When you begin looking for some type of loan, you’ll find that there are options for secured and unsecured financing. It’s true that secured financing does provide certain benefits. The same is true with unsecured loans. What can you expect if you go with the latter choice? Here are four key advantages to keep in mind.

Do What You Want With Your Assets

With this option, there’s no need to pledge one or more of your assets in order to get the loan. The fact is that you are the collateral in unsecured loans. It’s your past payment history, income level, and other factors that motivates the lender to make an offer.

This means that your property and other assets remain unfettered by any type of claim on the part of the lender. You’re free to sell, trade, or give away anything that you own without having to clear it with the lender or offer a different asset as collateral. In terms of keeping things simple, this is a huge benefit.

Loan Durations Vary

There are unsecured loans designed for all sorts of needs. It’s not unusual for this type of loan to have a duration of anywhere from a month to a few years. That’s great if you only need the money for a short period of time, perhaps to handle a situation like a car repair.

Keep in mind that you will pay more interest on loans that have a longer duration. It’s to your benefit to pay off the loan as quickly as possible. With most types of unsecured loans, early repayment does not include a penalty and you will end up paying less interest.

Many Unsecured Loans Help Improve Credit Scores

While you want to check with the lender first, it’s not unusual for unsecured loans to be a great way to boost your credit scores. This can be important for someone who recently completed a personal bankruptcy and wants to add some positive comments to their credit reports. Go with a lender who reports to the major agencies monthly and make sure the installment payments are made on time. Within the course of a year or two, your good payment record will make a significant difference in your scores.

Lenders Like Repeat Clients

Here’s another point in favor of unsecured loans from the right lenders. Many of them, including those that offer loans with shorter durations, love to do business with borrowers on a recurring basis. That means if you’re approved for an express loan and pay it off on time, the lender will be open to providing another loan the next time you need some money for just about any purpose. Even as you improve your credit scores, you create rapport with a lender that can often speed up the approval process. That comes in handy when you need the cash as quickly as possible.

There are other benefits associated with unsecured loans. Take a moment and determine if this financial solution would be the best approach for you. If so, spend some time comparing lenders and see what sort of deal you can receive. The right one will have money in your account quickly and be relatively easy to repay.