Low Interest Personal Loans – Possible?

Personal loans are nearly universally expected to carry terrible interest rates and ludicrous fees because people almost always think of them as payday loans. But that’s not completely accurate. You can also think about personal loans as signature loans, and those can very often be had at low interest rates.

So let’s talk about what it would take to lock up low interest personal loans. What’s the most predictable qualification for a low interest rate on any loan, personal or otherwise? That’s right, it’s a good credit score. If you want a bank to hand over a chunk of money with based on nothing but a signature and a handshake, it will only be because they can look at your credit history and see that it’s basically immaculate. I’m talking about a 700+ fico score. If you don’t have that taken care of, don’t expect to qualify for a personal loan with low interest.

But it doesn’t end there. The bank wants you to have a good credit score, but there’s something else they want you not to have, which is too much debt. Part of their analysis of you as a borrower is going to be to look at all the monthly payments you’re responsible for and then add the minimum payment that will come with the loan they’re about to give you. If that minimum payment will push you past a certain monthly payment load, no loan for you. I’m actually very glad that lenders have this practice. I know they only do it to protect their bottom line, but it also protects your bottom…line.  Working hard for your money and then watching it all flow right back out due to your high monthly debt service is a recipe for burnout and stress. You don’t need that headache.

So I guess part of the low rate personal loan equation is either not having much other debt, or having an income so high that your monthly debt isn’t a big factor. But I’m guessing that’s not the case with most people looking for some short term financing.

In any case, take good care of your finances. If you can’t get low rate short term loans now, work at it and the day will come. Of course, when that day comes you may not (hopefully) need them anymore.

No Credit Check Unsecured Loans

Anybody who ever applied for any kind of loan would love to have the bank skip the credit check. The whole situation can be very uncomfortable, right? You have to give them all this personal information about yourself, including your social security number (and who feels safe doing that?), and then they click a few buttons on the keyboard…so they can come back and say that because you missed one car payment in 1994 they’re not going to approve you for the loan you really need. I say no thanks. I’d much rather have no credit check unsecured loans.

The great thing about an unsecured loan with no credit check is that a) they’re not going to even bother looking at your credit as part of deciding whether you’re qualified, and b) the loan is unsecured, so you don’t have to provide any form of collateral whatsoever.

Alright, we just have to be real here. If you think you can get a loan with these characteristics you’re a little loopy, and that’s putting it kindly. What you’re essentially saying to the bank is “Give me a loan based on nothing but my good looks and handshake.” You’re asking them to lend you money when you’ve clearly left some other lender with zilch in the past – that’s how your credit got messed up in the first place.

You either don’t want to provide any collateral, or you don’t have any to offer them – so it really comes down to you asking the lender to trust your best intentions and completely ignore your past transgressions. Do you think that’s a fair proposition?

Now, I’m being a little hard on you – the truth is there are loans out there that at least resemble a no credit check unsecured loan, but a better name for them is a bad credit payday loan. And it is possible to get those. I’ll tell you now that you’re not likely to get more than a few hundred dollars through these loans, and you’ll pay handsomely in the form of up front fees and steep (like Everest) interest rates.

If those are things you can handle than these loans are probably what you’re looking for.

Bad Credit Unsecured Personal Loans

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.

Payday Loans with No Credit Check

Short term no loans obtained through payday loan stores and websites have gotten quite a bad rap over the last couple of years, but no one can deny that they fill a certain need in the market for people who need some fast cash and don’t have the income or the credit score that will stand up to much scrutiny. There are still plenty of people who need payday loans with no credit check.

You might wonder how a loan provider can afford to offer no credit check payday loans. Well, they clearly have to make sure their risk is covered, because it’s true that they can’t be lending money without a high expectation of having that money paid back. They cover most of their risk through the use of up front fees the borrower must pay before they walk out the door. So, when the borrower walks into the loan store and asks for a certain amount to be lent, the lender will usually ask them to pay a percentage of the loan up front – out of pocket, not from the proceeds of the loan. That percentage may be anywhere from 8% to 15% of the loan amount.

The lender’s risk equation looks something like this: if they lend 100 people $300, but charge all of those people $30 before they ever walk out of the loan store, that means they’ve lent $300,000 but already received $30,000. So they have $270,000 at risk. They know that a certain percentage of those borrowers will default, but in the end they know that enough people will in fact repay their debts in order to return their money to them and ensure a healthy profit. Some say it’s too healthy a profit, but that’s up for debate. I say it’s a fair transaction given the fact that these borrowers know exactly what contract they’re entering into.

