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Cheap Loan Unsecured - Find a Cheap Loan Unsecured - Which is the Best Cheap Loan Unsecured Deal?

Where Does One Go to Obtain a Cheap Loan Unsecured?

For a homeowner obtaining a loan is not usually difficult if one is willing to have it secured on the property. For the loan company the nub of the agreement is thus, if you default on repayment they have rights over the equity in your house. As such there is virtually no risk involved for the lender.

But for the customer who does not own property the situation is somewhat different. The lender has to take a gamble and the chances of default are considerably higher, both because the borrower is more mobile and is more likely to move away without leaving a forwarding address, and because even if he or she does not move away it can be difficult to recover funds from somebody who has no assets.

A few years ago lenders were desperate to give out cheap loans unsecured to almost anybody. Although applicants were invited to give their employment details they were seldom checked and even claimed residential status tended to be taken at its word. Stories abound of unemployed people being lent five figure sums via a cheap loan unsecured that they had little hope of ever repaying.

Unsurprisingly those days came to an abrupt end and it is now far more difficult for somebody who has no collateral to borrow money. To do so one is usually required to have a good credit history, a permanent job and a residential status that is demonstrable, long-term and secure.

Even so there remains a risk of default, and so the lender effectively takes out insurance against this risk by charging a higher rate of interest than would have been the case had the borrower been able to offer security. As a rule of thumb the less strict the criteria for qualification are, the higher the repayments will usually be. Even mainstream cheap loan unsecured lenders have been known to set an APR of up to 50% when granting loans to unsecured borrowers.

So when one speaks of obtaining a cheap loan unsecured one is speaking relatively. It is entirely reasonable that a lender would want to seek some protection against default, however it is equally understandable that the responsible borrower would not wish to be paying too much for the dishonesty or misfortune of others. It is therefore always a good idea to shop around for the best deal and the lowest APR available to unsecured lenders.

Using a good price comparison website could save one a small fortune by finding the successful unsecured loan with the lowest APR and the best repayment terms available. Compare cheap loan unsecured deals using the above companies and websites today.

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