There are instances wherein an individual looking to secure a loan will not have any property under his name to offer as collateral, and will thus result in the loan being declined by the lender.  When this happens, a borrower needs to consider applying for unsecured Personal Loans. With the absence of collateral, lenders will now base their decision on a borrower’s credit rating.  Although multiple of lenders now offer loans regardless of an individual’s credit score, interest rates and loan amounts will still be determined by a borrower’s credit worthiness. A borrower with a bad credit score will most likely have a higher interest rate and an approved loan amount significantly lower than a borrower with proven credit worthiness.