And speaking of you, the borrower, be extremely careful in how you use these loans, because the fact is that a payday loan for $300 could end up costing you more than double that by the time you pay your fees and interest. So don’t fall into the trap of rounding up. If you need $225, don’t borrow $250. If you need $175, don’t borrow $200. It’s that kind of careless behavior that got you into this situation in the first place. Manage your money better and live debt free, without payday loans no credit checks.

Small Personal Loans

Nobody wants to be in a situation where they need personal loans, but the fact is it happens. All these Payday loan operations are in business and profitable because the market obviously exists. Most of the time people are borrowing amounts in the neighborhood of  $300 to $500, but what if you’re only looking for small personal loans?

These smaller short term loans are available; you can borrow as little as $50 or $100, and the fees will be correspondingly small, so that’s a relief. The application and qualification process will be similar to what you’d experience with larger loans: the lender will expect to see proof of income (in the form of recent paystubs or a w2), and they’ll probably run a credit check to make sure you don’t have any major blemishes on your credit history. So what if you have terrible credit?

That’s probably not too big of a deal. If there’s one thing personal loans providers are used to it’s giving people small instant unsecured personal loans for bad credit. The downside is they’re going to make sure they get their money one way or the other – and that means fees. Sure, a $15 fee on a $75 loan may not sound like a lot, but it’s 20%, and you could end up paying interest on top of that.

Before you ever go into a loan store and fill out an application, it’s probably wise to ask yourself a few questions:

Do I really need this loan? Is there any way I could cover this expense without having to borrow this money?

Am I sure I’ll be able to repay the loan? What circumstances put me in this situation? Can I reasonably hope to repay this loan and not have a similar circumstance arise in my life?

It’s crucial that you realize how you got where you are, and do everything possible to avoid being back at the payday loan store three months later applying for another small personal loan with bad credit.

Cheap Unsecured Personal Loans

Most people are going to come up against a situation in their life where they run out of cash before they run out of bills, and when they do they’re going to be looking for some time of personal loan to get them through to their next paycheck. Below I’ll discuss a few types of unsecured and secured personal loans that might be a good fit for your situation.

Bad Credit Signature Loans

Yes – there is such a thing as a loan that doesn’t require collateral but is still available to people who’ve messed up their credit rating in one way or another. Here’s what you’re up against – banks, even payday loan providers, aren’t going to throw money at you just because you need some cash to buy groceries or get the muffler on your car fixed. They’re going to want to see proof that you can repay the loan; which could come in the form of showing them several pay stubs or maybe a reference from your landlord saying how faithful and punctual you are in paying your rent every month. These types of loans are definitely going to come with some fees and a not-so-great interest rate, but you do what you have to do to get by. After taking out and repaying a few of these you might be able to get your credit score to a point where traditional lenders will look at you.

Guaranteed Unsecured Personal Loans

When you’re talking about any type of guaranteed personal loan it usually means two things: first, the person seeking the loan probably messed up his or her credit at some point, which means the only loans available are bad credit loans. Second, guaranteed loans often refer to loans that an organization (such as the government or veterans administration) will back up so the lender can feel a little more at ease about getting their money. Again, with these types of quick personal loans you’re not going to be offered low interest rates or favorable terms in general. After all, your past bad behavior has proven that you’re a risky investment for any lender. Their ability to stay in business depends on how wisely they lend money. The up front fees and high interest they charge on your loan protect them from going through what you want to avoid most – bankruptcy. Recognize that they need to be paid for the risk they’re taking, but while you’re paying them back you’re improving your ability to borrow in the future in a way that’s better for you.

Signature Loans with No Credit Check

There are going to be times when your life circumstances don’t let you go through a long personal loan approval process. In those times fast unsecured personal loans are going to be your best bet. These are the kinds of loans you’d get at your local payday loan store – you walk in, fill out the paperwork, and often you have your personal loan disbursement within just a couple of hours. If you’re in need of emergency cash, these are the best loans for you, although they come at a price. If you don’t want to get one of these in-store or in a bank you can always opt to look into online signature loans; these are ones which you can apply for at the click of a mouse. You might pay anywhere from 5% to 15% of the loan amount in fees, not to mention the fact that you’re going to end up with an interest rate that sneaks up on 30% – which makes even the worst credit cards look appealing. Borrow these loans wisely – they’re for emergencies only.

