When in need of a loan, you’ll start exploring your specific options, aiming at discovering the best one and thus applying for the solution that will be completely in your favor. If you’ve already done some searching, you have undoubtedly stumbled upon the option known as lån uten sikkerhet, at which point you’ve begun wondering what it is and whether it is right for you. You can’t know whether it’s right for you, though, before first figuring out what it actually entails, whether you’re eligible for getting it, as well as how to actually get it should you decide to do so. Well, we’re now going to answer all of those questions for you.
What Is A Lån Uten Sikkerhet?
Unsecured loans, also known as signature loans, are those that don’t require collateral. They’re called “signature loans” because your signature is practically all that the lender needs so as to transfer you the money, but that doesn’t mean that no other borrowing requirements will be necessary. You’ll still need to meet the lender’s requirements, but the bottom line is that the lån uten sikkerhet doesn’t require any kind of collateral.
What does it mean when a loan doesn’t require collateral, though? Let’s back up a little bit and get you familiar with the concept of secured loans first, so as to help you understand all of this clearly. The secured option is when you, for example, take out a loan to get a car and then automatically offer that car to the lender as security that you’ll repay the amount you’ve borrowed. The agreement is made accordingly, and the lender will have the right to seize your car should you default on your payments.
As opposed to this option, there’s the loan uten sikkerhet, i.e. the unsecured one, that doesn’t require collateral, and I suppose that this notion is much clearer to you right now. Basically, if you decide to go for this solution, the lender won’t ask for any of your assets to be provided as security, further meaning that they won’t have the right to seize them if you default. If you default, after for example losing your job, the lender will have no collateral through which to recover the outstanding debt. They may decide to bear this loss or pursue the repayment through legal proceedings, but they can’t seize your assets after you stop paying.
Personal unsecured loans also don’t come with any kinds of restrictions regarding how you will use the money you borrow. If you’re dealing with a financial emergency, you can rely on this option to get you out of trouble, or you can use it to pay for your wedding, renovate your home, consolidate your debt or do anything else you see fit. In short, these operate the same way as any traditional personal loans, except that you won’t have to provide collateral and risk your assets that way. Another benefit, apart from the lack of collateral, of this option lies in the fact that you have fast access to the money you need, because the approval period and the waiting period aren’t that long as with the traditional option.
Can You Get It?
The very fact that no assets will be offered as collateral means that the lenders need to work harder on protecting themselves and not ending up in a situation of needing to bear the financial losses should their borrowers default. This means that not everyone can get a lån uten sikkerhet. First off, good to excellent credit score is required if you want to be eligible for this loan, meaning that you should work on that score prior to applying if you find that it’s lacking. Catch up on your past due accounts, pay down all the revolving credit balances, increase your credit limit and check the credit reports for any errors so as to improve the score and become eligible for this loan type.
Due to the higher risks that they are assuming, lenders will also usually charge higher interest rates on this option. So, if you’re eligible for the loan due to your great credit score, you’ll definitely be able to get it, but the question will then become whether you should do it. Sometimes, people have no other choice but to do this, given that they are in a financial struggle that they want to get out of quickly. Other times, though, those borrowers with excellent credit scores could even get offered rather competitive interest rates, i.e. lower than they expected to get on unsecured loans. Thus, you can go for this option either because you need it, or because you want to take advantage of those competitive rates.
How To Get It?
It’s now clear what a lån uten sikkerhet is, and you’re also probably no longer confused on whether you can or whether you should get it. Since all of those questions have been answered for you, what’s left to do now is help you figure out how to actually get this particular option. Given that they’re known as “signature loans”, you surely expect the application process to be easy, and your expectations will be met. It is something else that can be difficult, though, something that comes before the applying procedure.
That something else consists of you finding the perfect lenders. Not all of the financial institutions you’ll come across will offer the unsecured option in the first place, but even if you find a lot of those that do, you shouldn’t think that your work is done and randomly pick out one of them. Instead, you’ll have to spend some time checking their legitimacy first, and then their experience level and their reputation, aiming at determining which of those lenders are there to help you get the perfect solution and not to trick you into agreeing on terms that won’t be good for you. The Internet, together with previous clients if you can find some to talk to, will be of great help in finding reliable lenders, so make sure to use those sources.
Once you’ve exhausted all the sources and found all the info regarding reliability you need, you’ll have to get a bit more specific and start checking out the interest rates and the other borrowing terms that particular lenders will offer. Doing comparisons on those will help you get a loan that won’t cost you a fortune and that will instead be completely reasonably priced. When you’re sure you’ve found the best option, simply fill out the application and wait for approval.