No Credit Check Signature Loans

Applying for any kind of loan becomes a bit of a chess match doesn’t it? You and the lender sit across the table from each other – you’re looking to get as much money as possible while sharing as little information and paying as little interest as possible. The lender wants to lend money – as much money as they profitably can. They just want to make sure all that money gets paid back. So whether you want a small signature loan with no credit check or a full blown $5000 loan no credit check, you better know how to put the lender at ease about your ability to repay.

Do you realize you’re asking quite a bit of the lender? You’re saying you want to borrow hundreds or thousands of dollars a) with no collateral or security on the money they’re risking with the loan, and b) you’re hoping they won’t want to take a close look at your credit history and track record of making timely payments on previous debts.

Here’s the challenge: you wouldn’t be seeking unsecured loans no credit check – signature or otherwise – unless you had something to hide in your past borrowing behavior. That’s where things get a little sticky. You tell the lender you’re hoping to secure a signature loan without a credit check, he immediately jumps to the conclusion (and probably rightfully so) that you’re actually seeking a bad credit signature loan. And that may not be a loan his bank is interested in giving.

Here’s the best advice I can give you. There’s one thing you might be able to use to get a lender to offer you a personal signature loan without credit check: a huge pay stub. Actually, a series of large pay stubs. All a bank cares about is recovering the money it lends out, plus a reasonable interest rate. If you can show them you’ve got income that far exceeds the payment that will result from the loan they give you, they MIGHT be willing to let you go without digging into your credit history.

Getting a bank to approve guaranteed signature loans is going to be tough sale because they’re only going to consider the amount of money you make as it relates to all your debt payments, not just the payment associated with the loan they’re about to give you. So you may be back to square one.

Unless…you’re willing to borrow a standard, run of the mill payday loan. All most payday loan lenders require is a pulse, a bank account with direct deposit, and proof of income. But are you really sure you want to go down the path of borrowing payday loans? It’s an awfully slippery slope.

Finding High Interest Loans for People with Bad Credit

The interest rate on any loan is obviously determined by a variety of factors, but you should realize that your interest rate is ultimately a reflection of how risky lenders consider you. In other words, they’re going to charge you interest based on their evaluation of how likely you are to a) make your payments on time, and b) make all your payments until the entire loan has been repaid. The more likely they think you are to make payments late, or not make them at all – the higher the rate they’re going to charge you on the money you’re being lent.

With all that understood, you can see why high interest loans for people with bad credit exist. It’s not that banks and lenders won’t lend to people whose credit is in bad shape; it’s just that those loans are going to come with much steeper rates. There are a few different kinds of instant decision unsecured personal loans with high interest rates for bad credit.

Guaranteed Personal Loans with High Interest Rates

Guaranteed loans typically come in one of two varieties. The first kind of guaranteed loan is one where there’s no real qualification process. Basically if you have a bank account and a steady income (which gets directly deposited), you can get one of these loans. The other kind of guaranteed loan is one where a friend, family member, or community organization guarantees the repayment of the loan on your behalf. By doing this they’re vouching for you as a person, letting the lender know you’re going to make all your payments in spite of the fact that you haven’t behaved very well with your credit in the past. The lender doesn’t really care about whether you’re going to make your payments because your co-signer has guaranteed the loan.

High Interest Unsecured Loans for Bad Credit

Getting unsecured loans when you have bad credit is going to be tough. With no security on the loan (collateral, on other words), the bank is fully exposed to the risk of non-repayment. The only way they can reduce that risk is by charging up front fees on your loan as well as an extremely high interest rate. Essentially we’re talking about payday loans, one of the most abused and hated personal financing tools on the market. Effective interest rates on these loans can run into the triple digits because people don’t typically pay them off on schedule, which means the lender keeps re-setting the interest schedule. These loans, if misused, can ruin a person’s finances and set them back years in trying to rebuild their credit.

It is crucial that everyone who ever borrows money think very carefully about what they’re doing. It doesn’t matter whether you’re getting low interest loans with good credit or high interest loans with awful credit – all reckless borrowing can wreck your life, cause you to lose sleep at night, and damage your relationships with those closest to you. Learn to budget your money; avoid debt whenever possible, and put yourself on a path to financial peace of mind.