Unsurprisingly those days came to an abrupt end and it is now far more difficult for somebody who has no collateral to borrow money. To do so one is usually required to have a good credit history, a permanent job and a residential status that is demonstrable, long-term and secure.

Even so there remains a risk of default, and so the lender effectively takes out insurance against this risk by charging a higher rate of interest than would have been the case had the borrower been able to offer security. As a rule of thumb the less strict the criteria for qualification are, the higher the repayments will usually be. Even mainstream cheap loan unsecured lenders have been known to set an APR of up to 50% when granting loans to unsecured borrowers.

So when one speaks of obtaining a cheap loan unsecured one is speaking relatively. It is entirely reasonable that a lender would want to seek some protection against default, however it is equally understandable that the responsible borrower would not wish to be paying too much for the dishonesty or misfortune of others. It is therefore always a good idea to shop around for the best deal and the lowest APR available to unsecured lenders.

Using a good price comparison website could save one a small fortune by finding the successful unsecured loan with the lowest APR and the best repayment terms available. Compare cheap loan unsecured deals using the above companies and websites today.