Tips on Getting Personal Unsecured Loans With Bad Credit

There are many reasons why an individual may have a low credit score. Apart from the obvious mismanagement of their finances, there are many other reasons why somebody may have poor credit, an illness in the family or a divorce are just two examples. Now if you have bad credit and you need some cash for an emergency it can be tough. However this does not mean that you cannot qualify for personal unsecured loans with bad credit.

If you find yourself in this situation and your credit score does not meet the minimum requirements of you local bank, this does not mean that you will not be able to qualify for a bad credit loan. There are still lenders who will work with you, but you will have to pay a higher interest rate than what would be available to you if you had good credit.

How difficult it will be for you to qualify for this type of loan will depend on the loan amount and the loan term. If you are applying for a secured loan you will need to provide collateral such as your home or another asset you may own. Now you need to be aware that if you default on this type of loan, the lender may foreclose on your home. Before you take on a secured loan be sure you can afford the repayments.

The majority of people applying for a bad credit personal loan will be looking for an unsecured loan. If the loan is for $1500 or less, then you should have no problem. The payday loan lenders will provide you with a short term unsecured loan. This type of loan can be very expensive and should be avoided unless it's a dire emergency. It is much better to try and borrow what you need from a family member of friend for the short time needed.

Before you apply for any type of bad credit loan you should consider all the other options available to you. Do you really need the loan right now? Would it be possible to borrow from family or friends? Would your employer be willing to give you a cash advance against future pay checks? All the aforementioned loan options would be much cheaper than getting an unsecured personal loan. Bad credit loans are designed as a short term financial solution only.

You should also work on improving your credit score by making all your payments on time and this will make it easier to qualify for a loan in the future. Get a copy of your credit score and check it for mistakes and get them corrected as this will also help raise your credit rating.

As with any type of financial transaction, you should avoid making a hasty decision when it comes to applying for or accepting a bad credit loan. Loan application can be completed very quickly online and approval takes just a few hours or days at most. Therefore you need to take the time to compare loan offers to get the best terms. Do not be rushed into making a decision and shop around for the best deal.

If you believe that a bad credit personal loan is the preferred solution for your current financial needs, be sure that you can afford the monthly payments. Remember, if you fail to make repayments when due you will create more credit problems for the future.

Noel Hynes is an online researcher on the subject of Personal Unsecured Loans With Bad Credit. You can find further information on Bad Credit Loans Here.

Article Source: http://EzineArticles.com/expert/N_Hynes/152776

7 Pros and Cons of Unsecured Loans - Avoid These Traps!

Unsecured loans are loans that have no collateral, like a home or a car or stock, backing up the loan and available to the lender if the loan goes bad. These loans are issued solely on the promise of the borrower to pay it back according to agreed upon terms. A document, usually a loan contract is signed and the money is issued. These loans are also known as signature loans.

Usually unsecured loans are for one time expenses like a medical bill or help in meeting a down payment on a home or expensive auto or perhaps taking advantage of a lower interest rate to pay off other, high interest rate debts. They can be a useful financial tool for the borrower but they can also be fraught with danger. Here are a few of the pros and cons of unsecured loans that you should be aware of.

1. IOUs

Perhaps the simplest of unsecured loans is the old IOU where the borrower gets funds from a friend or family member. These loans should be entered into, particularly by the lender, very carefully. There's usually a reason why the borrower is going to a family member rather than a financial institution. If the loan goes bad, it's not just bad debt it could be bad blood and a family relationship ruined.

2. Credit Cards

The most popular form of unsecured loans is by far and away the billions in credit card debt that consumers rack up each year. You may not think of a credit card transaction as a loan but it is. You purchase an item with what is essentially a loan or credit and you sign a form promising to pay it back. While the credit card company is paying the merchant for your purchase, you are obligated to pay the card company according to the terms and conditions you agreed to when you got the card. In the past, if your credit rating slipped, the card company could arbitrarily increase the interest rate you pay some going as high as 30%. Thanks to a recently passed law, that practice is now banned.

3. Banks and Credit Unions

Some banks still offer signature loans but they are more likely to offer a personal line of credit. How much you qualify for and at what interest rate depends on your credit worthiness. Credit unions typically have lower rates for unsecured loans and if you have good credit, getting the loan should be no problem.

4. Astronomical interest rates

Lending institutions argue that because no collateral is offered to secure a loan there is a greater risk and that justifies a greater interest rate. If you have bad credit and you go for one of the short term loans you could be paying as much as 400% APR. Consumers don't really see it that way because those loans are usually so small (less than $1000) all they are really concerned with is what the payment is. For example a $250 loan for 2 weeks will require a total payback of $234. $34 doesn't sound like much to a consumer who needs cash now but it is a huge profit for the lender.

5. Unsecured loans can be discharged in bankruptcy

If you have to file bankruptcy, chances are your unpaid unsecured loans will be totally discharged as they have the least rights to assets in a bankruptcy. Any loan that has collateral securing it, like an auto loan or mortgage is treated differently.

6. Unsecured consumer loans fall under the Fair Debt Collection Practices Act

Unsecured consumer loans like credit cards are covered under the FDCPA and the consumer is offered some protection from the behavior of collection agencies should the loan default. For example collectors can not make harassing calls, call you at work, threaten law suits when they have no intention to sue and a host of other restrictions. The law also allows to sue collectors who violate the act and the consumer can receive up to $1000 plus attorney's fees.

7. Know your numbers

Because the only thing backing unsecured loans is your promise to pay it back, lenders will obviously want to see your credit report and FICO score when considering your application. The better the credit history and the better the FICO score the better position you are in to negotiate a lower interest rate. Federal law allows you to get a copy of your credit report free once a year. Download it from the free site and review it for accuracy. If there are errors, resolve those with the reporting agency before applying for a loan. The better financial profile you can present the less the loan will cost you.

Unsecured loans have their place but it is imperative you understand the terms and conditions before you sign. Always deal with a reputable lender when seeking out these types of loans. Selecting the wrong lender could end up costing you thousands.

As an expert in consumer credit, Mark Polan knows the traps that people can fall into when they borrow unsecured loans from less than reputable lenders. If you find yourself in that position Mark advises that you check out solutions at Dallas Debt Consolidation.

Article Source: http://EzineArticles.com/expert/Mark_Polman/693117

Personal Finance Tips - How To Get Yourself An Unsecured Loan!

If you are considering trying to get an unsecured loan you will need to make sure that you have a really good credit background. The reason is that this is the kind of loan where the lender does not require that you have any kind of collateral in order to get the loan. Another thing to note here is that these kinds of loans usually have a lot higher interest rate than a secured loan generally does.

