Unsecured Loans Tips
Read these 3 Unsecured Loans Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Personal Loans tips and hundreds of other topics.
Unsecured loans-No Collateral but stricter underwriting
Unsecured loans are loans with no collateral. Although
banks don't widely advertise the fact, they all make
them.
Unless you happen to be related to the bank president,
to obtain an unsecured loan, they normally require
that you have an excellent credit history and balance
sheet. It also helps to have a proven savings history
with the bank as well.
Right of Offset
Right of Offset is a term that applies to a lenders
legal right to withdraw funds from your deposit
accounts to offset you loan balances if you should
fall behind on your payments.
This right is given to the lender in a seperate
box on the contract that if checked states that
you give your lender the right to withdraw funds
from your deposit account to apply toward your loan
balance if you should fall behind. This applies even
if you have an unsecured loan.
This right to offset applies only to a lender that
you have a deposit account as well as a loan account
with.
PayDay Loans
For many people having trouble paying their bills, payday loan companies have made life a lot easier. By getting a payday loan before they get their paycheck at work, they can cover their bills with no problems.
What many people don't take into account is the high interest rate on payday loans. Being in a hurry to get this easy money, they don't bother to read the fine print. The payday loan business is so profitable that even the big banks are considering getting in.
Consumers should be particularly concerned with online payday loan sites that have sprung up in recent years. These Internet sites may demand as much as 50 percent interest, and will automatically deduct the amount owed from the consumer's bank account when due. If there is not enough money in the account, the borrower will be hit with additional charges.
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