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UNSECURED LOANS INFORMATION
Please see information on Unsecured Loans below.
You might find the word 'unsecured' a bit unsettling, but an unsecured loan is actually a pretty safe option – and a lot less risky than some other loan types!
What is an Unsecured Loan?
Unsecured (or personal) loans are offered by many banks in Australia and are not secured against a large asset like a house or car. That means the lender needs another form of guarantee that you will pay back the loan. Rather than ask for physical assets, they will thoroughly check your credit file and assess whether or not they think you are suitable for the loan.
You might be approved for a personal loan even if your credit rating isn't perfect, but the interest rate may be higher as a result.
Where Can I get an Unsecured Loan?
You'll notice that many banks offer unsecured loans, but there are also independent lender that can provide them. Browse and shop around before you apply – this will give you the chance to find one which suits your personal needs.
How Much can I Borrow?
Because unsecured loans require a better credit rating than, say, a Payday loan, they generally have larger borrowing amounts. However, the amount you will be offered still depends on your personal circumstances.
Typically, an unsecured loan will start from around $1,000 and go upwards until about $25,000. The lender might offer more (or less) than this. If you want to borrow more, you could consider a secured loan (see information below).
What are the Risks?
Unsecured loans carry with them the risks that you might not be able to repay them. That is why it is important to really consider carefully before applying for one.
If you take an unsecured loan and find yourself barely managing to meet the regular repayments, you could end in a debt situation. In addition, your credit rating will be negatively affected and this could make it harder to get credit in the future – for a home loan or even a car.
Please Note: www.whichwaytopay.com.au is not authorised to give advice under the ASIC (Australian Securities & Investments Commission).
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