How An Unsecured Loan Works
If you need to take care of an urgent expense but don’t want to pledge your home or car, consider an unsecured loan. Unlike a secured loan, this type of loan does not require collateral, and you can gain approval with three simple requirements.
All you’ll need is an ID, proof of income, and an active checking account in your name to get a payday loan from Tennessee Title Loans, Inc. Even better, the entire process can take as little as 30 minutes, and if approved, you’ll receive you’ll emergency money that same day or the following business day.
Keep reading to discover everything you need to know about unsecured loans – their types, how they work, and how you can apply for one.
How Can I Get An Unsecured Loan In Tennessee?
What Is An Unsecured Loan?
In a nutshell, an unsecured loan is a loan that does not require any form of collateral. Collateral, in its turn, is an item of value pledged to secure a loan.
Unsecured loans are sometimes called ‘good-faith loans’ based on the borrower’s signature and promise to repay the loan.
Such loans can become an option for those who do not possess a valuable asset (for example, do not own their car outright or don’t have a vehicle) or those who do not want to put their house or car at risk.
What Are The Types Of Unsecured Loans?
There are quite a few different types of unsecured loans:
- Credit cards allow the borrower to access a certain amount of money without offering up collateral.
- Student loans are also unsecured, no matter whether they’re private or government-backed.
- Perhaps, a personal loan is the most common type of unsecured loan. Even though some lenders offer secured options, most such loans do not require collateral. A payday loan is an example of a short-term unsecured personal loan.
How Does An Unsecured Loan Work?
The process for an unsecured loan is often less rigorous and faster than that for a secured loan, as you don’t have to spend time proving the value of your asset.
The sums that borrowers can qualify for depend on the unsecured loan type they are applying for. The same goes for the loan terms. Do remember that the amounts and terms vary from lender to lender, so make sure to research and choose a lender that meets your individual needs.
Once the loan is approved, you will receive the whole sum. The payments have to be made regularly (typically once a month). By the way, borrowers that went for a payday loan can generally pay off the loan with their next paycheck (hence the name).
Credit unions, banks, and online lenders offer unsecured loans. But as such loans are riskier for lenders, they often require the borrower to have a high credit score to qualify. This can indeed become a problem for those with no valuable assets and those with a less-than-perfect score.
Thankfully, some lenders, like Tennessee Title Loans Inc., welcome borrowers from all credit backgrounds! Whether you have good, bad, or no credit at all, you can apply for a payday loan today!
How To Apply For An Unsecured Loan
Applying for a payday loan has quite a few benefits – it can be repaid in the shortest timeframe, and you can get the money you need extremely fast. Furthermore, you will need only four items:
- Your driver’s license or state ID
- Your most recent pay stub
- A blank check from an active checking account in your name
With Tennessee Title Loans Inc., you can fill out the inquiry online. You must complete the short form, gather the necessary documents, and wait for the company representative to call you.
When you receive a call from our friendly loan representative, you will be invited to the nearest Tennessee location, where your documents will be verified.
If you get approved, you will receive the urgent cash the next work day or, in some cases, the same day. In Tennessee, you can qualify for $100-$400. The entire process can take as little as 30 minutes, ensuring you get access to your emergency funding as soon as possible.
Apply For An Unsecured Loan Today!
You already know about the reasons why a lot of borrowers would prefer to go for an unsecured loan. If you need to cover a relatively minor emergency expense, consider a payday loan, which can be repaid in only a few weeks.
Our Tennessee Title Loans, Inc. representatives know how important it is for you to receive the money fast. That’s why the whole process is swift and easy. To begin the payday loan process, submit an online inquiry now!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.