Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jan 13, 2012

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An unsecured personal loan is a perfect tool borrowers can use when trying to obtain quick money. This type of financing is commonly used by those who either do not have collateral or don’t feel comfortable putting some of their valuable assets up as collateral for a secured loan. As a result, unsecured personal loans are low risk to the borrower, and can be used to counter unexpected bills or purchases.

[loansform] The nice thing about unsecured personal loans is that they come with fixed rates and fixed terms, granting borrowers the luxury of knowing exactly how much they will have to pay and how long they can expect bills to come before agreeing to the lender’s offer. This type of loan can also be used to consolidate existing loans, thus serving as a tool to lift borrowers out of debt traps.

But since this type of loan is unsecured, they pose a much larger risk to lenders than they do borrowers. As a result, lenders often respond to that risk by imposing higher interest rates. Higher rates lead to larger monthly payments. If this presents a problem to borrowers, they may want to consider securing their personal loan with some sort of collateral—which would likely bring both the interest and monthly payment down.

Due to those high rates, obtaining quotes from multiple lending sources is a crucial step before agreeing to this kind of financing. The online form above aids borrowers in this quote gathering process, and awards them with feedback from several lenders at once.