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Getting Unsecured Personal Loans With Bad Credit: No Mystery to Approval

Having a low credit score is not the debilitating factor that so many people think it is when applying for unsecured personal loans with bad credit. There is more to it than a low score, with other factors that play a key role in the decision to approve or reject a loan application.

Perhaps the most significant indication of this fact is the availability of loan approvals with no credit checks. When lenders offer such a deal it underlines the fact that a credit score is not the most important information used in assessing an application. Most important factors include the debt-to-income ratio, which is usually the deciding factor.

The reason that bad credit is not the power that it is commonly thought to be is that it does not accurately reflect the ability (or not) to repay a loan. As such, they can only offer an indication. So, when seeking large unsecured personal loans, it is always possible to prepare an application first – thus improving the chances of approval.

The Important Criteria

Anyone seeking to get approval on unsecured personal loans with bad credit face satisfying an initial set of requirements or criteria before they can be considered for the loan. Luckily, the criteria are not particularly difficult to satisfy at all, with age, citizenship and income the three key aspects.

Of course, the residency status relates to the nationality of the applicant, with those who are not US citizens or at least long-term residents, large risks to lenders. There is always the chance they might return to their countries of origin. Of course, securing approval with no credit checks makes the whole process a little simpler, but nothing is guaranteed.

Credit checks relate to the lender checking out the credit history of the applicant to properly assess the threat of loan default. But for unsecured personal loans, other factors provide a more accurate assessment of the worthiness of the investment. For example, the debt-to-income ratio for one.

What is the Debt-to-Income Ratio?

Focusing attention on the credit score is not the right option. Far more important when seeking approval on unsecured personal loans with bad credit is the debt-to-income ratio, which is a measure of how affordable the loan repayments would be for the applicant. In the end, this is the concrete information that lenders look for.

This is because even an applicant with good credit scores and a large monthly income can seen their application rejected. It would be natural to think such applicants are certain for approval with no credit checks, but by looking at the amount of existing debt, the lender might see that repayments are not actually assured.

The reason is simply down to the amount of existing debts is too high when compared with the income of the application, making sure the debt-to-income ratio is low. Simply put, the ratio prevents a borrower from overextending themselves. The set 40:60 standard means no more than 40% of the income can be used to repay unsecured personal loans.

Know Your Credit Rating

Preparing a strong application for an unsecured personal loan with bad credit is dependent on knowing exactly how the credit score has been formed. This knowledge is important because it can help to develop a strategy. Efforts may best be focused on building up credits score through taking on some small loans to help clear parts of the existing debt.

Getting approval with no credit checks is a luxury, but by identifying the areas that need improvement the chances are enhanced. But it is also possible that the credit score is inaccurate. Getting a review can result in a score improvement too, and worth the effort is the unsecured personal loan is made all the more affordable as a result.

How Do I Secure a Personal Loan If I Have Very Poor Credit? 5 Tips

Personal loans are kind of the holy grail of loans. What could be better than a loan that is easy to get, for which you do not have to put up any collateral, and for which you do not have to explain to anyone how you are planning on using the cash?

Unlike mortgage, auto, and boat loans, personal loans are a pretty good deal all around. Of course, you will have to pay a higher interest rate for a personal loan than you would if you were going to take out a loan to buy a home or a car.

But, the bright side is that, if you pay back the loan within a few months or years, the total amount in interest you pay does not have to be all that much.

The trouble that a lot of folks run into when considering applying for this type of loan is the concern about their credit score. After all, you may be wondering, “How do I secure a personal loan if I have very poor credit?” This is a legitimate question. If you are not putting anything up as collateral, how can the lender know that you are good for it?

Here are 5 tips that can help you get the personal loan you need, even if you have bad credit:

1. Fish where the fish are:

There is an old saying among sportsmen and outdoors types: “Fish where the fish are.” This is simple, commonsense advice that you would think everybody would just naturally know. But, believe it or not, there are plenty of fishermen out there who continue to fish in places where there literally are no fish anywhere to be found.

