Home improvement loans are loans home owners get when they’re in need of costly home improvement repairs. A few years ago lenders started offering many of these loans without the need for collateral and needless to say borrowers have been jumping at the opportunity. It’s a great option for cases where there is little to no equity in the home. But, if you decide to look into getting an unsecured home repair loan, there are some things you need to keep in mind.
For one, you will need to have pretty decent credit. Also, you could pay higher interest rates without collateral. The upside to these loans is that they often have no start-up fees and the loan terms are shorter.