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NO COLLATERAL LOANS

In an emergency situation, providing collateral to secure a loan may prove to be a challenge. Maybe you do not have an asset that you can use at the moment, or you do not have the proper documents required to prove you are the owner of the asset.

At such times no collateral loans can be really helpful. Since no collateral or guarantor is required to secure a no collateral personal loan, your credit record and income status usually determine your eligibility. At Nation 21, we link you up with lenders that allow you to borrow this type of loan.

Applying does NOT affect

your FICO® credit score!


The Risk of Secured Loans with Collateral

To reduce the risk of the borrower defaulting the loan, traditional lenders usually require you to secure your loan. You can either secure the loan with an asset or a guarantor. The asset can be anything, including jewelry, your car, electronics, or even furniture. The lender benefits in that there is a lower risk of default and thus the borrower gets lower rates.

This may sound like the perfect lending system, but it is not, especially in an emergency. In most instances, the lender will only allow you to borrow just a small fraction of the value of the collateral. Therefore, you run the risk of losing a valuable asset for a loan that maybe didn’t really sort out the issue you wanted to sort.


Know About Unsecured No Collateral Loans

Also known as unsecured loans, no collateral loans allow you to take a loan without presenting an asset or guarantor to secure your loan. You will find this option quite helpful if you are in an emergency and do not have an asset or a guarantor to secure the loan. Through the Nation 21 platform, you can access a number of lenders that can lend you these no collateral personal loans through an all-online process.

To apply for a no collateral loan, you need to prove that you are capable of repaying the loan. If you can prove that you have a steady source of income, your chances of getting your loan request approved will be much higher.

The risk of default is quite high in no collateral personal loans. As such, the lenders need you to prove that you not only have the ability but also the willingness to repay the loan. As such, if you have a good credit record, you are more likely to get your loan request approved and at lower rates.


Why you should consider no collateral personal loans

At first glance, the rates charged in no collateral loans may appear quite high. However, in times of emergency, they are the most appropriate types of loans. At Nation 21, for instance, many of our lenders can process your application in a matter of minutes and deliver the cash within 24 hours.

Applying does NOT affect

your FICO® credit score!

With secured loans, the application process takes much longer because they have to determine the value of the asset you are presenting as collateral. In this regard, the unsecured loans offer a lot more convenience and thus worth the higher rates.

The amount of money you can borrow is also not limited by the value of your collateral. For secured loans, the amount you get is usually less than 80% of your collateral value. This may not even cover your need for the loan.

If you default a secured loan, you risk losing your valuable asset even if you had paid a considerable portion. If you had used a guarantor to secure it, you risk ruining their credit score in case you are unable to pay. This could even strain your relationship with him or her.


Tips to get the best deal

When applying for no collateral loans try the following ideas to get the best loan deal:

  • Sort out your previous credits. This will improve your credit history and could get you lower rates.
  • Negotiate an installment repayment schedule
  • Research about the lender to understand what other things you can do to get lower rates

Eligibility

Like other loans offered at Nation 21, the terms and conditions of the loan differ from one lender to another. However, there are some general requirements that applicants must meet.

  • Must be over 18 years of age
  • Must have a valid US identification document
  • Must be a US citizen at the time of application
  • Must be residing in the United States when applying
  • Some lenders do not lend to serving military officers

Conclusion

No Collateral loans can really help you out if you are in an emergency and need a huge amount of money urgently. Since you do not need collateral or a guarantor, you can apply online and the process is also much faster. You also do not risk losing your valuable items or damaging the credit record of your relatives or friends that guarantee your loan.

Applying does NOT affect

your FICO® credit score!


Do you have any further questions?