Secured versus unsecured personal loans
Personal loans are a type of installment loan that you can take out and use for almost anything. RISE’s customers often come to us and take out a personal loan when:
- Their vehicle breaks
- Their home needs repairs
- They need to visit a doctor
- An emergency strikes
When you’re searching for a personal loan, you may be able to choose between secured and unsecured loans. Secured loans sometimes have lower rates, but borrowers will need to offer the lender a valuable possession as collateral.
For example, with an auto title loan, your vehicle is the collateral and the lender could take your vehicle if you don’t repay the loan. A mortgage is a secured loan which uses a home as collateral. Even payday loans are secured by a check.
Unsecured loans don’t require collateral. The lender offers you the money based on your creditworthiness and your promise to repay the debt.
RISE’s unsecured personal loans
RISE is one of many online lenders that offers unsecured personal loans. But several features distinguish RISE from the others:
- Few fees: You’ll never have to pay RISE an application or prepayment fee.
- Five-day return period: Take out a loan and then discover you don’t need the money? You can return a RISE loan within five business days without paying any interest or fees.
- Flexible terms: Borrowers could be able to choose bi-weekly or monthly payments.
- Credit reporting: RISE reports borrowers’ payments to a national credit bureau and making on-time payments could help you build a good credit history.
Your loan options and terms can vary depending on where you live and your creditworthiness, but you may be able to:
- Borrow up to $5,000 without putting up any collateral.
- Take from 5 to 36 months to repay your loan if you want low monthly payments (or pay the loan off early to save money). Please check Rates and Terms for your individual states’ rates and terms.
When should you consider an unsecured loan?
Unsecured loans can serve many purposes. Borrowers with excellent credit may qualify for low-rate unsecured loans that they can use to pay down higher-rate debts or finance large purchases.
Those with mixed credit histories may have a harder time qualifying for an unsecured loan. Secured loans can sometimes be easier to qualify for, but you risk losing your property if you miss payments.
RISE aims to offer low- to mid-credit borrowers another option with its online unsecured personal loans. Because a RISE loan may have higher rates than some other financial products, it might not be a good fit for non-essential purchases. However, when you’re faced with an emergency or are struggling to pay off higher-rate debt, consider an unsecured loan from RISE.