A lot of people have taken out an unsecured loan at one time or another and I guess back in the old days where everything was prim and proper and you called people by their surnames, you were just happy to be given the money and signed the dotted line and out you went.
These days you have a choice.
In fact, there are so many choices out there and you shouldn't look at taking the first finance company you think of.
Finance companies and the major Banks have different criteria and different ways of charging interest rates and different costs, so you should do your homework beforehand.
If you have a bad credit rating then you will know that a major Bank is unlikely to want to give you an unsecured loan.
Finance companies will give you an opportunity to get one of their loans but, you need to ask the questions: what interest rate are you charging me and is there any additional rate added because of my bad credit rating.
So many people these days do not ask and it isn't until after you have the loan that you realize you may be worse off because of it.
Depending on what you are needing the money for and how urgent it is, you may have no choice but to take an unsecured loan with a higher rate of interest.
However, what you should be thinking about prior to discussing it with the lender, is how much you can afford.
Again, do your homework beforehand and work out your budget.
Find an amount you know would be a comfortable figure that you would like to pay and stick to that amount.
So when the lender comes through with the approval, sit down with them and work out a term and payment plan that suits you, not them.
Understand something here, if it wasn't for the customer where would the business be? That is why there are quite a large number of finance companies out there.
The finance company is there for you, not the other way around.
A lot of lenders don't disclose all the details correctly either.
Whether through lack of training or the lender just trying to get a sale and not worry about the customer, so be aware that you need to understand everything that goes on during the process.
Realise also, that you won't be looking like an idiot or some stupid person that knows nothing.
Of course, you are not going to know all the intricacies of an unsecured loan.
That is what the lender is for, to explain it all to you.
If you don't understand, ask the lender to repeat it.
Be aware of the structure of the unsecured loan.
Find out how the payment amount you need to make is made up.
Some companies charge you interest as well as the principal and this is the best plan to take.
Try to avoid a company that will charge you only interest for the first year or two or three.
Take control of your loan, know how much you can pay and pay it.
Do not be fooled into taking a loan and realizing the amount you have to pay is more than you can afford.
Find out about making extra sums on your loan and if any fees are involved in paying it off earlier.
If you are lucky enough to pay an unsecured loan off earlier than the original time, be strong when it comes to taking out another.
" Well, that was easy, I will do it again.
" Of course, the finance company may send you out letters enticing you to come back for more, again, be strong.
Go back to the reason why you had to go to a finance company that charged more in the first place.
Was it having a bad credit rating? What can you do to fix that? Start a savings plan and keep your records of this so that this may counteract the bad credit rating.