How to Find Non Collateral Loans
Lenders like to secure collateral like your home, car or other assets to guarantee loans in case you fail to make the payments. Often individuals who need a loan don't have collateral. Depending on the amount of money you need to borrow, you may be able to find a non-collateral loan, also known as an unsecured loan. Read on to learn more.
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Instructions
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Visit with your bank's loan officer. He can go over the types of non-collateral loans available through the bank. The programs offer you different interest rates, terms and fees. In order to help you find the best loan, you may need to authorize the loan officer to pull your credit report.
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Use a loan broker. Loan brokers generally have agreements with several lenders and can find you the best option for an unsecured loan. You provide all your information to the broker and she turns it in to the lenders. The broker should offer several quotes from different financial institutions.
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Get a credit card that allows cash advances. Credit cards are unsecured loans from credit companies. You pay a higher interest rate when you use the cash advance option. Some cards limit the amount of credit you can use for a cash advance. Sometimes banks charge a fee in addition to your credit cards fee to process a cash advance.
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Look for personal loans. People to people lenders like Prosper offer personal loans to individuals who need non-collateral loans. You need a solid loan proposal which includes the reason for the loan, your income and other supporting documents. Prosper bases the interest rate on your credit score and debt to income ratio.
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Be prepared to pay more for a non-collateral loan. When you calculate the amount you can borrow, you need to remember that lenders charge a higher interest rate and fees for non-collateral loans than secured loans. Know your credit score and if need be, look for lenders who offers bad credit loans.
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Tips & Warnings
Some loan brokers may not offer you the best deal if they have a lender they prefer to use.