Unsecured Personal Loans With Bad Credit

Your credit might get to a point where it would be pointless to check your credit anyway – so you might as well approach a lender who offers unsecured loans no credit check. They do exist, but this isn’t exactly the premium lending world. These lenders are willing to lend to give loans to people with very bad credit, but not without covering their risk. The way they manage their risk and maximize their reward is by a) charging you fairly large fees when you take the loan out, and b)making sure the interest rate is in their favor – not yours. If you can handle these conditions then this kind of loan could be a good fit.

Personal Loan Rates

Loans can be used for a varied amount of purposes and it’s important to do your homework when choosing a loan. As you probably know, you’ll have to meet certain conditions and work out certain terms when you apply for most any type of loan. And when you take out a personal loan, it’s no different.

With almost every loan, interest rate is the main concern. Personal loan rates can vary depending on many factors. By getting a lower interest rate it means your monthly payments will be smaller which can be less of a burden for you. It’s important to be aware that low personal loan rates are offered to those who have an excellent or good credit history because those that have good credit pose a lower risk to the lenders. Your credit score is also referred to as your FICO credit score. One thing you can do is to get a copy of your credit report and ensure that it has mentioned your past payments correctly. If your score is lower then you want and lower then lenders want to see there is something you can do. You can make some more timely payments towards any debts in your name and wait for a few months to apply for the loan with your improved rating.

Usually, personal loan rates are lower when you borrow the finances against one of your valued assets like your home or vehicle. It’s advised to borrow less money then the value of the property that you pledged as collateral. If you don’t have anything to offer as collateral, then you can go the route of an unsecured loan that you can get without pledging anything in return. The only downside to this type of loan is that that loan interest rate is generally higher for obvious reasons. However, a borrower who has a perfect credit history can have access to an unsecured personal loan rates that are at a comparatively lower rate.

Apply for rate quotes of the lenders who claim to have the lowest personal loan rates. Compare as many such offer that you can in order to find out which offer has one of the lowest personal loan rates and has the best terms for you in your individual circumstance.

Personal Student Loans

Are you a student finding yourself struggling to make ends meet with all the responsibilities you have between school, homework, bills and other expenses? It’s not uncommon to be able to hold down a full-time job and keep up with your studies at the same time. Although everyone struggles from time to time, there are certain circumstances that come about in which we simply need to have money right now.

Personal student loans are one way that can help you wade through the slim times as a student. One of the most difficult hurdles to getting personal student loans is that you may not have the credit history that is necessary to actually qualify. Do not despair because there are ways for you to qualify. It may require that you have a cosigner or legal guardian sign for the money to ensure that it will be paid back. You may find that your parents can’t cosign for you if they’ve been hit with any financial difficulty in recent years because they might not qualify either. So you’ll need to look into different options. Although it can get discouraging, there are some student loans that are available for people with no credit or low credit scores.

One option for getting a personal student loan is through the government. Typically these loans are only available for college tuition and books, but it may be enough to help you get to a point where you can come up with the money you need to fuel the rest of your expenses. Another option while you’re waiting for approval on the loan, is to get a credit card but make sure that you use it smartly and don’t get yourself into financial trouble. Use it on occasion and make sure that you pay the balance when it’s due and it could actually help you build a good credit history in a short period of time.

Of course a serious situation may arise where you really need a personal loan and if this is the case you may need to go through what is typically called a payday loan. There may be a hang up getting this type of loan if you’re a full-time student seeing as you need to have held a job for a month or more. If you have a job, then there shouldn’t be a problem but the best thing that you can do is to talk to a qualified loan officer to see what they can do for you. You would be surprised what can be accomplished if you really put your mind to it.

Personal Loans UK

Securing a loan is usually an easy and convenient method of getting the funds you require to undertake any needs you might have. There are many different types of loans that are taken out depending on what’s best for the borrower. By far, secured personal loans UK are considerably the best financial assistance you can get, since under the provisions a good sum of money is provided to the borrowers for their varied financial requirements.

As for what purpose a personal loan UK is taken out is dependent on what the borrower need it for. They can be used for various reasons. Some of those reason could be buying a home, buying a new car, establishing an enterprise, pay for a wedding, a holiday or a celebration. But the best use of this type of loan is for debt consolidation. As you can see these personal loans UK can be used for just about anything.

Secured personal loans UK can contain an ample amount of money, since there is collateral involved in securing it. It’s best if the amount of money you borrow be less then the value of the collateral pledged. The range of the repayment period on personal loans UK can vary between five to twenty five years.  However the amount sanctioned by the lending authority under the conditions of these personal loans UK is generally or 3,000 pounds. While on the formal request of the borrowers, the authority is liable to increase the amount to up to 75,000 pounds. What’s better is the APR (annual percentage rate) that is attached to secured personal loans UK is nominal since the lender feels a safer hand offering these personal loans since collateral has been pledged.

