Getting an Unsecured Loan Even With Bad Credit
Because of the global economic crisis, more and more people nowadays are in desperate need for cash. However, since many face financial problems, many find themselves unable to obtain a loan from the bank or other lending firms because of bad credit history. If you are one of the many who are in dire need of money and have bad credit rating, all is not lost. Although the bank may not be able to give you your needed loan, there are certain specialist lenders that can offer you a loan regardless of your credit history.
An unsecured loan is one that does not require collateral. Lenders offering unsecured loans face a higher risk because they will not be able to get anything in case you default your payment. Because of this, unsecured loans often have higher interest rates compared to a secured loan. However, this can be the best route to take for people who do not have a property to use as collateral and in need of cash.
So what are the unsecured loans that you can apply for that can provide you with fast cash?
One option is by getting unsecured personal loans. Many lenders face high risks with this kind of loan since they will have to burden a great loss when you will not be able to make payment. Because of this, getting this kind of loan can take some time. However, an unsecured personal loan can allow a borrower to get £ 7,000 – 15,000 to be paid over a period of time.
Another option that you can take is getting a payday loan. This type of loan is one of the fastest approved loan products. Most companies often approved application for a payday loan within twenty fours after. Lenders offering this kind of loan do not require that you have a good credit history, but you do need to have source of income in order to get an approval for this kind of loan. This can be in the form of your salary from your job, weekly or monthly pension, social security, or other forms of stable income. This type of loan allows borrowers to get around £ 100 – 1000. A payday loan often requires that you pay your loan and the interest rate within 7 days or on your next payday.
Unsecured credit cards can be another option that you can for when looking to apply for an unsecured loan. There are a lot of companies nowadays that offers unsecured credit cards to people having poor credit ratings. Having this kind of loan can allow you to borrow a sufficient amount that you can budget with. However, there are certain draw backs if you do apply for unsecured credit cards. One is the high interest rates that accompany the use of these credit cards which can often reach as high as 18%. Another is the hidden fees that may come along within the fine print.
Although unsecured loans are available for people who have bad credit ratings, it is still important to keep in mind that lenders exist to make money. This would mean that not all people may be approved in getting an unsecured loan for bad credits. However, there are ways that you may be able to increases your chances of getting approved, such as getting a job or finding a stable source of income.
Willie Rhoades is a finance analyst who enjoys writing about UK loans and unsecured loans bad credit as well as other related topics.