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

Important Information: We’re here to help, click here for important information on our coronavirus response.

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

Do You Need Help Financing Your Wedding? First Bank Can Help!

A wedding is a beautiful day filled with love and commitment. Many consider it the biggest day of their lives. It’s a day you’ll spend months planning for and the rest of your life remembering. It’s also...

High Interest Checking Accounts In Florence, SC

If you are looking for a high-interest checking account in Florence, South Carolina, look no further than your local First Bank. Our high-interest checking accounts provide you with a safe and convenient way to store your...

What is Personal Finance?

Are you ready to get a handle on your finances and prepare for your future? The first step is understanding personal finance. According to Investopedia, “Personal finance defines all financial decisions and...

5 Ways to Get the Lowest Mortgage Rates

If you are looking for some of the lowest mortgage rates in North Carolina or South Carolina, First Bank might be able to help. Choosing a mortgage option can be one of the most confusing aspects of the home purchasing...

Find Remodeling Loans in Asheville, NC

First Bank offers remodeling loans in Asheville, NC, for homes or businesses to get you started on turning your vision into a reality. Our Asheville loan officers will work with you to establish a loan and complete the...

Bank Owned Homes – Find Bank Owned Homes for Sale in Your Area

If you’re in the market for a great deal on a home, a bank-owned home could be just the thing for you! With First Bank, you can easily search through a list of our bank-owned properties for sale. Bank-owned...

High Yield Savings Account – Lillington, NC

When the unexpected happens, it can help to have a little extra money put away. If you aren’t prepared, unexpected medical bills, job loss, or repairs can put a dent into your bank account and cause financial stress....

Small Business Loan Requirements in Asheville, NC

Did you know that loan approval rates at small banks have increased in recent months? As you’re looking into small business loan requirements in Asheville, NC, consider a community bank like First Bank. Common...

Home Mortgage Calculator from First Bank

A home mortgage calculator can help you determine your monthly mortgage payments. This will help you financially prepare for that future purchase, whether you are a first-time homebuyer or seeking a vacation home. You can...

Mobile Merchant Services in Asheboro, NC

Asheboro, North Carolina, is located in the heart of the state, making it a great place to start and grow a business. Part of growing a successful business is offering your customers convenient ways to pay and managing...