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

Small Business Loans – Albemarle, NC

If you are thinking about opening a small business in Albemarle, North Carolina, First Bank can provide you with a small business loan to get you started. Albemarle offers lower…

Best Small Business Bank – Florence, SC

Florence, South Carolina boasts one of the best business climates in the southeast. The city of Florence is bustling with shops, restaurants, festivals, farmers markets, and much more. If you’re…

Best Savings Account For Kids

Finding the best savings account for kids doesn’t have to be complicated. Savings accounts can foster good saving and spending habits, and your child will probably enjoy watching his or…

Best Business Checking Account – Lillington, NC

If you are a business owner, you know how important proper finance management is to running a successful business. Separating your business bank account from your personal bank account can…

Small Business Loans Made Easy – First Bank of North Carolina

North Carolina is a smart choice for any entrepreneur looking to start a business. The state encourages its residents and visitors to shop local. Organizations like Shop Local Raleigh and…

Installment Loans in South Carolina

  If you're looking for personal loan options in South Carolina, visit your local First Bank today. We offer customized loans built to meet your specific, financial needs. From credit cards…

Best Personal Loans in Albemarle, NC

Are you in the market for an engagement ring and looking for a place to get the best personal loan? If so, you may need to take out a personal loan…

Construction Loans NC

The thought of building a new home can be daunting. All that planning. All that work. And all that money. At First Bank, we can’t design a floor plan or…

Small Personal Loans – Jacksonville, NC

Finding small personal loans in Jacksonville, NC, can be beneficial when you need a little extra money. Whether it's for a planned or unexpected expense, a personal loan can help you…

Small Business Loans in Wilmington, NC

Starting a business from the ground up can be difficult, but rewarding. Whether you are looking to build a new building for your business or move into an existing space,…