Category: Unsecured Loans

Instant Approval Unsecured Loans

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.

Instant Decision Unsecured Personal Loans

When you’re trying to get a personal loan, “instant” can mean a couple different things. It could mean you fill out a web form with all your relevant data, click “submit” or “approve me!” and you get an immediate message saying you’re either approved for the loan, or not.

On the other hand, you might consider a 24 hour approval period to be essentially instant, especially consider most loans have approval times measured in days or weeks. So whether you’re looking to be approved instantaneously or sometime tomorrow, you need to understand which aspects of your application make the biggest difference to getting approved for instant decision unsecured personal loans.

What signals are lenders looking for to identify you as “not too risky?”

The first – and biggest – factor is your credit score. There’s no way around it. If you want to borrow money fast you’re going to have to show you’ve been a responsible borrower in the past. Remember, you’re asking them to give you up anywhere between $1,000 and $5,000 in a matter of minutes (or maybe hours). For the lender to feel comfortable with that decision they’re going to have to see glaring proof that the loan will be a good use of their money. Glaring proof in the form of a high Fico score and and a history of making your loan payments on time.

How much does your income matter?

Your income matters quite a bit. Maybe not as much as your credit status, but it’s still a factor because the lender has to see that your income has room for the new payment you’re going to have if they give you this loan. Typically called your “Debt to Income” ratio (or DTI), the lender is going to add the new payment this loan will create to your other monthly debt obligations and calculate whether or not the new payment will overload you.

When you’re trying to qualify for a home loan the standard DTI numbers are typically around 33% of your net income and about 42% of your gross income. The preferred DTI isn’t as well-known for unsecured loans, but it’s logical to assume they’ll be slightly more conservative given the fact that they have nothing to repossess if you don’t make your payments.

If you have terrible credit and a lot of other debt….

Instant personal loans may not be for you. Well, that is unless you want to go the payday loan route. If you’re truly desperate for some cash you can get really fast loans for up to $1,000. But these are “borrower beware” situations. The fees and interest rates on these loans make them a horrible decision for pretty much everyone. Not the recommended path, in my opinion.

Guaranteed Loans with No Credit Check

There’s only one reason you don’t want lenders checking your credit as part of a loan application – your credit stinks. Really bad credit guarantees really expensive loans.

So if you want guaranteed loans no credit check, you’d better be prepared for the consequences. It’s not an exaggeration to say that taking on this kind of debt could take a bad financial situation and turn into a total personal finance nightmare.

I’m convinced that the majority of people who take out any sort of guaranteed approval personal loan have no idea what it could do to them long term. The interest rates are so high that you can end up paying back two or three times the original loan amount within just a few months. This isn’t a house we’re talking about. It’s an unsecured loan you’re probably borrowing to pay some utility or medical bills.

Even if you are able to pay back the loan on time, this kind of financing has been proved to be habit forming. I read a government report that said the majority of short-term borrowers (ie payday loan situations) use this kidn of financing multiple times.

So let’s say you take out a $1,000 guaranteed approval loan that costs $100 in fees and interest. You pay it back in two weeks. You wouldn’t be out of the ordinary if you did this five times in the course of a year. That’s $500 in interest and fees paid on…nothing! You didn’t borrow money for any kind of appreciating asset. You borrowed money to keep your lights. Yes, you need lights, but they shouldn’t be paid for with a triple-digit interest loan.

How to Avoid this Type of Loan

It’s simple, really. The only time people borrow money this way is when they’ve run out of cash and have pressing bills. The simple solution is to have an emergency fund in the bank. Yes, conventional wisdom say says you should have six months worth of expenses in the bank, but that’s a ludicrous number for most people.

If you maintained a small personal slush fund of even $1,000 you’d probably save yourself from ever having to borrow awful payday loans again.

It won’t be easy to build up your $1,000 reserves, but if you take a long term view you can get there. Work a few hours of over-time. Do some odd jobs for friends and family. You will be amazed how much better you sleep at night with a little rainy day fund in the bank.

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.


‘How Can I Reduce My Debt?’ Get Some Answers

There’s almost no stress that weighs more heavily on a person’s mind than the worry caused by excessive debt. It’s an interesting thing to observe what debt does to a person’s psyche – it crushes their creativity, nearly eliminates their ability to set goals and dream about a better future, and it can even damage a person’s physical health. What it all comes down to is that debt is bondage; it’s a form of self-inflicted slavery from which everyone who’s in it wants to escape. Don’t worry – if you’re sitting there saying “Yes, but I have no idea how to reduce my debt,” there’s hope. It’s not going to be an easy path, but you can absolutely get there.

First we should talk about the traditional methods for getting rid of debt. One of the most popular in the world is called the snowball method, and it boils down to attacking one piece of debt at a time until you’ve eliminated all of it. For example, let’s say you’ve got two credit cards, a car payment, and your mortgage payment. One credit card has a balance of $10,000 and the other has a balance of $5,000. You owe $12,000 on the car and you have a remaining balance of $250,000 on your home. If you approach this process the right way you can end up paying it all off within 7 years or so, and live debt free for the rest of your life.

