Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

What is an Unsecured Personal Loan?

If you need help covering unexpected expenses, you may be asking the question, “What is an unsecured personal loan?”

An unsecured personal loan is a loan given out without the involvement of any collateral. It is based solely on the trust that the borrower will pay back the money under the terms of the loan.

Unsecured vs. Secured Personal Loans

According to Investopedia:

“A loan that is issued and supported only by the borrower’s creditworthiness, rather than by a type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan. Borrowers generally must have high credit ratings to be approved for an unsecured loan.”

This is different from a secured loan, where an item of collateral such as a vehicle or piece of property is put down to secure the loan. If you fail to repay the loan, the lender takes the item of collateral.

What Is An Unsecured Personal Loan?

What do Unsecured Personal Loans Cover?

Most personal loans are taken out for things like costly medical procedures, home renovations, and vehicle purchases.

First Bank offers a personal credit line* that may or may not require any collateral. Typically, the better your credit history, the better your chances of qualifying for an unsecured personal loan. Because you’re not risking the loss of any collateral, unsecured personal loans typically come with higher interest rates than secured loans.

Contact First Bank Today

If you need an unsecured personal loan, seek out a First Bank location and speak to one of our friendly associates about getting the money you need.


*Loans subject to credit approval.

———

Sources:

Investopedia: http://www.investopedia.com/terms/u/unsecuredloan.asp#ixzz3sGyigwlj

Trending Topics

Best Bank for Checking Account – South Carolina

With options like First Bank, you shouldn’t have to feel uncertain about whether or not you’re making the right choices with your hard earned cash. Make the switch to First Bank and you’ll see why we are the best bank for...

First Bank: Financing Loans for Businesses

Choosing a bank to finance the right loan for your business is a critical decision. There are loans that cater to the established business looking to expand, and there are loans for the entrepreneur just getting started....

New Business Loan in Jacksonville, NC

First Bank helps businesses get off the ground in Jacksonville, NC with our new business loans and various sets of helping hands. Our new business loans can provide a lump sum of cash for your business to finance...

Compare First Bank Checking Accounts

If you’ve begun the process to compare bank accounts, it’s important that you review the options that differentiate them. Fortunately, you have a local partner in First Bank — a bank that offers a variety of checking...

Your Community Bank – Asheville NC

At First Bank, we believe that part of being your community bank in Asheville, NC, means offering services that meet the needs of everyone. From checking and savings accounts to mortgages and personal loans, First Bank...

Highest Yield Savings Account

A high yield savings account is a great way to grow your money over the long term. First Bank has several options for those searching for the highest yield savings account available to them. Read on to learn more about the...

Best Savings Account for Kids – Asheville, NC

If you have kids, one of the most valuable lessons you could teach them is the value of a dollar. But just like anything else, you don’t want to settle for just any old savings account. You want the best savings account...

Mortgage Q&A: What Are Current FHA Rates?

What are FHA mortgage rates? They’re the rates associated with an FHA mortgage. FHA mortgage rates will vary based on a number of factors. There are fixed rates and adjustable rates, down payments, credit scores of all...

Find the Best Banks in Charlotte, N.C. | First Bank

The best banks in Charlotte, NC, provide you with convenient ATMs and many helpful banking options. Whether you live in or around the Queen City, you always have access to First Bank.* We provide the convenience and...

Current 30 Year Mortgage Rates – South Carolina

If you’re looking for current mortgage rates in SC, it’s a great time to buy! In a recent survey conducted by GoBankingRates, the state ranked 27th in the nation for the lowest average home mortgage. The study combined...