 to $30 for every $100 borrowed.
–Loans are approved quickly, usually within one hour’s time.
–Loan funds are deposited to your checking account.
–Loan funds are repaid through your checking account.
–As many as 4 term extensions can be given through some lenders.
Clearly, an online unsecured personal loan should be a loan of last resort. When all fees are added in you could end up paying back as much as $300 on a $1000 loan you had for just one week. In some states these types of offers are illegal and you can bet various state attorney generals will be investigating this practice very closely.
Still, if you choose to get an online unsecured personal loan then you may find that all other options are closed to you anyway. This is particularly true if:
–You have recently filed for bankruptcy and are in need of some cash.
–Your credit rating is bad and no one will lend even a cent to you.
–All of your regular sources are tapped out: your credit card has no available funds or your cash advance limit has been tapped out to the max.
Again, proceed with caution before applying for one of these loans. Make certain that when the term period is up, the funds you need will truly be in your hands, otherwise you could be in worse trouble.