Your Oratory

Unsecured consolidation loan is a loan that does not require collateral.  It is exactly the opposite of a secured loan where you are required to submit a secured property such as your home or car to serve as collateral against the loan.

On the other hand, if you have bad credit rating, you cannot avail of unsecured consolidation loan since creditors are put in higher risk as the loan does not have collateral.  Thus, this loan is preferable if you do not want or have a property to submit as security for creditors in case of nonpayment.  The primary advantage of this loan is removing the threat of losing something valuable to you.  However, the interest rate associated with this type of loan is a little higher compared to a secured loan.