Before you go and meet with the lender you will need to gather up all of your paycheck stubs or have some sort of statement that shows your monthly income that should go back six to twelve months. They need to see that you have a steady income coming in, in order for them to consider giving you this kind of a loan.

You should first go to your bank or financial institution that you deal with on a regular basis and see if they offer unsecured loans as part of their loan program. You will more than likely get better terms if you already do business with them.

It's important that you are able to show them that your income is stable when you go to meet with them, this is why you need to have all of your proof of income handy when you go to meet with them. If you happen to be trying to borrow from a lender that works online and you don't have a face to face with them you should ask your employer for a letter that confirms your income and your job security.

It's a smart thing to do if you shop around compare the different terms that are available to you through different lenders. You then can use the information as a way to bargain when you are dealing with a certain lending institution to try and get the best rate that you can.

When you have decided on who to go with you can then sit down and negotiate the loan and it's terms, especially the interest rate. The lender will more than likely try to offer you a rate that is inflated and you can try then to see if you can't talk them down with regards to that. If you have good credit most of these lenders will allow you to negotiate. It's important to note here that any unsecured loan needs to always come with a fixed rate with a fixed monthly payment.

Make sure that after the documents are written up that they are exactly the same as what you discussed with the lender. You don't want to find out later that there was a mistake or they changed something without telling you ahead of time. If you do find a discrepancy then you need to simply walk away and find someone else to get the loan from.

If the loan you get is through your own bank, you might be able to get them to take a percentage off of your interest by taking monthly payments right out of your bank account, so make sure that you ask them about this.

For more free Personal Finance Information download Amy's Free Personal Finance Information Pack at http://www.free-finance-info.com and join thousands of other people who are taking control of their Personal Finances.

For other free information on a variety of issues please visit http://www.free-info-site.com

Article Source: http://EzineArticles.com/expert/Amy_Myer/844760

Large, Unsecured Personal Loans Get Approved Quickly

Your financial resources are getting scarcer and scarcer. The stacks of bills are getting higher and higher. You are missing payments and your credit scores are getting lower and lower. What is looking better and better is a rapid infusion of a good amount of cash to get yourself out of the financial doldrums. If you have poor credit and are seeking a sizable amount of cash, approaching a traditional lender such as a bank or credit union is probably not going to work. They have tightened their lending qualifications, and a large, unsecured personal loan requested by a person with a poor credit history will have a very tough time getting approved.

Income-to-Debt Ratio Means More Than Credit Scores

When traditional lenders will not lend, it is time to turn to the non-traditional lenders that you are apt to find online. The lender will mainly be looking to see that you have a steady job with a salary that allows you to meet all your typical monthly obligations with income left over to cover another monthly payment on your large, unsecured personal loan. Many of the other bench marks are easy to meet and do not usually include a credit check. The lender may give your credit history a glance, so be sure there are no inaccuracies.

Build Your Creditworthiness

You may have figured that presently there is no way to quickly renew your creditworthiness, but there is for non-traditional lenders. Start out low. Borrow $500, or as much as the lender will give you at the moment, and pay it back on time or even sooner. Then go for $1000. When you go for $10,000, the lender is more likely to approve such a large, unsecured personal loan because of your recent good performance on the smaller loans. Since these loans are unsecured, you do not have to put up any collateral or valuable property.

You Can Measure Up to Easy Benchmarks for a Large, Unsecured Personal Loan

Though they do not usually check credit ratings, these lenders do require some information to help them in case you do default on your large, unsecured personal loan. You will need:

- Government Identification

Usually two, driving permit, passport, military identification card, state identification card, etc.

- Employment Proof

Usually pay stubs or proof of bank direct deposit will suffice.

- Social Security Number

Also helps verify legality of immigration status.

- Proof of Residency

Utility bill with same address as on your identification, employer records, or bank records.

Often your potential lender can check your documentation online. Faxing or scanning this documentation is usually acceptable.

Tips on Non-Traditional Lenders

Many non-traditional lenders are out there and eager to make large unsecured personal loans to folks with poor credit. So, you need to shop diligently to get the best interest rates, lowest fees and most comfortable repayment terms. Take your time; these lenders are used to working with borrowers who have poor credit. Never accept a condescending tone from a lender and do not tolerate one who tells you that they are doing you a favor by granting you a large, unsecured personal loan.

Do Your Financial Homework

Before you go looking for a large, unsecured personal loan, you should sit down a put together an honest budget. Figure out the amount you will need to set aside to see you through a rainy day. Figure out a strategy for paying back your hefty loan. Despite the fact that your lender did not use your credit history to grant you a loan, they will still report any late payments and defaults to the credit agencies. Do not default on the loan - it will make your credit worse. However, if you meet all the terms of your contract, you will be greatly increasing your creditworthiness to other lenders.

Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Easy Home Equity Loan please visit EasyLoanForYou.com

Article Source: http://EzineArticles.com/expert/Joycelyn_Crawford/82514

Sourcing Unsecured Personal Loans From Private Lenders: A Simple Guide

Knowing where to go to source an unsecured personal loan, especially when it is large, can be the key to getting approval on the application. For many of us, the idea of searching high and low for a lender is off-putting. But it is only through this method that we can be sure of finding the best terms and conditions open to us.

But, while traditional lenders, like banks, are the first to jump into our minds, it is often a waste of time considering them. This is because, when it comes to granting unsecured loans for personal use, banks are especially strict about approvals. Their terms are bad, their interest rates are high and they often include severe penalties in the case of a payment being missed.

For these reasons, turning to private lenders is normally the best course of action. These lenders are far more flexible and are more willing to issue personal loans approved without security. Operating over the internet, their terms are better, but it is also important to find out who they are before committing to any deal.

Find the Right Private Lender

The problem with the internet is that some unscrupulous operators are there. That is why it is essential that online lenders providing secured or unsecured personal loans are checked out.

The best source is the Better Business Bureau, which grades tens of thousands of businesses in a variety of sectors. Their assessment is based on any complaints lodged against them, so it is accurate and useful. Always seek an A-grade financial operator before even considering to apply for any unsecured loans for personal use.

List the top 5 lenders and contact them. Check out their websites and find out about the very best terms they are willing to offer. Keep in mind that these lenders are willing to negotiate more than your bank is. So, personal loans approved without security can prove to be a great deal.

Find the Right Loan Package

As always, take a look at a variety of unsecured personal loan options before deciding on which to go for. This is where getting your calculations right is so important. The fact is that the terms of an unsecured loan are always going to be poorer than those of a secured loan, simply because of the lack of security.

