Category: signature loans

Bad Credit Personal Signature Loans

Personal signature loans are typically intended for people who have good credit. When you’re trying to get a loan it’s always wise to put yourself in the lender’s shoes. Let’s say a friend approaches you and says she needs $1,000 to cover her utility bills until she gets her next paycheck. Or maybe she needs the money longer term because she needs a new washer/dryer combo. What will be the very first thing you ask her?

That’s right – “How are you going to pay me back? Can you handle the payments?” And the all important question: “If you end up not being able to keep up with the payments, what can you offer me as security on the loan?” Now, if she’s using the money to buy a washer/dryer you could take those from her and sell them to recoup at least a percentage of your money. But if she’s borrowing the money to pay bills, there’s nothing to repossess. If she tells you she doesn’t have the greatest fico score, you’re looking at giving her a bad credit unsecured personal loan. Does the thought of lending her the money make you nervous? If so, you’re starting to see how picky the banks can be when they’re looking at offering a loan to a person with no collateral other than her good name.

The bottom line is personal signature loans for people with bad credit are going to be hard to find. You’re not offering the lender any tangible security on their loan; and you’re not offering them mathematical security in the form of a good credit history and high Fico score. Their only recourse is to attempt to ruin your life by crushing you with high fees per dollar borrowed, very short repayment periods (which you won’t meet, meaning you’ll incur more fees), and worst of all – this kind of loan is typically not going to do your credit score much good.

So while you may have no alternative to seeking instant approval unsecured loans online right now, you have to take a step back and evaluate what got you here in the first place. I mean, even credit cards would be a far superior borrowing vehicle. but if you’ve really trashed your credit, I’m guessing you’ve had credit cards before and got yourself into trouble there, too.

Do what you have to do today. But…get a secured credit card (one that DOES report to the credit agencies), put a small balance on it, and make your payments on time. Slowly but surely your credit will improve and you won’t have to go down this nasty personal loans path many more times.

Unsecured Signature Loans

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.


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.

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.