Homeowner Loans: Throw Away your Financial Woes

By: Aisha Cristal

If you are a homeowner, you can pledge your home and get a big loan amount in return. This is the easiest way to avail a loan. Even lenders would not ask you too many questions just because they are getting a security for their money. They know that they have a support in the form of your home. But, if you are apprehensive of rising number of repossessions, there is another way out also.

A homeowner can take unsecured loan without requiring to pledge his home. Unsecured loan for homeowner comes with a little higher rate of interest when compared to secured homeowner loans. This happens due to the higher risk that lenders have to assume without the security in place. You should make sure that your credit score is high enough to get you a loan at competitive rate. A better credit record gets you a better interest rate.

Credit rating agencies like Experian and Equifax can be approached if you are not aware of your credit score. These agencies charge a little fee for providing you with a credit score. In fact, these agencies record every detail in your credit file and keep it updated for financial purposes. Lenders confirm your credit record from these agencies before sanctioning you any type of loan.

If you have a credit score of above 600, it is considered safe. Unsecured homeowner loans can bring you a loan of up to ?25,000. Of course, your credit score would be a critical factor in getting that much amount. The repayment term usually varies between one to ten years. It becomes difficult to get an unsecured loan for homeowners in case of bad credit history. Even if you get it, the interest rate would be very high. So, maintaining a good credit score should be a priority for every borrower.

Home Loans
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Home Loans