Similarly, if you have been looking for a loan in all the wrong places, it is no wonder that you may be feeling discouraged about your chances for getting funded, given your poor FICO (credit) score and all. Know where to look for your loan and that is half the battle.

2. See out “bad credit personal loan lenders”:

Start your search by doing an online search for “bad credit personal loan lenders.” Also, try consulting reputable online resources about where to find such a lender. Make a list of at least 3 such lenders.

3. Come to the conversation armed with knowledge about your credit score:

Make sure that you approach any conversation you start with these lenders as a knowledgeable person. This means, for starters, that you have researched your credit score ahead of time.

4. Get at least 3-5 loan offers:

Now, start applying for loans. Remember, even though you are fishing in the right “pond” of lenders, it still helps to cast your line into the water multiple times. Meaning: be sure to keep applying until you get at least 3 or more offers. Multiple offers means a better chance of landing that low interest rate you deserve.

5. Have your bank account information ready:

Hint: as you call around or apply online, have your bank account information – including the routing number and account number – nearby. You will need to supply this to the lenders so that they can fund your account.

Follow these 5 tips for securing a personal loan even if you have very poor credit.

Easily Get a $10,000 Personal Loan, Even With Bad Credit

Getting a personal loan these days isn’t easy and especially for those with bad credit, the prospect of finding a lender willing to give upwards of $10,000 can seem nearly impossible. However, finding a personal loan is not as difficult as it may seem even if the borrower has bad credit. The following five options provide an alternative to a traditional bank when looking for a bad credit personal loan.

Get a $10,000 Personal Loan from a Licensed Lender

There are many lenders out there who actually focus their work on helping get people bad credit loans. These people advertise their services in newspapers, phonebooks and often the internet. This loan will require a basic background check, however. Also, note that unlike traditional banks or credit unions, bad credit lenders generally charge a very high interest rate due to the risk involved in working with so many clients with bad credit. However, if you have no other choice, the high interest is worth it.

Get a $10,000 Personal Loan from a Cash Advance or Payday Lender

Another option for finding this kind of loan comes through a cash advance or payday lender. Again, using this method will require a background check which will generally include a social security number, employment information, bank account numbers and address. It will also carry a very high interest rate. One benefit of using these methods, however, is a quick turnaround. Often these loans are made within a day or two.

Get a $10,000 Personal Loan from Your House

Owning a home is one of the greatest investments that anyone can make because it increases one’s borrowing ability. Even if you have bad credit, you can work out a personal loan by using your home’s equity if you offer up the house as collateral. This is a very popular form of lending and many banks and other institutions will be competing to offer a $10,000 personal loan through your home’s equity.

Get a $10,000 Personal Loan from Your Job

Another really good (and underused) option for securing a $10,000 bad credit loan comes by way of your employer or employee credit union. By tapping your boss as a source, you bypass the need for employment or credit check and often will be able to arrange a payment plan that deducts a certain amount out of every paycheck. Employee credit unions operate in much the same manner. You can still arrange for your loan payments to come straight from your check and your interest rates may be lower by virtue of your job. Also, because these bad credit loans are secured through your job, they are more likely to go through.

Get a $10,000 Personal Loan from your Family or Friends

Sometimes the most obvious sources for money are literally staring you in the face. Getting a loan from a friend or relative means you won’t need a credit check, proof of employment, sometimes there is no interest, and generally a lot less hassle. Friends and family are far more apt to consider the circumstances under which the loan is being taken and will generally listen and work through the problem with you. If you are able to secure a loan from someone close to you, be certain to arrange a way to pay them back. It is a good idea to pay even a small interest fee as well.

Achieving a $10,000 Personal Loan with Bad Credit

If your reasons for seeking this loan are genuine, there is a way to find $10,000 loan with bad credit and there are many avenues through which to achieve it. Also, you must remember that this is serious and that any money you borrow needs to be paid back and often at a very high interest rate. Ultimately, however, anyone can find a personal loan for $10,000 even with bad credit.