Unsecured Loan

by | Jun 19, 2025 | Terminologies

An unsecured loan does not require any collateral. Instead, the lender relies on the borrower’s creditworthiness and ability to repay. Since these loans are riskier for lenders, they tend to have higher interest rates.

Soft Inquiry

by | Jun 18, 2025 | Terminologies

A soft inquiry happens when a borrower’s credit report is checked for reasons other than a loan application, such as for pre-approval offers or identity verification. Soft inquiries do not impact the borrower’s credit score.

Short-Term Loan

by | Jun 17, 2025 | Terminologies

A short-term loan is a loan with a short repayment period, typically ranging from a few days to a few months. These loans are often used for urgent financial needs and are commonly found in online lending apps.

Secured Loan

by | Jun 16, 2025 | Terminologies

A secured loan requires the borrower to pledge an asset (e.g., a car or home) as collateral to back the loan. If the borrower defaults, the lender can seize the collateral to recover their loss. These loans usually offer lower interest rates due to reduced risk for...