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Lenders Disclosure of Terms. The lender you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan.
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Depending on the credit score the lender may ask if collateral is needed to approve the loan. Secured Loan For individuals with lower credit scores, usually less than 700. The term secured means the borrower must put up collateral, such as a home or a car, in case the loan is not repaid.
Therefore, the lender is guaranteed to obtain an asset of the borrower in the event they are paid-back. Unsecured Loan For individuals with higher credit scores, 700 and above. Does not require the borrower to provide collateral. Step 4 Sign the Agreement.