Unsecured Loan is a kind of loan whose collateral is only the borrower’s "creditworthiness" and not any form asset. Unsecured loan uses the credibility of the borrower and the trust of the lender that he or she will keep his or her word to pay back the debt. In trading, borrowers are able to have approved unsecured loans because they have very high credit ratings. Unsecured loans are also referred to as signature loans or personal loans.