Different lenders will charge different interest rates, which is why it is so important to carry out an extensive search before applying for any unsecured loans for personal use. It is also essential that the small print is read carefully. These can reveal any penalties and hidden charges that will bump up the cost of the loan.

While online lenders may be willing to issue personal loans approved without security, they are still in the business of making profits, so read the loan contract in detail.

Have Everything Ready

Finally, be sure to have all the documentation ready. Application forms for unsecured personal loans are filled out online, so unless attached scans are required, the info will all be placed within the form. Still, you will need details like social security number and bank account number, to hand, as they need to be accurate if your unsecured loan for personal use is to be approved.

Also, be sure that your bank account is in order. Issuing a personal loan approved without security is one thing, but the lender needs to deposit it into your account. Ideally, an automatic repayment schedule will be agreed with your bank too.

Getting unsecured personal loans approved by private lenders online is not difficult as long as everything is in order. Follow the short guide above and your chances of success are greatly improved.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com

Article Source: http://EzineArticles.com/expert/Donna_N_Hammond/1178781

Getting Unsecured Loans for Bad Credit Management: The Perfect Solution

There was a time when lenders were expected to turn down loan applications from applicants with bad credit ratings. The risks, they would say, were too high and the interest rate would make repayments too high. But in fact, getting an unsecured loan for bad credit management purposes can be a perfect solution to financial problems.

While it is true that getting loan approval with no collateral is not always easy, there are some grounds on which lenders are willing to give the benefit of the doubt. One of these is the purpose of the loan, with the understanding that an applicant who is trying to restore their financial status will be a reliable borrower.

Of course, this does not mean that an unsecured loan is easy to get if the stated purpose is admirable. There is a set of criteria to meet, and if they are not satisfied that approval is not going to be granted.

Unsecured Vs Secured Loans

In case there might be some confusion over the difference between unsecured and secured loans, it all comes down to the availability of collateral. An item of value is provided as compensation should the borrower fail to make their repayments. It can be difficult to get unsecured loans, for bad credit borrowers especially, because there is nothing offered as security.

The biggest problem is finding an item that is worth the same as the value of the proposed loan. If a large sum, like $25,000, is required then one or more items worth $25,000 is needed. For many people with bad credit histories, property of that kind of value is practically impossible to find.

Getting approval with no collateral is all about convincing the lender that their investment is safe, and this can be accomplished in other ways. Proof of income is just one of them, but is not always the sure thing that is needed to seal the deal for an unsecured loan.

Improving the Application

It is not that difficult to strengthen an application for an unsecured loan for bad credit management. As already mentioned, the fact that the purpose of the loan is to take control of the financial situation is a positive aspect. It convinces the lender that the applicant is someone who is responsible by nature and is looking to regain their financial status.

However, if that is not enough, the addition of a cosigner in the application is hard for lenders to ignore. A cosigner provides a guarantee that the monthly repayments will be made, even if the borrower is unable to make them. This is more preferable because collateral brings with it the added chore of turning collateral into cash. So, approval with no collateral is fine, if a cosigner is added.

Other ways to make improvements include taking small unsecured loans out to help clear some debt and so build up the low credit score in that way. This takes some time to be effective, with perhaps 4 or 5 payday loans needed over a period of 6 or 8 months.

Terms to Expect

The terms of an unsecured loan for bad credit can be influential when it comes to seeking approval. Large loans are generally needed to make a true difference to a credit status. Most lenders will have a limit of between $10,000 and $25,000 when approval with no collateral is being sought.

However, once the basic criteria is met - like age, proof of income and an ability to pay - then the application for an unsecured loan is at least on solid ground.

Joycelyn Crawford is an expert in Easy Loans for Bad Credit and Easy Home Loans. Visit her site at EasyLoanForYou.com

Article Source: http://EzineArticles.com/expert/Joycelyn_Crawford/82514

How Large Unsecured Loans for Bad Credit Management Is Possible

Who can be surprised that when it comes to seeking large loans, the chances of getting approval with a bad credit rating are pretty slim. Lenders like to be cautious, but that is not to say that getting large unsecured loans for bad credit management is impossible.

What makes this kind of loan accessible is the strength of an application. This involves not just meeting the basic criteria, but understanding what the lenders actually look out for. If the right boxes are ticked, and the lenders is convinced they can trust the borrower, then it is possible to get loan approval secured fast - though not guaranteed.

Of course, traditional lenders tend to have quite strict lending criteria and approval policies, so something like a $25,000 unsecured loan stands a very poor chance of getting the green light. Online lenders are much more likely to approve these loans, but even with the chances so much improved, applicants must be willing to make some compromises.

How Influential is a Credit History?

Most people believe that the key hurdle to approval of a large unsecured loan for bad credit management is the credit history of an applicant. This is actually not true, with credit histories having some but not a decisive influence in the assessment procedure. The issue comes down to simple mathematics, with a credit score affecting the interest rate to be charged.

For example, the interest rate to be charged when a score is high, like 700, is significantly less than if the score were low, like 620. This rate is, in turn, lower than if the score was very poor, at perhaps 450. Seeing loan approval secured fast depends on either an excellent credit history, or a lender who applies no credit checks.

The interest rate charged is what effectively decides whether a loan is affordable or not. On a $25,000 unsecured loan, the interest could be very high, with as much as $500 required in monthly repayments over 5 years. An excellent credit score will lower the rate, reducing that repayment to $400.

The Significance of the Loan Term

It is often overlooked, but the term of a loan can be the aspect that makes it affordable. It is especially true for large unsecured loans for bad credit borrowers, where income is the sole security that borrowers can offer lenders. Keeping the repayments as low as possible is the surest way of avoiding defaults.

The simple mechanics of the loan term is that the principal owed is spread over a greater number of months. For example, a $10,000 loan over 2 months means $10,000 is divided into 24 shares ($417 each month), but over 60 months the share for each month is much lower ($167). Interest added afterwards decides on the full monthly repayment sum, but the lower that sum is the better the chance of seeing loan approval secured fast.

So, for a $25,000 unsecured loan, the longer the lifetime of the loan, the more likely it is to get an approval. But the compromise is that, with a longer term, the amount of interest paid is much more.

The Significance of the Right Lender

Finally, finding the right lender plays a major part in getting approval on a large unsecured loan for bad credit management purposes. With traditional lenders, like banks, there are strict policies that can often rule applicants out immediately. However, online lenders are more open to those with poor credit scores.

What is more, getting loan approval secured fast is more likely because most online lenders offer no credit check procedures, so a credit score has no influence at all. Even when it comes to large loans, like a $25,000 unsecured loan, there is a willingness to be flexible with repayment schedules etc.

