Instant Approval Unsecured Loans

by Mack Bartlett

If the approval of the loan is instant, it can mean only one thing: a computer is doing the deciding. And if a computer is doing the deciding it means the approval (or decline of the loan) is completely quantitative, not qualitative. What does that mean? It means the computer doesn’t care about your circumstances, your personality, your hard luck story or your 100% commitment to repay. All the computer cares about is whether the numbers work in the bank’s favor. What numbers?

Your Credit Score and History

There is no way you’re going to get an unsecured loan (being defined as a loan that doesn’t require collateral) without a good credit score. When I say good I mean north of 680. And not only does your Fico score have to be high, you have to have a nearly spotless payment history on your other loans during the previous 24 months – at least. So when the computer pulls your credit report it can’t see any “30 day late” or “60 day late” notices.

Your Outstanding Debts

How may credit lines do you have open? Are they revolving credit or secured credit? Secured or unsecured? Meaning, are they credit cards, car loans, student loans, payday loans, a mortgage – what? It’s true that you want a certain number of credit lines active on your credit report in order to qualify for unsecured loans, but if you have too many you can start to look like a credit risk. And just so you know – department store and gas station credit cards don’t help your credit in the least, so you might as well cancel them.

In an instant approval loan situation, you need to make sure you have a few long-standing credit lines open, and ideally they’ll have some activity on them in the last 24 months that proves you’re an active, but very responsible borrower.

If you’ve got the credit score and history, and if you’re total monthly debt payments aren’t overwhelming (in the bank’s eyes), there’s a good chance you can get instant decision unsecured personal loans. But if you don’t have those things in order, you’re going to have to go the more traditional instant personal loans route – I’m talking about payday loans. The ugliest loans in the world, with their egregious interest and fee structures.

Avoid Traditional “Unsecured” Loans if Possible

The problem with traditional payday loans is they will literally approve anyone as long as the person has a pulse, a direct deposit paycheck stub, and an active checking account. That means the burden is  really on the borrower to decide whether it’s a good idea to borrow that money. And take it from me – it’s a terrible idea.  If you can possible avoid taking on that kind of debt, please do.