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There is no risk of losing your assets

Not everyone is capable of providing security for their loans. Some people may already be using their homes or vehicles for existing loans, some may not have anything of adequate value, and others mi…...

No need to have assets appraised

While your credit score and spending habits won't make as much of an impact in a secured loan application, you will have to go through some kind of appraisal process for the asset you're pl…...

It helps improve your credit rating

Variety in your credit mix – that is, the diversity of your debt and payment history – can make a positive impact on your credit rating. Remember there are different types of loans. If you have a cre…...

Higher interest rates

As mentioned before, an unsecured loan will probably have a higher interest rate than secured loans of the same or similar value. This is because lenders want to minimise risk, and without a security…...

You'll need a reasonable credit score to qualify

Again, this is about lenders wanting to minimise risks. Your creditworthiness is determined by your past financial behaviour and your ability to pay back debts on time. Fail to pay on time, or worse,…...

Lenders can take legal action against you if you fail to pay

Most unsecured loan agreements stipulate that in the event a borrower fails to pay their loan, lenders can take borrowers to court. If a judgment is made against you, you could face even more financi…...

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