Joycelyn Crawford is an expert in Easy Loans for Bad Credit and Easy Home Loans. Visit her site at EasyLoanForYou.com

Article Source: http://EzineArticles.com/7176853

Unsecured Personal Loans for People With Bad Credit: Tips to Securing $2,000

Meeting financial commitments can sometimes mean the help of a cash injection from time to time. But if a person has a bad credit rating, then sourcing a small loan is a more difficult task. This is where unsecured personal loans for people with bad credit are so valuable.

For example, when an unexpected expense, like a medical bill, arrives or the time to pay school fees arrives, being able to secure a little extra cash can be the difference between avoiding financial hardship and falling straight into it. With fast loan approval, even emergency expenses can be dealt with very quickly.

In such cases, a small unsecured personal loan is required, usually of no more than $2000. Getting approval on these loan applications is possible so long as the necessary criteria are met. But there are some tips that can help in ensuring approval too.

Look to the Internet

It is no secret that the best deals are found online, and it stands for loans as much as for anything else. In fact, the Internet is ideal when seeking unsecured personal loans for people with bad credit since online lenders generally specialize in bad credit financing. These loan deals usually involve lower interest rates than traditional loan deals, and have longer terms to make repayment more affordable.

When it comes to small sums, like $2,000, online lenders often carry out the approval process with no credit checks. So, regardless of how bad a credit history is, approval is based on the income of the applicant. And with credit checks ruled out, a fast loan approval service is on offer too.

Still, it is always worth speaking to familiar banks to see what they have to offer. Unsecured personal loans will always be more expensive than secured loans, but trusting the lender is as important as any other factor in an application.

Know Your Budget

Before submitting a loan application, it is essential that the applicant knows what their budget is and sticks to it. Lenders want to be sure that providing unsecured personal loans for people with bad credit is not going to be a disaster, but they rely on accurate information provided by the applicants.

As tempting as it might be to stretch the application sum to as much as possible, remember that the loan must be repaid. So, the borrower is only making more trouble for himself if he borrows too much. Fast loan approval does not mean a snatch and grab opportunity. A mature attitude has to be taken when taking on any financial agreement.

To this end, consider the specifics of any unsecured personal loan on the table. Study the interest rate and any hidden charges that may be in the small print. Then be conservative in the share of income to be used for repayments (40% max). This is the best way to establish if a loan is affordable or not.

Consider Short Term Loans

It is not always a good idea, but in emergency circumstances it might be the most plausible solution. But as unsecured personal loans for people with bad credit go, a payday loan or other short-term loan package will provide funds quickly.

The only catch with payday loans is that the interest to be repaid can be quite high (as high as 35%) and repayment schedule very short (30 days). So, a $2,000 loan could require a one-off payment of $2,700.

Other short-term loans also provide fast loan approval, but at lower interest rates and a more manageable repayment schedule. A 3-month term, for example could see monthly repayments of $800, while 6 months would mean $400. This unsecured personal loan option is ideal for repaying an emergency loan without breaking the bank.

Sarah Dinkins is a financial advisor who writes about Guaranteed Unsecured Credit Cards and 100% Guaranteed Bad Credit Loans

Article Source: http://EzineArticles.com/7243343

Unsecured Personal Loans: Get Yours Approved in 24 Hours

There is always some uncertainty surrounding loan applications when bad credit scores are a part of the equation. Often it depends on the loan size and type, with a large unsecured personal loan typically hard to get approval on.

But the chances of getting the green light are always improved when a few simple issues are addressed before submitting the application. Not least is choosing the lender, and there is no doubt that an online lender holds the advantage over traditional banks and credit unions.

Between 24-hour loan approval and no credit check approval procedures, it is not difficult to see how. Though, as with all personal loans, it is necessary to meet at least the basic criteria.

Searching for Loan Options

The Internet makes life a lot easier when it comes to finding a great loan deal. This is partly because online lenders provide the best terms for bad credit borrowers, offering unsecured personal loans at the lowest rate of interest and with more flexible repayment schedules.

But it is also because it is easy to search thousands of loan deals at the same time, thanks to comparison sites. So, the task of narrowing the search to the one with the best terms is simplified too. Features like interest rate, loan term and whether 24-hour loan approval is available or not, can be checked quickly.

However, be sure to check the fine print on any offers before signing up to a personal loan agreement. It is better to shortlist the top five according to your needs and then examines them much more closely before deciding on the best one.

Straightforward Application

Traditional lenders have stricter application procedures for unsecured personal loans mostly because of their fear of losing money on bad credit borrowers. However, online lenders have a very different attitude, preferring to make life easier than difficult for prospective borrowers. Offering approvals with no credit checks is part of this policy.

Of course, that does not mean loans are handed out without any assessment of the application. Even with 24-hour loan approval, there is a need to provide proof of income, proof of age and proof of citizenship before the application can progress. Thankfully, a Social Security Number can provide all of that information.

It is also necessary to have a working bank account, as this is the method by which funds will be transferred to the borrower if the personal loan application is successful, as well as the method in which the repayments will be made.

Approval in 24 Hours

Finding a suitable lender is the starting point for the whole application process. Filling out the online form and providing the required information are the second stage. Unsecured personal loans need firm confirmation of income and loan qualification before the lender would even consider giving the approval.

However, as long as all of the necessary information is provided, then 24-hour loan approval is practically assured. The reason for the speed is that everything can be processed extremely quickly via the Internet. In contrast, a traditional lender expects a paper form to be filled out, before the information then read and processed into the system, before the details are checked.

But, everything can be done so swiftly when the personal loan application is received online. And because there is no credit check to go through, approval may be granted in an hour and the funds deposited into the bank account of the borrower within 24 hours.

Hilary Bowman is a Financial Expert who specializes in Loans for People with No Credit and Bad Credit Loans

Article Source: http://EzineArticles.com/7268825

A Personal Guide To Get An Unsecured Personal Loan

Even though it is not hard to get an unsecured personal loan to consolidate your bills, start your new business or for other personal needs, hundreds of people find that they got declined for a loan when the requirements are so easy. Why? Well, it gets narrowed down to the 'Loan Application' When applying for a loan of any kind, there are do's and don'ts that you need to know so your loan application can be reviewed unbiased and allows for an easier approval.

Even though you can get an unsecured loan with less than perfect credit and with no collateral, it can sometimes seem like a difficult and somewhat daunting task to meet the simple and minimal guidelines set by the lender. With less than perfect credit, you are sometimes defined as a 'high-risk borrower' but this does not mean you cannot get a loan. The mistake most borrowers make when applying for a loan, is what they put on their loan application document. This in most cases creates the cause for a 'Declined' loan. The loan applications that does not have the clarity and reasoning as to what the money is needed for, will very rarely stand a chance of being approved. So how should you apply for a loan in the right way so you can secure the necessary approval for the funds you need?

