Bad Credit Unsecured Personal Loans

by Mack Bartlett

Running out of money before you run out of month is a very stressful thing to have happen in your life. We’ve all sat and watched TV commercials for payday loans and thought judgmentally “that will never be me.” But…then your car breaks down the same week your kid breaks his arm at school the same week rent is due…and next thing you know you’re online looking for bad credit unsecured personal loans.

And it’s not a great feeling, but you’re just doing what you have to do for your family to get by. For those of you who don’t know, an unsecured personal loan for people with bad credit is very similar to a payday loan in a few ways:

1. It doesn’t require any collateral.

2. People with no credit or less than perfect credit can apply and have decent hopes of getting approved.

3. The loans are meant to have very short terms – usually less than one month and often just a week or so.

One semi-myth is that you can get instant unsecured personal loans. Sorry, I don’t think that’s going to happen for you. If the loan is unsecured, that means the lender is completely exposed to the risk of you disappearing without making any of your payments, let alone the full balance. Yes, they can protect themselves to a certain degree by charging you a healthy fee before your loan gets disbursed, but that only covers them so much. They’re going to want to check your credit just to see how much of  a risk they’re really taking.

I hate to say it, but people with good credit will always be at an advantage over people with wrecked credit. If you have excellent credit you might be able to get $25000 personal loans, but if your credit is terrible you won’t even get a fraction of that amount. Take some steps to improve your credit. Ironically, the steps you’ll have to go through to improve your credit will also improve your overall financial situation. I’m talking about doing things like looking for ways to make extra money, pay off old bad debts, save more, and set up your bill and loan payments on your bank’s bill pay program. If you go through those processes it will be hard for you not to see your checking account balance stay higher and your stress level stay lower.

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