Financial glossary
Unsecured Loan
In plain English
A loan not backed by pledged collateral, priced mainly from creditworthiness, income, debt, and the lender’s underwriting rules.
Unsecured loan
An unsecured loan is not backed by a specific pledged asset such as a house or car. Approval and pricing rely primarily on credit history, income, existing debt, requested amount, term, and the lender’s rules.
Personal loans used for debt consolidation are often unsecured. They may provide a fixed payment and payoff date, but can include an origination fee and a higher APR for borrowers with weaker credit. Failure to pay can still damage credit and lead to collection or legal action even though the loan has no pledged collateral.
Use the debt consolidation calculator to compare complete finance cost and the personal loan calculator to inspect payment and proceeds.
Related calculators
- Debt Consolidation CalculatorCompare current debt with a consolidation loan, including APR, loan term, financed origination fee, monthly payment, and complete finance cost.
- Personal Loan CalculatorCalculate your personal loan payment, total interest, and the cash you actually receive after origination fees. Compare terms instantly.