Here Are Some Important Loan Application Guidelines To Keep In Mind.

• Personal Business Loan;most local lenders will automatically denied your application for a business loan if you don't have perfect credit and there are no proven track record of your business. Your application can also get denied if you have less than perfect credit and you have no collateral to secure your loan. So what should you do? In this case, you stand a better chance of applying for an Unsecured Personal Loan where you can get a loan with less than perfect credit and with no collateral needed. The process for this type of loan is easy and approval can be within days.
• Debt Consolidations;while it is true that you cannot borrow your way out of debt, you can reduce your financial stress, lower your monthly bills and save more in your pocket or bank account each month with a debt consolidation loan. Even though these loan requirements are minimal and do not require perfect credit, some applications do get denied. How to get your loan approved? When applying for your loan, make sure you 'clarify' that the money is needed for debt consolidations. There should not be any indication in your application of you wanting to borrow $5,000 with $3,000 to pay off high interest credit cards and $2,000 to go on a cruise with friends. You will need to be specific about your bills consolidation.
• Get A Personal Loan; sometimes a personal loan is just what you need to take care of an un-expected emergencies, repair your automobile, remodel your kitchen or bathroom, or maybe you just need to take care of other personal needs. An unsecured personal loan can take care of these circumstances without the hassle of trying to qualify with less than perfect credit or the need for any collateral. But keep in mind a few things when applying for these loans - Do not beg for the money! Yes, sometimes an application will get declined when it indicates 'desperation' for the loan. This makes you sound like the potential for a higher risk to the lender and will possibly get your loan declined. So clarify your application indicating your cause whether for home improvements, automobile repairs... etc.

Whether you are looking for a loan to consolidate your debts and make lower monthly payments, start your new business, expand your current business or you just need an unsecured loan for your personal needs? You will find a wide variety of loan solutions here to accommodate any credit situation. Learn more here: [http://www.predictableinvestments.com/investments_loans.html]

Article Source: http://ezinearticles.com/expert/Winston_A._Walker/1326833

Prosper - Get An Unsecured Personal Loan Up To $25,000

Are you in need of money but find you just don't have the collateral and maybe the good credit that your local bank require? Then you definitely need to consider an unsecured loan. Here is why - The convenience and stress free hassles of getting these types of loans, makes it so much easier for you to get the money you need whether you are trying to consolidate your debts, repair or even to buy an automobile. Maybe you are thinking of starting your own small business or expand your current one, or perhaps you just need the funds for your personal needs. Regardless of your financial needs whether for business or personal, getting a loan amount of up to $25,000 does not require you to have perfect credit or even to risk your asset in order to get approved.

An unsecured loan provides some of the best alternative solutions to your financial needs because they can help you get the money you need without the headaches and hassles. Because there are no evaluations or major qualification process, your unsecured loan is process much faster than a regular loan. These types of loans can be the keys to opening the financial doors that could even help you to save money by consolidating high interest credit card debts. They can provide vital financial resources for a planned project or even help to resolve those unexpected expenses that comes at a time when you least expect them or even want them to show up.

Here's how it works:

• Your loan request - As a borrower, you post a listing for your loan request and the purpose for your loan. Your listing will then be viewed by various investors whom are people just like you, but with money to lend for your cause.
• Your loan review - Your loan request will be review by these investors who will then combine together to grant you the money you need once you meet their criteria.
• Your loan approval - Once the process is completed, approved and funded, you will make fixed monthly payments each month without having to worry about an increase in your monthly payments.

So with an unsecured personal loan, you can relieve the financial stress and give yourself the extra funds you need to make your life much easier. Another great asset to getting this type of loan is that you don't need to have perfect credit or collateral to qualify. Sure, good credit always makes it easier to get a quicker and higher approval, but it is not a strong requirement. So regardless of your credit status, you could still get the necessary funds you need to consolidate bills, start your business or for almost any purpose.

Easy Approval - So if you need a loan and just don't want to go through the hassles that you are faced with via traditional lending, especially with less than perfect credit and no collateral? An unsecured personal loan is just what you need to take care of an those unexpected emergencies, repair your automobile, remodel your kitchen or bathroom, or just to take care of your personal needs! You can get a fast hassle free approval with a loan amount up to $25,000.

So whether you are looking for a loan to consolidate your debts and make lower monthly payments, start your new business, expand your current business or you just need an unsecured loan for your personal needs? This is how you can get your money without the hassles of traditional lending. Learn more here: http://www.dailyloansolutions.com/index.html

Article Source: http://EzineArticles.com/?expert=Winston_A._Walker

Large Unsecured Personal Loans: Secrets to Securing Approval

It is not easy to find a lender willing to trust bad credit borrowers with a large unsecured personal loan. But while once upon a time, poor credit histories suggested the applicant could not be trusted, today such stigma is gone. All that an applicant needs to do is prove they can make the repayments.

Affordability is the chief concern for lenders, not the reputation of borrowers. This is because, in recent years, so many honest borrowers have seen their credit ratings slump through no fault of their own. There are even lenders willing to give large loan approval with no security.

What has not changed is the fact that there is strict criteria to meet. So, while there is every chance of getting approval on personal loans, it requires a well-presented application to convince lenders to do so. Such an application can be put together with three simple steps.

Know Your Credit Score

Knowing the strength of your own credit score is useful since applicants get to see what it is lenders want to know. When applying for a large unsecured personal loan, the score dictates the interest rate to be charged, so the score has an influence over the affordability of the loan.

A credit score of 450 is extremely low, ensuring an applicant has no chance of getting approval with no security. An excellent score of 700 is far less troublesome. If the score is very low, then to strengthen an application it is necessary to improve the score, which requires effort and pre-planning.

It is possible to improve the credit score with a series of small payday loans over perhaps 5 or 6 months. As each is repaid, the score is raised. If the debt is large, then a single consolidation loan could be used to repay all or part of it. However, it is also a good idea to have the score reviewed before applying for a personal loan.

Apply for a Realistic Sum

Improving your credit score is perfectly fine, but it is equally important to be realistic regarding the application. A large unsecured personal loan is not necessarily a $100,000 loan. In the eyes of a lender, with no security offered, a figure of just $25,000 is a large loan.

Improved credit scores can do nothing for someone seeking a loan that is just too large. Interest rates will be sky high and monthly repayments unaffordable, so getting approval with no security really does become an impossibility.

