Unsecured Signature Loans

by Anita Vasquez

Good credit is an asset. You already know it makes home and auto ownership possible, but you may not have considered the fact that your high fico score can bail you out in an emergency. See, the only way you’re going to get unsecured signature loans is with a good credit score and a well-established credit history.

The amount you can borrow, of course, depends on more than your credit score. You could have a perfect 850 Fico and lenders still won’t give you an unsecured signature loan for two reasons: inadequate income and/or excessive debt.

A loan is always extended based on the most basic assumption: your ability to make timely payments. Lenders need to know the new payment created when they give you this loan won’t be the proverbial straw that broke the camel’s back.

First, they’ll look at all your outstanding debts. They’ll weigh your total current payments plus the payment you’d have on the new loan, weight it against your verifiable income, and decide whether you can still afford the additional debt.

Of course, if you have very little debt and a relatively big income, you should have a clear path to a bigger loan.

Be careful. Often the fast track from being a good credit borrower to a terrible credit borrower is taking out guaranteed loans no credit check in amounts you don’t need just because the lender is willing to give them. Interest is a powerful, terrifying financial tool. Get yourself out of the mindset that a loan is fine just because the bank says you can afford the payment.

Develop a mindset of debt avoidance and a habit of frugality and saving. You can’t go wrong.

Can I Get Unsecured Signature Loans with Bad Credit?

Well, no. I guess I can’t say no without qualifying it. I should have said if you have terrible credit the only signature loans you might get are instant decision unsecured personal loans. That’s right – a payday loan with all the trimmings: very short repayment terms (two to three weeks) and crazy fees (often up to $10 per hundred borrowed).

You DO NOT want these loans. If your credit is bad please do yourself a favor and get some kind of secured debt to help you rebuild your credit. You literally cannot afford to borrow many of these payday-type loans. They’ll ruin your life.


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