Unsecured Personal Loan

If you’re starting out in your financial journey and need fast funds, you can benefit from an unsecured personal loan. There are a variety of unsecured personal loans that don’t require collateral or something valuable you own. Let’s take a closer look at how unsecured personal loans work so you can decide if these products can meet your unique financial needs.

What is an unsecured personal loan?

Unsecured personal loans let you borrow money without any collateral, like a house, car, or anything else of value. You repay it over time with interest and fees, according to the terms in your agreement. An unsecured personal loan can help you pay for almost any planned or unexpected expense, like a car repair, medical bill, or moving to a new house.

Types of unsecured personal loans

Many types of unsecured personal loans are available to people who may not have much money saved up, including:

Payday loans

Payday loans are short-term, small-dollar loans designed to hold you over until your next paycheck. You repay them when you get paid, typically within two to four weeks.

Installment loans

Installment loans are unsecured personal loans that offer a lump sum of money at once. You pay them back over time (anywhere from a few months to several years) through fixed monthly payments. It may be smart to get an installment loan if you need a lot of cash.

Lines of credit

Lines of credit are flexible loans. You can withdraw as much or as little as you’d like up to a set credit limit. Keep in mind that you’ll only need to pay interest on the amount you borrow. Compared to credit cards, lines of credit tend to have lower interest rates.

Student loans

Student loans are designed to help cover educational costs, like tuition and books. Some student loans are federal and come from the government, while others are private and offered through private lenders.

Credit cards

Credit cards let you make everyday purchases, up to a set credit limit. Unless you pay your balance in full every month, you’ll be on the hook for interest charges. Many credit cards offer rewards you can take advantage of, such as cash back and travel points.

Benefits of unsecured personal loans

There are several benefits unsecured personal loans offer, including:

Easy application process

Many lenders have an online application for unsecured personal loans that you can complete in minutes, from the comfort of your own home. You won’t have to step foot into a physical location.

Quick funding

Depending on the lender and loan type, you can receive the funds from an unsecured personal loan the same day you get approved, within 24 hours, or in a few business days. This is great news if you need cash to cover expenses immediately.

Manageable payments

If you take out an unsecured personal loan, you’ll be able to pay it back through convenient payments. You can usually budget for them in advance.

Good credit not needed

Even if you have poor or fair credit, you can still get approved for an unsecured personal loan. Many lenders have lenient requirements and are willing to consider other factors like your income and employment status.

How to apply for an unsecured personal loan

To apply for an unsecured personal loan, follow these steps:

  1. Gather all necessary documents and information: Make sure you have your ID and financial statements on hand, like your pay stubs and tax forms. You will need them to apply for an unsecured personal loan.
  2. Fill out an application: Visit the lender’s website and complete the application process. Be prepared to share basic personal and financial details. You may also need to attach some documents.
  3. Submit the application: Double-check your application for errors and inaccuracies to avoid delays in approval and funding. Then, submit it.
  4. Receive your funds: Upon approval for an unsecured personal loan, you’ll receive your funds or gain access to them, depending on the type of loan you took out. Many lenders offer same-day funding, so you likely won’t have to wait long. 

Should I get an unsecured personal loan?

If you don’t have a great credit score or are working on building your credit, an unsecured personal loan can come in handy. You might also consider one if you don’t have much money saved up yet or face an emergency expense. Finally, an unsecured personal loan can be a good idea if you need fast funds but don’t want to use collateral to borrow money.

Get an unsecured personal loan today

Advance America offers a variety of unsecured personal loans that come with easy applications and same-day funding, including payday loans, installment loans, and lines of credit. You may apply online and get your money quickly, sometimes within 24 hours. Visit Advance America today to learn about the unsecured personal loans we offer and start your application today.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
148+ million
loans issued
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25+ years
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