Unsecured Loans for Personal or Business Use

Unsecured loans are also referred to as signature loans. They are loans that do not require any kind of collateral or security. You don't have to put your car, house or boat up as collateral to get an unsecured loan. All you need is good credit, and sometimes not even that. Of course, it is much more difficult to get an unsecured loan if you have bad credit because the lender has no recourse if you do not pay.  There are car loans for people with bad credit, but an unsecured loan without good credit is almost unheard of.

You can get unsecured personal loans for any purpose.  Most of the time these loans are for small amounts and the money is used for minor repairs, purchase of items such as furniture or computers, or to help pay for a vacation.  You are not limited to these uses for the money you borrow, of course.  You are usually free to do what you wish with the loan proceeds.  However, the lender may ask you what you plan to use it for.

It is possible to borrow up to $25,000 through an unsecured personal loan from some lenders if your credit is good enough and your income high enough to qualify you for the loan.  This is more than most people need to borrow, though, and not everyone can qualify to borrow this much money.  Depending on your income and credit, the lender will determine how much they are willing to lend.

If you plan to use the money for a business, the lender may have different requirements.  But if you have good credit, getting money to start or run a business is certainly a possibility.  Unsecured business loans can be used to pay for equipment, start-up costs or any other expenses related to running your business.  If your credit and income qualify you for a business loan, it is possible to borrow up to $500,000 from some lenders without any collateral at all.

Another option for business owners is a business line of credit.  This is an unsecured business loan that can be accessed as needed to provide working capital for the business.   One of the main benefits to having a line of credit is that you can access the money when you need it without having to reapply every time.  You also pay interest on only the money you have used, not the entire credit amount.

Unsecured credit card offers are not the same as unsecured personal loans, but they are similar.  A credit card is more like a line of credit than a loan.  It can be very convenient to use an unsecured credit card to borrow money.  However, the fees and interest rates are often higher than you would pay if you got an unsecured loan instead.