Trying to navigate your way through the world of online lenders can often be downright terrifying. It seems every lender offering unsecured personal loans promises the world. Then when you do a little research, you find out about their eye-watering interest rates. When it comes to getting the best deal and avoiding dodgy lenders, knowledge is power.
So, we at Safrock want to use our lender-finder expertise to help everyday Aussies. Consider us your sherpas, guiding you around the avalanches and pitfalls of online lending.
If you’re looking for online finance, and still aren’t sure of the difference between a secured and unsecured loan, then you’ve come to the right place. In this guide, we’ll answer your questions in plain English. From ‘what is an unsecured loan’ to ‘secured vs unsecured loan’, we’ll cut through the financial jargon and let you know exactly what you’d be signing up for.
Who Are We?
Well, we figured before we get into any of that, we’d better introduce ourselves. After all, how are you meant to trust people you’ve never heard of before?
Anyway, we are Safrock. We are a lender-finder service, based up in inner-city Brisbane. What is a lender-finder you ask? Well, it’s really what it says on the tin – we find our customers legitimate, reputable lenders who want to help.
After being in the game for so long we know a thing or two about finding our customers legitimate lenders. No more hours spent online, no more worrying about loan sharks or fraudulent businesses.
What’s more, as a lender-finder, we don’t actually provide loans. We only provide a service to help our customers out. So, you can rest assured you’re in safe hands.
What Is An Unsecured Loan?
If you’ve found yourself on this page, chances are you’ve been searching online for stuff like, ‘difference between secured and unsecured loan’, ‘what is an unsecured loan’. If that’s the case, you’ve come to the right place. We can help answer any unsecured loan questions you may have. And hey, we may even be able to find you a lender offering an unsecured personal loan.
So, an unsecured loan is a loan that does not require an asset to be attached to it as security. In layman’s terms, this means you are able to get a loan without having to put up something like your car, boat, caravan or motorbike against the loan.
Why do some lenders ask for security? Well, if a customer can’t pay back their loan (known as defaulting), then the lender is able to repossess that customer’s asset to recoup some of their losses. Security on a loan is just that – financial security in case people default on their loan.
Secured Loan Vs Unsecured Loan
So what does the difference between secured and unsecured loan mean for you? Well, if you’ve attached security against the loan, the lender is more likely to lend you a larger amount.
Depending on the lender, however, you may still be able to get a bigger loan amount as an unsecured loan. Lenders will assess unsecured loan applications based on affordability and suitability. In other words, if lenders can see that the repayments will fit comfortably within your budget, they are likely to approve you for a loan. The likelihood for approval on your loan application will be increased if there is an asset attached as security.
What Is A Personal Loan?
A personal loan is simply a loan for personal expenses. In other words, you could use it as an unsecured business loan, or even an unsecured business loan for a startup. You could even use the money on dental expenses, a holiday, or to consolidate other debts. It’s really up to you.
As Safrock we can find lenders who may be offering unsecured loans from between $2,500 to a whopping $25,000. In the lending world, these type of loans are known as MACCs and LACCs. They stand for Medium Amount Credit Contract and Large Amount Credit Contract, respectively.
MACCs are loans valued between $2,001 and $4,600 and are repaid over a term of between 13 to 24-months. LACCs are loans valued over $5,000 and have repayment terms between 13 and 36-months.
Because these loan amounts are on the bigger side, we think they would be a great unsecured business loan or as an unsecured business loan for a startup. Keep in mind though, that lenders will likely see these as secured loans. Your chances of being approved will be higher if you attach an asset as security.
Can You Find Me Lenders Offering Quick Cash?
While we are only the lender-finder, we can’t guarantee lender approval times. We can, however, promise that our online application process is super simple. If you fill out our application process within normal business hours, the process is even quicker. You could maybe even have that unsecured loan in your account by the next business day. To make our application even more streamlined, make sure you have these things handy:
- 100-points of identification;
- Contact information;
- Internet banking credentials;
- myGov account details (if applicable);
- Employment information (if applicable);
- The registration, make, model, transmission, fuel type and other general information about the vehicle you’re attaching as an asset.
What Can I Borrow Money For?