You’ll start with the smallest debt – the $5,000 credit card balance. Dig into your financial situation and find an extra $100 or so per month. Apply that $100 per month to your credit card balance, and combine with your monthly minimum payment. Your total payment will probably be in the neighborhood of $200 or $250. It will take nearly two years, but you’ll be rid of that credit card balance. When you’re finished, take the entire payment you’ve been making to that credit card, combine it with the monthly minimum payment you owe on the next credit card, and you’ll pay it off a lot more quickly. Continue with this process on the car and your house, and the next thing you know (a few years later), you’ll be debt free and loving life.

The snowball method is one of the most famous and popular solutions for people saying “I want to know how to reduce my credit card debt.” If you discipline yourself to find the extra money in your monthly budget, apply it aggressively to one debt at a time, and stick with the plan for a few short years, you’ll enjoy total debt freedom for the very first time. I promise you nothing could ever feel better than knowing that you owe nothing to no one. Good luck, and hang in there.

A $5,000 Loan You Can Actually Qualify For

Since late 2008 it’s been a pretty tough proposition to qualify for any loan – whether you’re trying to buy a house, a car, new furniture, and even if you’re just trying to borrow a little cash to grease the wheels of your family’s finances for a week or two. But guess what? For the right kind of borrower, bad credit personal loans 5000 are not only possible, it’s probable. Banks got very very tight with their funds over the last year or so, but now that the nation seems to think it’s in some sort of recovery they’re starting to let the money flow a little more. Of course, they’re not handing it out to just anybody, especially not if you’re looking for a multi-thousand dollar loan.

Getting a $5000 loan no credit check, or any kind of loan for that matter, starts with your credit score. I hate to break to all of you whose credit took a total nosedive in the last year or so – banks don’t want to lend money to people whose credit scores don’t start with a ’7′ these days. But if your credit score is above 700, then a good credit $5,000 dollar loan is well within your reach.

Here are a few other criteria you’ll need to meet before you can borrow this kind of money: a steady income you can prove with real documents – that means check stubs or tax returns and a debt to income ratio that doesn’t make the bank queasy. They’re pretty adamant these days about people not borrowing money if the additional payment is going to throw them into financial turmoil, cause them to miss mortgage payments and every other payment, and thus lose the lending bank – and quite a few other banks – big sums of money.

We should also make it very clear right here, right now, that there really isn’t such a thing as $5,000 loans with no credit check. Well, I guess there is one loan of that nature – it’s called hitting up your Uncle Rick and/or your cousin Skippy for the money. If they’re not giving it to you, you can rest assured no bank will touch you either.

In the end, this kind of loan is like any other – it will come easiest to people with good credit and high incomes – in other words people who don’t generally need to borrow money. Your goal, then, is to become a person that doesn’t need to borrow money. As soon as you accomplish this you’ll have banks falling over themselves to give you any loan you want.

Getting a Guaranteed $5,000 Loan with no Credit Check

Trying to get $5000 dollar personal loans with no credit check is, to say the least, ambitious. I guess I’d have to add ‘optimistic.’ But, we shouldn’t say it’s impossible, because of course nothing is impossible in this great nation.  I guess the first thing to discuss is why you might be looking for such a loan at all.

Since we’re actually talking about several thousand dollars here, you’re not the typical internet searcher hoping to find some small personal loan to make it to your next paycheck. If a person actually needs to borrow $5,000 on the quick it’s more likely to cover a mortgage payment, an unexpected medical emergency, or possibly a huge car repair, although that may not make sense – after all if the repair is going to be that much money it probably makes more sense to just buy a new car. So we know you need a healthy chunk of change here, the next question is who’s going to give it to you.

Your first option for borrowing up to $5,000 dollar loan with no credit check at all would be your friends and your family. Seriously. I know you’re trying to avoid having anyone look at your fico score, which probably means it’s terrible right? Well, if your credit score is really bad you might have to rely on those people who know you best to lend you the money. Of course, the fact that they know you best could be a pretty big obstacle couldn’t it? I hope you’ve shown your family and friends that under that 500 fico score is a person ready to repay every penny of the money they lend.

5000 Loan No Credit Check

But let’s be real. Even if you have a cousin, buddy, or co-worker who HAS $5,000 liquid for lending, what are the chances they’ll give it to you? Unless you have a serious hard luck story about why you need the money, I’m guessing the chances are slim to none.  So the harsh reality is you’re going to have to turn to either the internet or your local bank if you want to get that money. And neither of those fine institutions is going to cough up one cent without checking your credit. Sorry to have to break it to you.

My advice would be to talk to your local credit union first, especially if you have a checking account there. You can explain your situation to them, ask them to look at your history of deposits, and maybe you’ve even borrowed there before. All these things could contribute to their willingness to give you the loan.  Not to say they’re going to be handing out check bad credit $5,000 personal loans with no credit check – I highly doubt they will. But if you can tell your story the right way, you just might get them to lend you the money you need to resolve your cash emergency.

