What Are High Risk Unsecured Loans?
High risk unsecured loans are loans that require no collateral for the lender but require the borrower to pay higher interest rates on the loan to compensate for this lack of collateral. These loans are usually taken up by people who have poor credit ratings and need fast money to pay off outstanding debts. The benefits of high risk unsecured loans for the borrower are that they are easy to obtain and there is no risk of losing a prized possession held by the lender as collateral. Unfortunately, the high interest rates can push the borrower into even more serious debt should he or she fail to make timely payments.