Working out a conservative budget is an important step in avoiding this situation. And it may be necessary to think outside the box. For example, to secure a personal loan of $25,000, apply for one loan of $15,000 and then, after a period of time when regular repayments have improved the credit score a little, apply for another loan of $10,000.

Choose Your Lender Carefully

Accepting the first loan deal is universally considered a bad idea. It is essential that options are considered before choosing the lender and the deal that is offered. With large unsecured personal loans this is especially true because different lenders will have different policies regarding the risk.

Getting large loan approval with no security can be a challenge, but even if the interest rate charged by a lender is competitive, there may be hidden fees and extremely strict late payment and missed payment penalties that will push loan costs upward. The small print of every deal needs to be checked.

Online lenders tend to provide the best overall deal with personal loans, but it is also necessary to check their reputation with the BBB website or Verify1st site to ensure they can be trusted.

Joycelyn Crawford is an expert in Easy Loans for Bad Credit and Easy Home Loans. Visit her site at EasyLoanForYou.com

Article Source: http://EzineArticles.com/?expert=Joycelyn_Crawford

Understanding Different Types Of Interest Rates On Loans

Loans have widened the scope of making costly purchases for us. The option of paying EMI every month, is a convenient option to manage repayment of loans, along with paying another bills. And the prime factor which determines the rate of interest on a home loan or a personal loan, is the rate of interest, on which you have borrowed the amount.

However, even till today a large number of people do not have enough understanding about interest rates, and only bother to find out when they apply for a loan. So, let us first get to know what kinds of interest rates are provided by banks and lenders.

Fixed Rate: Fixed rates of interest do not change throughout the loan tenure. Also, these are 1% - 2.5% higher than other types of rates. Hence, not all lenders give the option of taking your loan on a fixed rate.

Variable Rates: These rates are also known as floating interest rates. They are directly impacted by the market conditions and therefore ever changing. If the market lending rate has dipped, the EMI amount of the loan borrower would reduce. On the contrary if rates are increased, the EMI amount will also go up accordingly.

Fixed Rates Which Are Reset: This kind of interest rate is fixed for a specific period of time (say 3 to 5 years). After this period, the rate changes for the next set of years.

Fixed-Cum-Floating Rates:

These rates of interest are partially fixed and partially floating. Sometimes, the entire loan amount is split into two parts, and fixed interest rate is charged on one while variable rate is charged on the other. An advantage which the borrower avails in this condition is that he gets to choose the ratio of dividing the loan amount. At other times, in place of loan amount, the tenure is split into two parts, and interest rates are charged in similar fashion on the time period.

Making a choice to select the right interest rates for you could be a bit hard initially. Hence, always remember the following points:

• Compare the current interest rates of your home loan, auto loan, education or personal loan, with the historical rates.

• Analyze if you are comfortable with paying predictable EMIs or unpredictable.

• In case of a home loan, decide your residing period in the house and if you wish to sell it in future.

• Your must have a stable income, in case you are taking a loan with floating interest rate. Because then, your monthly EMI payment could increase or decrease. Great if the amount decreases, but if vice-versa, it should be affordable for you.

If you need to save the interest every month, you can also go for part prepayments, in which you pay for more than three EMIs at once. Today, many banks give you the option of making part prepayments to repay your home loans, education loans and in some cases (not all) personal loan too.

Arwind Sharma is the author of this article and is closely associated with bajajfinserv. Apply for home loan,personal loan, business loan and quickly availed it. Learn and understand more on interest rate on loans before you apply for loan.

Article Source: http://EzineArticles.com/?expert=Arwind_Sharma_Ramesh

Unsecured Loans For The Unemployed: Why No Income Is No Problem

It stands to reason that anyone that is unemployed should believe their opportunities to get loan approval have gone. But this is not actually true, and there are lenders willing to grant unsecured loans for the unemployed, helping them greatly in their battle to take control of their spiraling debts.

Certainly, when it comes to getting loan approval, meeting the set criteria and proving an ability to repay overrides any poor credit rating. The obvious factor that lenders look for is a reliable source of income, but an unemployed applicant is not able to supply such assurance. Yet, even with no job, approval is possible.

The idea behind these unsecured loans is to ensure that unemployed borrowers are given an extended period over which to repay the loan, much in the same way that students are excused from repayments until graduation. But there are other factors to consider.

The Advantages

The unemployed are rarely not interested in working, but are eager to return to employment to resume their lives. In the meantime, managing their debts is a priority, and a highly effect method is to secure loans to deal with immediate debts. So, unsecured loans for the unemployed is a choice option.

The size of the loan available as part of this scheme range from just $1,000 up to $25,000, with qualifying applicants being anyone who can meet the basic criteria but has not got an income to speak of. Meeting the criteria establishes their status as capable borrowers, so getting loan approval becomes possible.

Of course, no credit check is carried out since the employment status overrides the credit history of the applicant. There is also no need to provide collateral, so these unsecured loans are accessible even to those with few assets. And with repayment terms of up to 10 years, a lot of financial pressure is lifted.

The Disadvantages

The main disadvantage is that not all existing debts can be cleared or properly managed. A limit of $25,000 is a large sum, and can certainly make a difference, but more often than not unsecured loans for the unemployed need to be greater to fully deal with the debt. The mortgage, for example, is can hardly be dealt with.

Also, the lender is taking a big risk since there is no guarantee that the applicant will find another job. As a result, the interest charged on the loan is quite high, so that over the lifetime of the loan, a lot of interest is paid. Of course, getting loan approval with no job is a major positive so the compromise is acceptable.

The difference is clear, with a loan of $25,000 repaid over 5 years requiring monthly repayments of $425, but over 10 years that sum falls to $220. The cost of the long-term unsecured loan is higher but the monthly pressure is less.

Where to Get One

The best place to find loan deals these days is online, with lenders offering better terms. Certainly, when seeking an unsecured loan for the unemployed, online lenders charge more competitive interest rates, with online rates also up to 1% below the rate of over-the-counter loans.

When getting loan approval, especially when the applicant has no form of employment, the compromise that must be accepted is at least designed to protect the lenders against losses. From the point of view of the borrower, access to vital funds is the chief factor, so the extra cost is worth it.

These unsecured loans might be costly, but the pressure of managing debts in the absence of a regular income is at least lessened dramatically.

Sarah Dinkins is a financial advisor who writes about Guaranteed Unsecured Credit Cards and 100% Guaranteed Bad Credit Loans

Unsecured Personal Loans With Bad Credit: How To Improve Your Approval Chances

For loan applicants, meeting the basic loan criteria is not a problem, but it is when lenders are considering the application details that approval or rejection is decided. It is at this stage that borrowers seeking unsecured personal loans with bad credit are likely to see their efforts fail.

