If you have an urgent need for money, a consumer loan with no guarantee of security can be a good solution. This is money that comes into your account quickly and can be used for whatever you want – without any unpleasant questions asked. At the same time, you should choose your lender carefully, as there are large differences in interest rates, fees and how good the loan terms are. We help you find the country’s cheapest and best consumer loan for 2019 here.
The main advantage of a cheap consumer loan is that you do not need to provide collateral to get your loan application granted. Usually, you also get a response to the loan application the same or the next day. Most of the loan providers of cheap consumer loans require only that you are 18 or 20 years of age, that you live in the country and can document a certain minimum income.
What is a Consumer Loan?
Consumer Loans is a loan that you can get either from your bank or from a lender online and is usually used for purchasing consumer goods, usually for lesser amounts than you would normally ask your bank to finance for you.
What are the criteria for getting a consumer loan?
Consumer loans are unsecured loans, and it is the lender who takes a chance when they lend you money. Although your credit rating is good as gold, there is still a risk to the lender or bank. Therefore, some minimum requirements and conditions for obtaining consumer loans have been set up.
These requirements are often the same, but can also vary from loan provider to loan provider. Here are some of the absolute minimum requirements for applying for a consumer loan at all, whether in the bank or online.
Minimum consumer loan requirements:
- No payment notes or active collection cases
- Must be 18, 20, or 23 years (this varies between lenders)
- Must have a fixed monthly minimum income (size varies)
- Creditworthy (pass credit check)
- Must have a permanent address in the country
These three terms you will find with most lenders. You may also want to meet other requirements. Some lenders require e.g. that you must be a Norwegian citizen before your application will be considered.
What is meant by consumer loans without collateral?
When browsing through various websites that offer unsecured consumer loans, don’t worry. This, because it is not your security that is being talked about, but the lender’s security. The fact that the loan company does not have collateral means that there is not much they can do if you do not repay the loan!
What makes consumer loans so expensive is the lack of security. This means that the lender poses a greater risk by lending you the money – and that is the risk you pay the lender extra high interest rates for.
Unlike a typical car loan or bank loan where the bank usually pledges the car, online lenders have no assets that they can pledge when it comes to consumer loans.
When applying for a consumer loan, the lender does not require you to cough up some form of collateral. So you do not have to pledge assets or property to borrow money.
Interest on consumer loans
The rate of interest on a consumer loan is usually somewhere between 6% and 25%, depending on your financial situation, your credit score and any payment remarks you may have. A typical consumer loan is in the range of somewhere between 1000 and 500,000 dollars.
Find The Cheapest Consumer Loan Online – We Help You!
The volume of consumer loans offered online today is staggeringly large. Yes, so big that it is almost impossible to get a fairly good overview. That’s why it’s quickly done to end up with the unpleasant feeling that you might have found better loan terms elsewhere – if you only knew where to look, right?
That is why we have done the job of finding the cheapest consumer loan with the lowest interest rate for you! This means that you do not have to spend your own valuable time flipping each stone to find the best online mortgage loan offers for 2019. Below you will find a list of the most beneficial consumer loans available on the market today within the various The types of consumer loans with the best interest rates.
This will hopefully help you quickly get an overview of which consumer loan with the best interest rate is best for you and your own finances.