If we are able to find you a lender offering the unsecured loan you’re looking for, you can virtually spend it however you like. So, don’t worry about whether a secured vs unsecured loan will affect how you’re able to spend it.
Can You Find Me A Lender Offering A Bad Credit Personal Loan?
Are your hopes of finding an unsecured personal loan bad credit dwindling? Well, we have some good news.
Safrock and the lenders we work with are trying to do things a little differently. By this, we mean we will see you as a person, not just a credit score. We understand that a credit score from years ago doesn’t reflect who you are today. If your current relationship with money has improved, Safrock and our network of lenders are willing to give you a fair go.
How are we able to determine this? Well, we ask for your banking credentials in your application. This is so we can access a read-only record of your banking history. From this, we are able to let potential lenders know you deserve another shot.
We understand this may make some people feel a bit uneasy. You can be certain that your details are encrypted as you enter them. Once your transaction history has been attained, your details are permanently deleted.
Well, we find lenders that may be able to offer you an unsecured loan of between $2,500 to $25,000.
The final decision on what to lend you, however, rests with the lender themselves. Also, keep in mind that they may not approve your loan if there isn’t security attached.
What Are The Interest Rates?
We know that the people of Australia keep searching for ‘low interest personal loan unsecured’. And who could blame them? The lower the interest rate the better.
At Safrock, we want you to find this ‘low interest personal loan unsecured’ as much as you do. That’s why we’ll present you with a selection of unsecured loan options from different lenders. We realise that nobody understands your situation better than, well, you.
It is important to remember that unsecured personal loan rates will vary from lender to lender. So, we recommend weighing up your options before committing to a particular lender.
Aside from the unsecured personal loan rates associated with your loan, there may be additional fees and charges. These can often look like late fees or processing fees. These costs and fees will be laid out in your contract. If you aren’t 100% crystal clear on the fees and charges attached to your loan, get in contact with your lender. We can’t stress enough how important it is to be up to speed with all the costs on your loan. Before committing to any loan, be confident you know exactly what you’re signing up for.
Do You Work With Lenders Offering Low Income Loans?
Again, lenders will assess an unsecured loan application by its affordability and suitability. In other words, your income levels may not affect your chances of being approved for an unsecured personal loan. As long as it is clear your repayments will fit comfortably into your budget, you will be considered for approval.
Lenders are even likely to consider regular Centrelink payments as a form of income. So, even if you are receiving government benefits, you could still be approved. They just need to see that your repayments will fit comfortably within your regular benefits.
If the words ‘short term lender’ conjures up images of flickering neon signs in an alleyway – we don’t blame you. This really is an industry where lenders may feel they can take advantage of you.
Knowing exactly what you’re signing up for is the key to avoiding being taken advantage of. Understanding terms like ‘secured vs unsecured loans’ will save you from months of stress later down the line.
If you do come across lenders who offer you the world – be very wary! If it sounds too good to be true, nine times out of ten it is. Don’t sign any loan contract until you completely understand the ins and outs of it. Be aware of the fees and charges associated with your loan. If things aren’t crystal clear, get in contact with your lender and ask.
If you are worried you may not be able to afford one of your repayments, give your lender a call. More often than not, you will be able to reach an alternative agreement. Just keeping quiet and wishing the problem away will only make it worse. Before you know it you could have dishonour fees piling up, while the lender could start contacting your employers and family.
Lastly, you can rest assured that with Safrock, we are only going to present you with options from legitimate lenders. All the lenders we work with comply with responsible lending practices. If you use Safrock, you can be sure you won’t be taken for a ride.
Get In Contact With Safrock
We always want to hear back from our customers. So, whether you’ve had a great experience, or there’s something we could improve on, get in contact. We don’t want to just hear about what we did well (we already know we are great). If you have any feedback that could help us improve our business model, we’d love to hear it.
To get in contact with us, head on over to the contact us page. Once you’ve sent an e-mail, someone from our team of lender-finder experts should be in contact with you ASAP.
If you wish to make a complaint about Safrock, or one of the lenders we work with, you are able to take it externally. You can reach The Australian Financial Complaints Authority on 1800 931 678, or online through www.afca.org.au.
If you want to get started using Safrock’s service, just scroll on up to the loan calculator at the top of the page. What are you waiting for? Apply today.