Unsecured loan

[+ purplekow]

Today I received a solicitation from a bank guaranteeing me an unsecured $100,000 signature loan. This came from a bank in Washington DC. I tossed it as I thought it was either a scam and even if it wasn't, I had no need for the money. After all the bank issues and defaults going on, are banks still giving out unsecured loans?

 

I may have kept the envelop at the office and I will check into the legitimacy of the bank, but have others received offers such as this? I did not read all the way through but now I wonder if it is something like the Nigerian minister scam. Thoughts.

[Guest greatness]

well

 

An unsecured signature loan just requires your signature and no collateral. If you look at the interest rates of a signature loan, you would notice that they are relatively higher than other loans. If one has a bad credit then the interest rate would be very high.

 

Yes the economy is bad. However, there is always a demand for this kind of loan. It is mainly targeted to people who are temporarily out of work but will be able to find a job and pay back their loans later. There are also people who want to take some classes so they can get promotions and etc. Now one can apply for this kind of loan but it doesn't mean it will get approved. You are also giving them a permission to look into your personal information that they don't have access to otherwise (Yeah right! just on their paper work they don't have an access to).

 

Let's say one loses a job and have to pay car payments or medical bills. This loan is a good option for them. Once one finds a job or get back on track, one can pay it back. Since there is no collateral, the bank can justify the high interest. Thus, a bank can actually make a profit out it. Yes it is a high risk investment but if a bank can make 20% -30% profit or higher then it is a good deal for them. Another advantage for banks is that they can calculate a minimum risk loan amount and offer to a customer rather than a customer asking a certain amount for a short period. They can flexibly divide up allocated amount for this investment such as 35,000 - 100,00 dollars rather than lending a huge amount to a company for a long term. They are other advantages for this kind of loan to bankers. Anyways, if you don't need it that means you are ok financially or don't need to take classes to get that coveted promotion. I hope the economy gets better.

 

** Please remember that interest rates are high for an unsecured signature loan. It is another way for you to get into a huge debt if you can't pay it back. I would look for other loans if you can.

 

 

Today I received a solicitation from a bank guaranteeing me an unsecured $100,000 signature loan. This came from a bank in Washington DC. I tossed it as I thought it was either a scam and even if it wasn't, I had no need for the money. After all the bank issues and defaults going on, are banks still giving out unsecured loans?

 

I may have kept the envelop at the office and I will check into the legitimacy of the bank, but have others received offers such as this? I did not read all the way through but now I wonder if it is something like the Nigerian minister scam. Thoughts.