When shopping for personal loans, borrowers will find that there are two main types of loans — secured personal loans and unsecured personal loans. A secured personal loan is backed by collateral, meaning something you own can be taken by the bank if you do not pay the loan under the agreed terms. An unsecured personal loan does not require any form of collateral for you to qualify.
Both types of personal loans have their pros and cons. With the growth of Fintech companies, unsecured personal loan usage is growing because borrowers have access to more options for lending. By the end of Q1 in 2019, 19.3 million Americans had at least one unsecured personal loan.
With so many lending options available, it can be tricky to decide the best option for you. Gathering the facts about both secured and unsecured personal loans is a great first step in taking out a personal loan.
No comments:
Post a Comment