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Unsecured Bad Credit Loans

Unsecured Bad Credit Loans are Possible Now

In the earlier days when someone confronted any urgent money requirement, he would first and foremost think of selling his land or property. People who were landless would regularly save some money and use it to sail through a rough patch. Those who neither had any property nor any savings would have to face the repercussions of the money crisis. Time has changed now and so have the options. In today’s scenario, people have the option of taking loans for their urgent needs. There are many banks and financial institutions that are offering loans to the borrowers. These loans are given after checking their credentials by the lender. If your past records are good and you have no bad debt record, you can get a loan by just providing a few documents to the bank. These banks charge an interest on the amount borrowed which you pay in easy installments over a period of time.

 

If we now talk of a scenario where you have come up with an urgent need of money and you cannot wait for the lengthy process of the banks to get over, you start looking for alternatives. One such alternative is instant cash loans or payday loans. These loans are known for their quick service. Here you just need to fill up an application form and within a few hours; you can easily get your loan amount.

The next roadblock for you comes if you have a bad credit. With the economy witnessing a downfall, there have been many instances where people have taken loans but have not been able to pay it back; some have even tried to repay their loans but have done it partially. All these cases title you as a defaulter and you form a bad credit history for yourself in this process. If in case you fall in such a category, you are as it is not going to get any loans from a bank. Banks check the history of the borrowers and reject the application of people who have ever had a bad credit record.

 

Unsecured loans a boon

 

Now, what to do if you have a bad credit history and you are still in need of money? Unsecured bad credit loans have been introduced for people like you. This loan scheme provides solution to people with a poor record of defaults, arrears, foreclosure or bankruptcy. The lenders have devised such unsecured loan schemes keeping in mind the inability of people to provide with collateral. With an unsecured loan you need not worry about seizing of your collateral if you are unable to repay. This unsecured loan scheme also doesn’t require any check on the past credit records of the borrower. This makes it doubly beneficial for borrowers falling under this category and nullifies the general belief that securing loans with no kind of collateral is almost impossible when bad credit is part of the question. Lenders often believe that the reason for bad credit might not always be the fault of the borrower, so getting a loan approval without any security is not out rightly rejected as a policy. All that you need to do is to tick on the boxes correctly and provide proper information in the application form.

 

 

Required criteria to avail an unsecured bad credit loan

An unsecured bad credit loan requires a few criteria to be met by the applicant. They are:

 

  • You should be a US citizen.

  • You should be minimum18 years old.

  • You should be working with a legal company and drawing a superior income.

  • You should have a valid bank account which must be active.

  • You should have a residence proof and a social contact number.

 

If you fulfil all the above criteria, then you are eligible to get the cash loan up to 1500 dollars or more as per your need.

What is the importance of your salary in a bad credit loan?

You should know that income plays a vital role in seeking an unsecured personal loan; although it is not the only requisite that needs to be fulfilled. For example if you are drawing a very high monthly income, it does not mean that you will get a loan approval quickly or you would get a huge amount of personal loan. You ought to fulfill each and every criteria mentioned above to enjoy an unsecured bad credit loan. If in case you already have taken a personal loan that needs to be repaid, the amount that you want to now take as a loan should not be more than what you would be able to repay from the salary that you are drawing. Therefore, your loan approval actually depends on the debt to income ratio. The debt to income ratio is 40: 60. This means that only 40% of your income is what is allowed to be used to repay your debts. This ratio ensures that you have enough left from your income to spend on your regular monthly expenses and to pay your bills.

Keeping your application realistic helps

You should try to keep your application as realistic as possible in order to expedite your loan approval. For example if you need a sum of 1000 dollars, you should actually apply for that much amount only. What people do is that they apply for a larger amount than what is required and hence stand a lesser chance to get the loan approval. In other words, it is always easier to repay a small loan. Therefore it is advised to take small loans and not burden yourself with the repayment troubles or set another bad credit record.

It is therefore rightly said that if you want to restore your credit reputation, you should go for an unsecured bad credit loan which will help you achieve your objective. So it will help if you plan your loan amount well and reap the benefits in the long run.

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