Press Releases > 05/31/2008 FirstAgain Reveals the Top 5...
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Christie Huff
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FirstAgain Reveals the Top 5 Myths Surrounding Unsecured Personal Loans
| WHAT: |
Myriad misconceptions and outdated thinking prevails when it comes to unsecured loans. FirstAgain, an online consumer lender focused on individuals with excellent credit, offers a clarifying view of the current state of the unsecured loan market by debunking top myths. |
| MYTH #1: |
Reputable Lenders Don't Offer Unsecured Loans |
| REALITY: |
Consumers shouldn't associate unsecured loans with disreputable lenders who take advantage of cash-poor borrowers by providing immediate access to funds but charging them unreasonable rates. The reality is that many traditional lenders, including Bank of America, Capital One, Chase, Citibank and Wells Fargo, as well as online lenders such as FirstAgain and online loan brokers such as Prosper.com, provide unsecured personal loans. |
| MYTH #2 |
Unsecured Loans are for Borrowers with Bad Credit and Little to No Assets |
| REALITY: |
With the availability of home equity loans shrinking as lending standards tighten and home values decline, individuals with excellent credit and significant assets are more actively seeking unsecured loans. Most traditional lenders offer unsecured loans to excellent-credit borrowers and FirstAgain's paperless loan experience is tailored exclusively for those borrowers. |
| MYTH #3: |
Unsecured Loans are only Useful for Borrowing Small Sums of Money |
| REALITY: |
The days of unsecured loans being associated with "pay day" advances are gone. Wells Fargo and FirstAgain offer unsecured loans for up to $100,000. |
| MYTH #4: |
Unsecured Loans Come with Significantly Higher Interest Rates than Secured Loans |
| REALITY: |
Secured loans do translate into lower interest rates, especially for borrowers with less than stellar credit. However, as unsecured loans continue to grow more prevalent among borrowers with excellent credit, interest rates can be expected to become more competitive. At FirstAgain, they already are. Example: According to data from Bankrate.com, the national average interest rate on a secured 48-month new car loan is 6.78 percent. FirstAgain offers an unsecured loan for the same purpose with an interest rate of 6.15 percent. |
| MYTH #5: |
Getting An Unsecured Loan Is a Difficult Process Requiring Extensive Paperwork |
| REALITY: |
Unsecured loans actually reduce paperwork and simplify the lending process by eliminating the need for liens and other forms of collateralization. In fact, FirstAgain has created the nation's first completely paperless loan experience. Loan documents are even signed online. |
FirstAgain is redefining consumer lending for individuals with excellent credit with its AnythingLoan, the
first completely paperless, online loan with low rates, same-day funding and unparalleled customer
experience.
