Unsecured Loan

What is an unsecured loan?

Unsecured Loan Definition: An unsecured loan is an amount of money you borrow without the need for collateral. A lender will approve a loan based on a customer’s creditworthiness, established on a credit rating and history. Examples of unsecured loans include some lines of credit, credit cards, personal loans, and student loans.

In contrast, a secured loan requires an asset, such as property, to be applied as collateral if a borrower defaults on loan payments. Since unsecured loans are riskier to the lender, a much higher credit score is usually required to qualify for a loan. In some cases, higher interest rates may apply for an unsecured loan.

Aug 13 - Comparewise Personal Loan Banner

Other Personal Loan Terms:

Personal Loan Help Centre:

How to Improve Your Credit Score
How to Buy Stock in Canada
What are Child Tax Loans?
How To Invest In Canada
PFM Verify
Refresh Financial
Survey Junkie
KOHO Prepaid Mastercard
Tangerine Money-Back Credit Card
National Bank ECHO Cashback Mastercard
Brim World Elite Mastercard


Didn’t find the information you were looking for?

Send us your questions and we will get back to you.

Car loan?
Personal Loan?

Top deals await you just a short
application away!