
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
An unsecured car loan works like a personal loan: You don’t have to put up any collateral and therefore can borrow more than the value of your vehicle. You can borrow more to cover insurance, additional costs or anything you need.
However, unsecured loans You may also be subject to stricter eligibility criteria, like good credit, but your car likely won’t need to meet any criteria.
Many auto lenders provide secured car loans only. You may want to click over to the “Personal loans” tab for unsecured loan options that don’t require collateral.
Most personal loan lenders don’t require collateral. Some even offer specialized loans for car purchases.
The most important part of picking a lender is comparing the loans you’re offered. Here are some quick tips to help you focus your decision:
If you borrow more than the cost of your car, be careful not to apply for more than you can afford. Work out a budget to ensure you will be able to afford your repayments. These loans tend to come with higher rates than secured car loans, so take this into account when submitting an application.
When you have an unsecured car loan, you can use your funds to purchase more than just the car. Dealer extras can be a good deal if you know what you’re getting and what you want to avoid. However, it’s often not worth it since you can often get the same service elsewhere for cheaper — if it’s even necessary at all.
Here is a list of common dealer extras and when you might not want to go for them.
An unsecured car loan can be a quick way to finance your next vehicle, but it comes with its own risks that you’ll need to understand before you borrow. Compare your rates and read up on personal loans so you can make the most informed decision.
If you’re interested in a traditional auto loan secured by your vehicle purchase, you can visit our page on secured car loans compare lenders.
Image source: Shutterstock
A store card you can only use at the Horizon Outlet online store.
Learn about what will happen to your home loan when you die and how to avoid any nasty situations with some pre-planning.
Some lenders will approve a home loan even though you’re not receiving a permanent income. However, you’ll need to undergo some assessments.
The best and worst states to retire based on affordability; crime and poverty; culture; weather and location; and health and wellbeing.
A 101 guide covering the types of mortgage loans every homebuyer should know.
With $1,400 or more coming to most Americans’ wallets, here’s how you can fund your car down payment and save money on your loan.
Low interest rates set this connection service apart.
From making a business plan and getting insurance to marketing and setting your prices — here’s how to start your own cleaning business.
Reduce your debt by around 30% after fees — but only if you can stick with the program. Here’s how.
Don’t be fooled by false promises — here are red flags to watch out for and tips to find a legit company.