Hi,
Some other unsecured personal loans take the form of charge cards for department stores, gas stations, credit cards for home improvement stores, small businesses which have open charge accounts, etc.,. There are inherent risks associated with each one of these. Many times we find ourselves purchasing goods at a department store or home improvement store, because that is where we have a credit card, even though the same items might be available for less at another store. The same scenario applies to gas purchases and is particularly important due to the large fluctuations in gas prices from one station to another. Also, charge cards influence us to use convenience as a value when buying, rather than price. These are some examples of various unsecured loans we grant ourselves. Using these types of loans can become risky if we are experiencing financial difficulty. When experiencing financial trouble, it is imperative to contact these creditors as soon as possible.
Tomorrow I will discuss secured loans.
Until then,
Alan
Showing posts with label unsecured loans. Show all posts
Showing posts with label unsecured loans. Show all posts
Tuesday, February 20, 2007
Friday, February 16, 2007
Unsecured Personal Loans
Hi,
Unsecured loans have come a long way since their inception. The pinnacle has been reached in the form of bank credit cards that allow the consumer to take out many little unsecured loans. Every time you make a purchase on your credit card, you are, in effect, taking out another loan from your credit card company. At the end of each month your credit card company combines all your many little unsecured loans and bills you for the total. Compared to fifty years ago, when most unsecured loans involved going and talking to your bank, filling out applications, and going through an approval process, today receiving unsolicited pre-approved credit cards in the mail is considered a streamlined way to get consumer credit business. This practice of the lending industry results in many financial problems for the credit user. One of the major advantages of past credit practices was the full disclosure of the terms and conditions of the loans to the customers. This allowed consumers to be fully aware of the terms, conditions, and obligations of their loans before they accepted them. In today's credit market, full disclosure is given often times in a labyrinth of small light print on the back page of one of the credit application forms. Tomorrow I'm going to talk about some of the old school loan habits you can use to manage your financial affairs in today's credit market.
Until then,
Alan
Unsecured loans have come a long way since their inception. The pinnacle has been reached in the form of bank credit cards that allow the consumer to take out many little unsecured loans. Every time you make a purchase on your credit card, you are, in effect, taking out another loan from your credit card company. At the end of each month your credit card company combines all your many little unsecured loans and bills you for the total. Compared to fifty years ago, when most unsecured loans involved going and talking to your bank, filling out applications, and going through an approval process, today receiving unsolicited pre-approved credit cards in the mail is considered a streamlined way to get consumer credit business. This practice of the lending industry results in many financial problems for the credit user. One of the major advantages of past credit practices was the full disclosure of the terms and conditions of the loans to the customers. This allowed consumers to be fully aware of the terms, conditions, and obligations of their loans before they accepted them. In today's credit market, full disclosure is given often times in a labyrinth of small light print on the back page of one of the credit application forms. Tomorrow I'm going to talk about some of the old school loan habits you can use to manage your financial affairs in today's credit market.
Until then,
Alan
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