Many people think that low credit scores are the banana skin, but that is not actually the case. In fact, a major reason for application rejection is that the borrower has not applied for the right loan. So, improving loan approval chances can come down to selecting the right loan available.

There are several options open to people seeking unsecured personal loans, even when they have bad credit histories and mounting debts. It is important to examine these options, and talking to a loan officer at your local bank can help. Here are three of the most common variations available.

1. The Personal Loan Option

Normally, this is the first option that people take because it is the most understood and most common. But when seeking unsecured personal loans with bad credit, there are some positives and negatives to keep in mind. Not least is the fact that the status of unsecured can create problems.

An unsecured loan is one that is applied for without any collateral offered as security to the lender. Collateral gives lenders a source of compensation should the borrower default on the loan, so the risk factor is reduced. Without it, the interest rates are higher to cover the perceived risk lenders accept in granting the loan.

When it comes to improving loan approval chances, it is not a bad idea to provide some collateral. But when that is not possible accepting the higher interest rate while lowering the loan sum sought to the minimum, is the best way to get the green light. In this case, unsecured personal loans are expensive but useful.

2. The Payday Loan Option

A payday loan is the most expensive option, but it is also a more certain option when applying for an unsecured personal loan with bad credit. In fact, if the monthly income of the applicant is sufficient, approval is practically guaranteed.

As its name suggests, a payday loan is really a cash advance on an upcoming paycheck. But the lender ignores completely the credit history of the borrower, so approval is practically assured if the income is larger than the principal, plus the calculated interest. Improving loan approval chances really only comes down to seeking the right loan sum.

But the interest rate charged is very high (30% in some cases) while the repayment term is very short (sometimes just 14 days). Also, the loan limit is quite low, with the maximum sum permitted around $1,500. But with $1,950 needed from one paycheck to clear a $1,500 payday loan at 30%, very little is left for regular monthly expenses. The terms of an unsecured personal loan can be much better.

3. Unsecured Credit Card Option

The third option is not strictly a loan, but it is a way to source extra funds when necessary. While credit cards are known to cause considerable financial strain if not managed properly, they can be the ideal solution when managed well. So, when seeking an unsecured personal loan with bad credit, an unsecured credit card is worth considering.

Card issuers restrict bad credit borrowers to very low credit limits, which means significant debts cannot be dealt with but also narrows the potential debt created when using the card. Often, improving loan approval chances comes down to seeking less, rather than more.

This option is still going to be expensive if spending is not controlled. But, access to funds is available, while the chance to greatly improve credit ratings also exists, making it an ideal alternative to looking for unsecured personal loans with bad credit.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com

$25,000 Unsecured Personal Loans: How to Make Approval More Likely

For bad credit borrowers, the chances of getting the green light on a $25,000 unsecured personal loan is expected to be nil. The loan assessment process is strict, and applicants with poor credit histories are carefully vetted. But with careful preparation, an application can be strong enough to be approved.

The strength of a loan application rests on only a few points: the affordability of the loan; the debt-to-income ratio of the applicant; and the specific purpose of the loan. The problem with seeking large unsecured loans is that lenders fear the funds will be wasted, and not used responsibly.

If the $25,000 is to be used to clear some existing debts, rather than financing a weekend in Las Vegas, then they are more open to the idea of granting loan approval with bad credit. And with some careful planning, the other issues can be addressed too.

Improving Affordability

The first two issues are closely associated, with the affordability of a loan affected by both the interest rate charged and the debt-to-income ratio that exists. When it comes to getting $25,000 unsecured personal loans, especially with bad credit scores, some effort is needed to ensure both are kept in order.

Bad credit borrowers are usually charged higher interest rates because of the perceived greater risk lenders accept. And with large unsecured loans requiring larger monthly repayments sums anyway, the total in repayments can be significant. With the ratio stipulating that a maximum 40% of income be used for debt repayments, the sum often pushes the total figure over the limit.

But both can be improved with either small or large consolidation loans. With these funds debts can be cleared, and with each debt cleared, the credit score improves. This in turn means the interest rate falls. And, with each debt gone, the debt-to-income ratio improves too, making loan approval with bad credit more possible.

Making Realistic Applications

Even with the efforts made to strengthen a loan application, rejection can still be the outcome. Sometimes, the problem is that applicants fail to realize the reality of their position. What on paper seems affordable to them is not convincing enough to lenders. With no security offered, this is especially true with a $25,000 unsecured personal loan.

The best way around this problem is to be realistic with the sum of money sought. For example, if $20,000 is needed and easily affordable, why apply for $25,000? And if $25,000 is needed then, consider splitting the sum into 2 or 3 smaller loan applications - $10,000, $10,000 and $5,000. A large unsecured loan might be rejected, but 3 successive smaller ones are more acceptable.

And remember, with the specific purpose of the loan detailed in the application, the likelihood of unsecured personal loan approval with bad credit is much greater.

Choose Your Lender Wisely

Finally, when seeking a $25,000 unsecured personal loan, a key factor is choosing which lender to apply to. The best terms are available online, and after a search on a comparison site, the best options matching your preferences can be found in seconds.

But there are security risks in getting loans online, and checking the reputation of lenders through either the BBB website, or Verify1st.com, is necessary. For this reason, it may be worth speaking to familiar traditional lenders with the chances of getting a large unsecured loan with acceptable terms high when they already know your background and character.

Of course, it is hard to beat the terms of online lenders, who are more open to personal loan approval with bad credit. But ignoring any option would not be a wise move.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com

Unsecured Personal Loans With Bad Credit: How to Avoid A Nightmare Deal

The economy today still has severe problems, but there is no reduction in the number of people in need of extra funding to just get by. And with most of us with limited collateral to hand, seeking an unsecured personal loan with bad credit is the only option. But is there an affordable loan option to be found?

Actually, the answer to this question is yes, if the right terms from the right private loan lender can be secured - though that is the challenge, especially with so many online lenders being unscrupulous in their dealings with the consumer. Compared to traditional lending institutions, the potential for good deals is greater online, but avoiding the nightmare loan agreement is a challenge.

Of course, there are personal loan options everywhere, from secured loans to unsecured, and depending on the size of the loan required, from short-term to long-term. In all cases, knowing what is attainable is important.

Unsecured Vs Secured Options

Getting an unsecured personal loan with bad credit is more difficult than getting a secured loan, and for good reason. Security, like collateral, means the lender has something to use as compensation if the borrower defaults on the loan.

This means the degree of financial risk the lender faces is lowered, which in turn means approval chances are increased. Private loan lenders need to feel confident of getting their money back, with profit, and after that little else matters.

