Unsecured loans are some of the most popular loans in the USA as they can be used for a variety of purposes. Whether you are looking to start a business, buy a gift or perhaps have medical bills or car repairs that you need to pay for, unsecured loans can provide you with money fast and directly to you.
Unsecured loans are a potentially fast way to borrow money instantly online via direct lenders or brokers and loan connection services.
Read our guide to find out more about what unsecured loans are, how they work, who is eligible to apply for one as well as the top uses for them in the USA.
What is an Unsecured Loan?
More than 20 million American citizens have applied for an unsecured loan in 2022. An unsecured loan is a personal loan which, unlike a secured loan, requires no collateral to borrow, meaning you will not have to pledge an asset, such as a house or car, to a lender if you are unable to repay the money borrowed. Common unsecured loans include the likes of online payday loans as well as various bad credit options.
Lenders instead will examine your creditworthiness before giving you the amount of money you wish to borrow. These types of loans, in contrast to secured ones, can be used for any purpose you desire.
Where Can I Apply for an Unsecured Loan?
You can apply for an unsecured personal loan from a variety of places, such as a bank, in-person lender or an online loans broker or loans comparison site. Online lenders have become an increasingly popular choice for US citizens to borrow unsecured loans, as they offer fast, secure and reliable services with the additional flexibility over your location.
There are still many loan stores across the US that can help you find the unsecured loan you need for your arsenal and financial circumstances. You should always make sure that unsecured and payday lending is legal in your state, as is the case in states like Texas, Florida and Alabama. These loans are illegal however in a number of states like New York.
How Do I Apply for an Unsecured Loan?
Applying for an unsecured loan online is straightforward. Simply apply online by filling out our loan request forms, before being given an instant decision on your screen. Kallyss could give you an unsecured loan fast and securely to your bank account the same day, or if not, the next business day.
In order to qualify for an unsecured loan, you must first meet some basic eligibility criteria:
- Be a US citizen
- Be over the age of 18
- Have a steady income
- Have an active bank account
Applying for an unsecured loan in the USA is straightforward and is typically done through either a payday store or online through an online direct lender, a loans connection service or a loan broker. It is important that before you apply for any unsecured loan that you consider the alternatives.
What Do People Use Unsecured Loan For in the USA?
Below, we have compiled a list of the top 10 popular uses of an unsecured loan in the USA. This list can help guide you to better understand how unsecured loans work and what you can use one for; whether you need a 600 dollar loan or you need to borrow $2000 or potentially more.
Using Unsecured Loans for Bad Credit
Approximately only 20% of Americans have a credit score above 800 (a very high score), meaning millions of US citizens are experiencing bad credit today and will unfortunately continue to due to the rising costs of everyday living.
Nonetheless, unsecured personal loans are an increasingly popular form for US citizens to try and improve their credit score. Unsecured loans, unlike secured loans, require less of a background credit check meaning you can borrow money to help you pay off any current debt.
Consequently, unsecured loans can help people get their credit score back on track faster and help them become debt-free sooner.
Borrowing Money to Pay For a Wedding
As unsecured loan can be used for any personal reason, many Americans are now using them to pay for big life events such as weddings.
With an average of 2 million marriages taking place annually, it is of no surprise that over $50 billion is spent on weddings in America each year. Many people nowadays will borrow unsecured loans online to help pay for any additional wedding costs, such as wedding outfits, cakes and travel costs to and from venues.
Unsecured loans are a great option if you need that extra help to make your big day special, as they can be given quickly and can be repaid later.
Unsecured Loans to Pay For Medical Bills
America is renowned for its expensive healthcare, with trillions of dollars being spent each year into the medical sector. On average, a US citizen will spend over $320,000 on medical expenditures over their lifetime.
Unsecured loans are one of the most popular ways to pay for medical bills, in the form of medical bill loans. Unfortunately, health can sometimes be unpredictable so you may find yourself with an unexpected and costly medical bill. However, unsecured loans can help pay these off fast so that you don’t accrue any additional interest on the original fee.
Help Pay For Divorce Costs
While many Americans get married each year, divorce has increased with 3.2 people per 1,000 getting a divorce each year. Divorce costs can also be costly and ones which you cannot avoid. Unsecured personal loans, nonetheless, can help make this difficult process easier by providing additional financial support.
Unsecured Loans Can Help Pay for Emergency Car Repairs
Over 92% of Americans own a car in 2022, and so it will be of no surprise that unsecured loans often help people pay for repairs. No one can predict a car breaking down, and so an unsecured loan is a great option as it can be received fast and hassle-free. It could be the case that you simply need a $500 loan to pay for some urgent repairs for your car that you need to get to work every day.
Holiday Season and Gifts
The Holiday Season is one of the most expensive times all year in America. Making this a special time of year is a priority to many, where family and friends get together and show their love through gift-giving. Using an unsecured personal loan can help make Christmas more affordable while ensuring no one misses out.
Last Minute Travel Costs
Last minute travel costs, whether for work, to see an ill relative or a funeral, are often unpredictable. So, an unsecured loan can help pay for your travel expenses, whether that be a plane fare or to fill your car up with gas. Travel costs can be expensive, so an unsecured loan can ensure that your other monthly payments are attended to while helping you get where you need to be on time.
Paying For Additional Pet Expenses
Animals are an important part of many people’s lives. However, they come with a price. Whether you have an unexpected veterinary bill or would like to pay off another debt one month while ensuring your pet bills are taken care of, an unsecured loan can help.
To Help Pay for House Repairs or Home Improvements
Whether you are renting or buying a home, there will more than likely come a time where you will need to pay for house repairs. Unsecured personal loans are a great option when it comes to such scenarios, as they can provide you the amount you need. Unsecured personal loans are also frequently used for home improvements, such as redecorating a room or upgrading your current furniture.
Unsecured Loans for Debt Consolidation
Unsecured loans can also help you pay off any other ongoing debts you may have, such as student or credit card loans. Consolidating, or combining, your debt is a great way to pay off our debts quicker and avoid ending up with bad credit or a very bad credit score. However, it is important to check beforehand that you can keep on top of the additional repayments and interest rates. When it comes to debt consolidation, the method is quite simple. You would simply add up all of your outstanding debts and then take out a loan to pay off all of the numerous loans and debts you have at once.