Alternatives to home equity loans or mortgage refinancing? #homefinancing For those having good credit history, a personal loan may be a good alternative to a home equity loan or mortgage financing. A personal loan is a loan that’s not backed by collateral. It‘s also known as a signature loan or unsecured loan. An unsecured loan is usually based on the borrower's integrity and ability to pay. A personal loan is typically a short term loan that can be used for a variety of things such as home improvement, patio furniture, digital cameras, vacations, or to pay off high interest debt. For people looking for an unsecured loan, but have bad credit history or no credit history, a cash advance may be an option. A Cash Advance or Payday Loan is a very short term loan that’s typically based on the applicants having a regular paycheck.