For bad credit borrowers, finding something that matches the value of the loan can be a problem. For a small personal loan, it may not be a huge issue, but when loans of $10,000 and more are needed, the task is much more difficult.

Advantages of Online Lenders

Even when collateral is found, there is still the issue of which lender to approach. Most of us go to our local bank, but traditional lenders are infamous for their poor terms, especially when seeking unsecured personal loans with bad credit, even if your relationship is good. A more affordable option is to be found online.

Online lenders are generally regarded as experts in bad credit lending, and typically charge lower rates of interest. They benefit from the fact that statistics show bad credit borrowers are less likely to default, since they are usually intent on rebuilding their credit reputation. So, private loan lenders do not face the risk many believe.

Also, since many online lenders approve personal loans up to $10,000 with no credit check, the likelihood of getting an approval on a meaningful loan amount is extremely high, though this is dependent on satisfying important criteria.

The Risks of Online Lenders

However, despite their advantages, there is still every reason to approach online lenders with caution. Getting an unsecured personal loan with bad credit might seem easier, but in the small print there can be hidden fees and charges making the deal much more expensive.

Also, many unscrupulous operators are to be found online, taking advantage of bad credit borrowers in real need of funds. So, be sure to check the reputation of lenders on either the Better Business Bureau website or the Verify1st website. Both can confirm whether a private loan lender is trustworthy or not.

Of course, there are other options when seeking a personal loan, like a family loan or a company loan. These may be more plausible depending on your circumstance, and are worth considering.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com

Unsecured Unemployment Loans: The How and Why Explained

For anyone that has lost a job, the new status of unemployed can be a major blow to the system. Not only that, but it can set alarm bells ringing, with the need to access cash surely closed until a new job is somehow found. Well, with unsecured unemployment loans, there is a way to secure loan funds even without an income.

The idea of getting loan approval without a job does seem strange, especially when no security is required against the money lent. But, the situation is similar to student loans, where the lender is interested in the future employment situation.

However, that is not to say that anyone who is unemployed will qualify for an unemployment loan. There are conditions and criteria that need to be met, and the loan sum is usually kept relatively low.

How Unemployment Loans Work

The basic idea of an unsecured unemployment loan is that people who have been recently made redundant can access much needed funds to keep them above water for a period of time. The fact that there is no source of income is not an immediate problem, as the loans are typically structured to ensure the lowest possible repayment sum.

Besides, the ability to repay can come from other quarters. Redundancy usually comes with a redundancy package, often as much as a years salary, though that depends on the period of time spent in the job. Unemployment benefits and savings are also sources of repayments too. So, granting loan approval without a job is not a foolish decision.

The idea is that cash is forwarded in a lump sum to allow the borrower to get on with life. For example, a $20,000 unemployment loan can cover vital expenditure (mortgage etc) amounting to $1,670 per month for 1 year, but require repayments of just $350 per month over 5 years.

Qualifying for an Unemployment Loan

There are conditions to qualifying for an unsecured unemployment loan, and in the absence of any income, this center around the credit and employment history of the applicant. It is also only open to recently unemployed people, who have lost their jobs within 6 months of applying.

To have a good chance of getting loan approval without a job, an applicant should have a good credit history and be considered a good bet to find a new job relatively quickly. However, bad credit borrowers can qualify if their employment history (meaning their ability to hold down a job) is very good.

A secured unemployment loan can be for any amount of money that the security provided can cover, and often home equity is used to get the highest amount. But when the loan is unsecured, the limit is usually around $20,000 - about enough to cover living expenses for a year.

Opt for an Online Lender

There are many lending institutions who offer loan packages to the unemployed, but not all of them are willing to grant unsecured unemployed loans. It comes down to the risk factor, and the chance that the borrower will not actually find a new job.

But online lenders are much more open to the flexibility required to grant bad credit borrowers loan approval without a job. Their interest rates are usually lower so the unemployment loan is more affordable.

And since everything is done over the Internet, approval is much faster with access to the funds in as little as a few hours.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com

Unsecured Loans With Bad Credit: How To Get Approval Without Collateral

Bad credit borrowers already know that getting approval on a loan is a lot trickier for them that for good credit borrowers. However, it is worth noting that approval is not impossible. In fact, despite the greater risk that exists, some lenders will grant applications for unsecured loans with bad credit.

True, it seems a little too risky for a lender to do so when there is no security provided. But the truth is that granting loan approval with no collateral is fine as long as the applicant has met the necessary criteria. The lender simply restricts the size of the loan, and charges higher interest in compensation for the risk.

In this sense, lenders and borrowers both get what they're looking for, though not with the ideal conditions. Certainly, for bad credit borrowers, the benefits of getting an unsecured loan are several.

How Unsecured Can Work

The benefits are pretty straightforward in fact. While traditional lenders are reluctant to grant approval on an unsecured loan with bad credit, there are some lenders willing to accept the risk. Most importantly, they are willing to do so at relatively competitive terms.

These lenders are usually found on the Internet, where online lenders offer loan deals to those most likely to be turned down by regular banks and financial institutions. They are also recognized experts in bad credit lending, so getting loan approval with no collateral is very likely anyway.

A better chance of approval is a major plus, but other advantages are a faster loan approval process. This is because the process for unsecured loans usually means there is no credit check up. Also, with nothing put up as security, the borrower loses nothing should he default on the loan.

Qualifying for Collateral-Free Loans

Anyone can apply for an unsecured loan, but when applying for an unsecured loan with bad credit, there are certain criteria that lenders insist are met. Of course, the basic ones relating to age (over 18), citizenship (US citizen or legal long-term resident) and employment (full-time gainful employment) are to be expected, but there are other matters too.

For example, having a source of income is fine, but applicants will need to have held the full-time position for at least 6 months prior to the application date. Getting loan approval with no collateral is tricky unless the lender feels confident the repayments will be made without fail.

Another condition is that the applicant has a bank account, and that repayments on the unsecured loan are withdrawn from that account directly every month. This arrangement reduces the chances of defaulting dramatically, thus making approval more likely.

Improving the Approval Chances

Several measures can be taken to greatly improve the chances of getting the green light. For anyone seeking an unsecured loan with bad credit, these also mean lower repayments and more affordable loan terms.

Using a cosigner is one way around the security problem. A cosigner promises to make monthly repayments if the borrower is unable to. This drastically reduces the degree of risk the lender faces, so the interest rate is lower. Technically, this is still approval with no collateral, but it is also security of a type.

The only conditions relating to the cosigner is that he has an excellent credit record and large enough income to cover the unsecured loan repayments, if that becomes necessary.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com