Sentences with phrase «risk than a secured loan»

For example, an unsecured credit card typically carries more risk than a secured loan, so regulations tolerate much higher interest rates on unsecured credit cards than allowed even on subprime mortgages, which are backed by collateral.

Not exact matches

The contraction in this margin partly reflected the growing popularity of loans secured by residential property, which have a lower indicator rate than other loans and in most cases no additional risk margin.

The lower risk associated with a secured loan often results in a lower interest rate than an unsecured personal loan would carry.

Because collateral reduces the lender's exposure to the risk of default, secured personal loans have lower interest rates than their unsecured counterparts.

Though such legal processes would take a longer period of time than the simple action of repossession for which secured loan lenders are entitled, someone taking an unsecured loan is still risking his assets if he fails to repay his debt.

The lack of collateral turns this kind of loans into a higher risk financial transaction for the lender and thus, the interest rate charged will be slightly higher than that of a secured personal loan.

This is due to the fact that unsecured loans have no collateral guaranteeing the loan repayment and thus, the risk for the lender is higher than with secured loans.

The risk involved for the lender is a lot higher than with secured loans and that is the main reason why unsecured loans carry higher interest rates.

It is usually higher than that charged on secured loans, for the simple reason that the lender is accepting a greater risk of losing on the investment.

This is because lenders put themselves in a little more risk than they would by having your assets as a collateral in a secured loan.

Of course, loans that are unsecured carry with them a greater risk than their secured alternative, but they are generally the only form of financing on offer since, for the borrower, the previous debt would probably have been repaid had they anything to use as collateral in the first place.

Unsecured Business loans carry higher interest rates than secured business loans because there is a higher risk for the lender.

This is due to the fact that even that home equity loans are secured loans, there is a greater risk of defaulting on a home equity loan than on a home loan.

To understand the reasons why most unsecured loans are harder to qualify for than secured loans, it is important that you comprehend the implications of collateral on loans and how they affect the risk variable that defines most loan terms and requirements for all kind of loans.

Because there is great risk to the lender, unsecured bad credit personal loans typically have higher interest rates than secured loans.

Generally, the interest rate on an unsecured loan will be higher than a secured loan because there is greater risk involved (no collateral associated with the loan).

Personal loans are unsecured, meaning they are a higher risk than loans secured by collateral.

The reason is they take a larger risk when they give a loan without security, and to compensate the risks the interest rates on the unsecured loans will be higher than on secured loans.

Because lenders bear greater risk with an unsecured loan than that of a secured loan, they would put more stringent requirements on you and charge a higher rate of interest.

Interest rates are usually higher than for secured loans, since the credit provider is taking a bigger risk.

The interest rate is usually higher than for a secured loan as there is a higher risk to the lender of not getting their money back.

As a result, the interest rate on an unsecured loan such as a personal loan is higher than the interest rate on a secured loan such as a mortgage because the lender is assuming more risk.

The lower risk associated with a secured loan often results in a lower interest rate than an unsecured personal loan would carry.

The personal loan would be riskier than parking the money in an FDIC insured bank account, but the risk can be mitigated if the loan is secured by the home like a regular mortgage.

Unsecured loan lenders are able to stay in business by covering their risk of unsecured loans with higher interest rates than they offer on secured loans.

We provide a borrower with the ability to borrow on underwriting criteria not available through institutional lenders; hence our investors are able to receive much higher yields than one would expect given the low level of risk associated with real estate secured loans.

Like hard - money lenders, crowdfunding platforms guard against risk by securing the loans to the property and lending for less than its full value.