Individuals that have bed credit history i.e., CCJs, IVAs, bankrupts, arrears, and defaults can apply for secured personal loans UK without any sort of financial hassle. Whatever loan you need and whatever your credit history it’s important to do your research. Shop around and find the loan with the best interest rate and conditions for you individual circumstance.

Instant Personal Loans

Are you in the market for a quick personal loan? If you are, think instant personal loans, it just might be the answer you’re looking for. An instant personal loan is just what it says, meaning that getting approved for it comes without wasting much time. In fact, you are often on your way within hours. This is mainly because the whole application process for the loan is done by lenders who use the internet as their mode of approval, making it very speedy.

The information that you’ll likely be asked to give includes what you’ll use the loan for, repayment duration, your employment and your residential address. Make sure that you are forthcoming with this information because any discrepancies could cause a delay for approval of the loan.

Instant personal loans provide money in both secured and unsecured options. Usually, the unsecured option is ideal for smaller loan amounts, ranging from $1,000 to $25,000 – some of the most commonly sought are bad credit personal loans 5000. The repayment period for these small unsecured loans is small, ranging from six months to 15 years. You’ll find these loans with higher rates of interest because there is no offering of collateral to back it up. If you choose to go with the secured loan option, which is ideal for homeowners, you can borrow money at a lower interest rate and use your property or home as collateral. These loans range from $5,000 to $75,000 with a repayment period of 5 to 30 years. The loan amount can find its use in various personal purposes like paying for a wedding, home improvements, the purchase of a car, a holiday tour, debt consolidation etc.

What if you have a bad credit history of late payments, arrears, payment defaults and CCJs? It’s OK because the approval of the loan still comes quickly because of the online processing. Even more good news is that you can find the loan at competitive rates due to the competitive loan business.

It’s a good idea to apply for the rate quotes of the lenders who are providing the instant personal loans. Many of these offers may be suitable for your individual circumstance. It’s also smart to look for a deal that provides fewer additional charges aside from the lower rate. Always make sure that you repay the loan without missing any of the installments to insure that your credit history remains in tact. Instant personal loans are a great way for you to get the money you need without having to wait forever!

Secured Personal Loans

When people come up against a cash emergency and they have no where to turn to cover their bills until they get paid again, secured personal loans may be the only solution available to them. There are lots of reasons a person could need this kind of assistance, but whatever it is – you want to make sure you can the money when you need it – even if you have bad credit.

If you have had a bad stretch in your life where you missed some payments or just got behind in general, a bad credit secured personal loan is probably the only viable solution for you. But it’s not all bad – all you will have to do is come up with some type of collateral to secure the lender’s investment, and they’re likely to give you the funds regardless of your past bad behavior with your credit.

You might wonder why banks would even be willing to offer secured personal loans for people with bad credit. Well, for them it’s all about profit. They know if they lend you the money, but secure it with a possession of yours that has resale value, in addition to charging you a fairly high interest rate and possibly some fees – they’re going to end up with a nice profit. Sure, some people won’t pay the money back, but enough will for it to be worth the bank’s risk.

But bad credit secured personal loans do have some advantages. The biggest one is that you’re going to get better rates and terms on secure loans than if they weren’t. After all, by taking one of your possessions and holding it as collateral, the bank is reducing its risk, which means it doesn’t have to charge as high of an interest rate.

The same thing is also true of secured personal loans for bad credit. They’re not going to have to charge you fees nearly as high as if you didn’t offer them any security on their money. Really this presents a better scenario for everyone.

Also, make sure you pit these lenders against each other when considering any loan offer. The competitive marketplace really works in your advantage if you’ll take a little extra time and research the different options available to you.

Personal Loans for People With Bad Credit

What happens when you are tagged as a bad credit borrower? Not only does your financial scenario change completely but your bad credit tag is enough to prevent the creditors from offering you any further financial assistance. This only means that you will no longer be in a position to fulfill your personal demands.

Bad Credit Personal Loans

What are personal loans for bad credit anyway? They are loans that are similar to that of personal loans made available to a good credit borrower with one major difference. That difference is that these loans are meant for applicants who are struggling with major credit problems such as CCJs, defaults, IVA, arrears, late payments or are even on the verge of bankruptcy.

Luckily with the assistance of these loans such things as purchasing a car, financing education, a wedding, or simply going on a trip (and many other things) can be taken care of. But if we’re being honest, the most appropriate use of personal loans with bad credit is to consolidate debts, which will in turn help you retain your financial condition. By making timely repayments of the installments, you have an opportunity to improve your less then desirable credit score. And that is the silver lining.

