what does that mean?
2006-09-05 10:42:46 · 15 answers · asked by kkds14 3 in Business & Finance ➔ Personal Finance
means you don't have anything worth putting up as collateral.
2006-09-05 10:44:47 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It means that they don't think you have the means, in the form of property or savings, usually, to repay the loan if something should happen and you lose your job. They do not consider you a good risk.
As an example, my husband and I own a home with a lot of equity in it. We also have modest savings, not huge by any means, but some. If we apply for a car loan, we will apply based on our total income, but the bank will consider not only our total income, but other means which we have to pay the loan. We are a good risk, because even if my husband were to be out of work for some time, and there were no NEW income coming in, we still have enough money in savings and in equity in our home that we could pay our obligations for the car loan.
It can be very difficult to get a good-sized loan if you are just starting out, or if you have had financial problems in the past. Lenders, including banks and credit card companies, pay a lot of attention to not only your current income, but your past financial history, as well. If you are just starting out, you might see if someone like a parent, who does have enough security, will co-sign with you. That means that the loan is still your responsibility, but they agree that if you should default (be unable or unwilling to pay for any reason), they will pay the rest of the loan for you. Often, that's the only way to get a loan if you have no history, or a poor history. And if someone does co-sign, treat it like gold, and make sure you pay that loan on time and in full, because later it will show that you are responsible, and will make you a better risk for lenders.
2006-09-05 17:56:55 · answer #2 · answered by Bronwen 7 · 0⤊ 0⤋
Security is another term for collatral. If you are trying to get a loan for a house and you do not have a substantial credit history or dont make enough money to cover the loan they will say you do not have enough security
2006-09-05 17:45:19 · answer #3 · answered by CaptKert 3 · 0⤊ 0⤋
It mean you either don't have enough collateral incase you fail to pay the loan back and/or you don't have a job that pays you enough money that they feel you will be capable of paying back the loan.
2006-09-05 17:45:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Basically, it means that if you can't pay the loan, you don't have anything worth enough value to take back from you (collateral) to cover the loan.
2006-09-05 17:45:55 · answer #5 · answered by MzHazelnut22 3 · 0⤊ 0⤋
You need to have enough money or assets somewhere to be able to pay off the loan if you lose your job or something.
It sounds like they aren't confident that you have enough.
2006-09-05 17:47:55 · answer #6 · answered by Bella 2 · 0⤊ 0⤋
It means you do not have enough assets to support the loan amount you are applying for.
2006-09-05 17:45:20 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You don't have enough collateral....cash in the bank to loan you the money.
2006-09-05 17:44:57 · answer #8 · answered by voandginger 4 · 0⤊ 0⤋
The loan you are seeking is higher than the tangible assets you possess, which they could possibly claim against should you default on the repayments.
2006-09-05 17:45:25 · answer #9 · answered by Anonymous · 0⤊ 0⤋
It means your credit isnt good enough and you dont have any colateral. (IE a house, a car, something to back the loan up with)
2006-09-05 17:45:24 · answer #10 · answered by wrf3k 5 · 0⤊ 0⤋
It means that they don't have enough of a reason to believe that you'll pay them back. They're talking about their security, not yours.
2006-09-05 17:45:21 · answer #11 · answered by Anonymous · 0⤊ 0⤋