If you’re looking to borrow money this way, you should know there are basically secured personal loans with bad credit and unsecured personal loans with bad credit. The secured form of the loans are best for those in need of a bigger amount. The catch is in order to procure the loans, the applicant needs to pledge one of their valuable assets as collateral. Then amount borrowed is approved on the basis of equity present in the collateral. This type of secured loan has a long repayment tenure and the interest rates are considerably low.

Bad Credit Personal Loans Lenders

Don’t get discouraged because there are still lenders who do not follow the prescribed rules and formalities. These lenders are actually not that hard to find seeing as they are quite popular these days. Now you can raise the necessary cash.

On the other hand, an unsecured loan may be the way to go. This type of loan offers a limited amount for a short repayment term period. Since it is unsecured, there is no need to pledge any collateral for the approval of the loan. Since this is the case, the interest rate charged is marginally high. It’s good to know that a thorough amount of research of the market will help you obtain a feasible rate on the loan needed.

You can borrow  from traditional lenders as well as from lenders based in the online market. When applying online you will gain access to the best low rate deals. Another bonus of working online is that you can access the loans from any location at any point of time.

Unsecured Personal Loans

Unsecured personal loans can also be referred to as a personal loan and in some cases a tenant loan. Recently it has also been called a secured loan, so in truth it covers any type of loan. Why are these types of loans popular? Because you can get them from your bank, building society or even a specialist lender online.

The amount you can borrow on an unsecured personal loan is usually between $500 to $25,000 with a repayment period of up to 10 years. Since an unsecured loan isn’t tied to anything if you miss a payment it could easily adversely affect your credit history. The downfall to having a bad credit history is you’ll likely find it difficult to obtain credit, get interest free deals or low interest rates.

Be aware that with unsecured personal loans you may be expected to pay an interest rate somewhere between 7 – 20%. This is the reason that it’s smart to shop around. Don’t simply rely on your own bank but do use them for comparison purposes. Places to look include online and a small number of retailers.

Now, another type of loan that requires no collateral is to call them guaranteed bank loans for people with very bad credit. It’s not just people with high fico scores that need to borrow short term cash, so it’s actually very possible to get an unsecured personal loan with poor credit, you just have to know where to look.

Of course, you need to exercise caution before you take on any debt. There are plenty of unethical bad credit unsecured loan companies out there who will lend you the money under false pretenses and then treat you poorly.

Some tips to keep in mind when comparison shopping is to ensure that you are comparing like for like when it comes to interest rates. Beware of marketing and advertising tactics that are there to trick and confuse you. For instance, a lot of lenders with quote the APR as a yearly APR whereas other lenders will quote a monthly APR, which will clearly look to be more competitive.

When repayment is concerned, a bad credit unsecured personal loan can be repaid over a period of ten years although some lenders may offer extended repayment periods if you have a good credit history. Remember there may be some stipulations to this plan as the lender may also decide to charge you a slightly higher interest rate for the extended loan period. So, as always, the best financial advice when it comes to these types of loans is to try and repay them over the shortest period possible.

There may be something called a repayment break attached to the loan which some lenders are now offering in an attempt to get your business. What this means is that normally at the beginning of the loan the lender will give you the option of making your first payment for 3 – 5 months after the loan was given.
Let’s walk through a scenario where a person borrows an unsecured personal loan for poor credit, and then goes through that period of three months without having to make any payments. It’s very possible that this borrower will forget he owes the money, and even if he remembers the debt, the three month grace period gets him accustomed to the little burst of cash, but doesn’t get him accustomed to the resulting payment. When the grace period ends, he hasn’t adjusted his spending habits to ensure that he’s ready to make his payments on time. So you have a borrower who already has bad credit has taken on more debt that he can’t repay. It becomes a vicious cycle of more debt and more missed payments.

Rather than dive recklessly into personal loans for people with terrible credit, why not look into other poor credit unsecured loan options? There are definitely other ways you can go. You’d probably be a lot wiser to borrow whatever money you need from a family member or friend who knows you and trusts your willingness and ability to repay the debt. They might charge you 10% interest or so, but that’s a lot better than paying 30% or more.

What have we learned today? It’s important to remember that the interest rates, repayment periods, and terms attached to unsecured personal loans for poor credit people vary from one lender to the next. Take your time finding the best loan agreements that work for your needs. Compare and shop around to find that deal that will best fit you. Also make sure you know about any penalties or set-up fees that may be applied.