Unsecured Loans from Banks for People with Bad Credit

Every day thousands of Americans find themselves a little short of cash, and a little “long” on bills. It’s frustrating, discouraging, and embarrassing when you can’t make your bills despite your best intentions and your best efforts. If you’re not in a position to borrow from friends, family, or credit cards, you might end up having to use unsecured personal loans from banks. It’s not an ideal option due to the notoriously high fees charged and interest charged on these kinds of loans, but you have to do what you have to do.

Now, the ideal scenario would be that you’d you borrow from a bank as opposed to an online lender. I know how convenient the online loan providers are, but that convenience comes at a high price. If you borrow from a website and then renew that loan several times you’ll look back in shock and horror at the cash you’ve wasted. Borrowing from any of these fly by night lending websites (other than those few that are credible – such as LendingTree) really puts you at a huge financial risk. That’s why it’s so much safer to borrow guaranteed loans no credit check for people with bad credit directly from banks in your locale.

Sure, I understand that it can be pretty humiliating to physically walk into the nearest branch of your bank, sit down with a member services representative, and explain that you need to borrow a few hundred bucks to get you through to your next paycheck. Keep a few things in mind that should help you feel less embarrassed. One, you’re by no stretch of the imagination the first person to need this kind of loan. I bet if you walk out your front door and survey the houses around yours you’d find that at least one of your close neighbors has been in the very position you’re in now. It might even be that neighbor who you thought had it all put together in his life. The fact is almost everyone has had to borrow cash in a crunch. And hey, if you really can’t stand to walk into your bank branch, check out your options with Lending Tree bad credit. It’s a reputable site with quite a few personal loan options.

Second, remind yourself how much better off you are getting instant decision unsecured personal loans with bad credit from your own bank instead of some faceless website whose headquarters are hundreds or thousands of miles away. Your bank – where you have a checking and savings account, and possibly a track record of responsible borrowing, will treat you much better than you could hope for with an online lender.

Finally, there’s something to be said for the psychological effect of having to sit in front of another human being and explain your need for cash. It won’t be pleasant, and that’s a good thing. After all, the more painful you can make this experience, the less likely you are to let yourself get in this position again. Be careful with unsecured loans no credit check, make your payments on time, and start saving more money so you don’t need short term unsecured loans from banks again in the future.

Poor Credit Unsecured Loans – The Most Common Variety

I think I can offer people out there with bad credit some hope when it comes to getting poor credit unsecured loans. You might be hunting for the loan you need, worried that you won’t be able to get qualified because you’ve really hurt your credit during the last few years.

The reality is that most poor credit unsecured loans are a type of payday loan, and those don’t require any credit at all. Everything I’ve read and researched lately tells me that these lenders who give unsecured poor credit loans are only looking for a few key criteria:

a. Are you employed full-time? Or at least do you have income in excess of $1,000 to $1,500 per month? I’ve found that these lenders aren’t typically concerned with where the money comes from, whether it be income from employment, unemployment, or even social security income. They just don’t want to lend you the money if you don’t have an obvious means of paying it back.

b. Do you have an open bank account, and does the bank allow direct deposits and automatic withdrawals? This is partly an insurance policy for the lender, and partly for convenience in their processes. Many of these lenders operate on the internet, and they don’t want to have to be dealing with paper checks and snail mail, etc. Once you qualify they want to send you the money straight away. That’s why they’re able to approve you at 3pm one day and have the money in your account the following morning.

They need the direct withdrawal system in place so they can automatically deduct your payments from your account without having to invoice you or send you a statement via snail mail. They will email you a statement after they’ve made the withdrawal, but it’s just standard practice to set up an auto pay system to pay these loans back. That’s really in your best interest as well.

If you can meet these simple qualifications, you’re really not going to have a problem getting an unsecured loan with poor credit. Just be sure to use them responsibly and keep enough money in your account to keep the payments current and get the loan paid back on time with no extensions or renewals. That’s where they really get you.

Unsecured Personal Loans for People with Bad Credit

It’s a sick feeling to see your bank account go to zero when you still have plenty of month and plenty of bills left. When I was getting my first business started I had that experience plenty of times, and I hated it. Fortunately I could rely on my credit cards to get my through during those times, but I know many people who read this won’t be in a similar situation. For many of you, unsecured personal loans with bad credit will be the only real option.

At the same time, I don’t want to make it seem like getting a bad credit unsecured personal loan is the end of the world. It might be exactly what you need to put food on the table, make some emergency repairs to your car, or buy your son or daughter some clothes they really need for their latest sporting event or school activity.

The only reason anyone gets upset about these kinds of loans is that there’s a real stigma associated with debt, and especially debt that comes with steep interest rates, as an unsecured bad credit personal loan will. Even I’m a little judgmental of people who need these loans at times, because I really hate the idea that through some lack of personal discipline or planning you’d have to pay triple-digit interest plus fees just to make your bills work for the month. But I do realize that there are times that people just have an awful string of unlucky events in their life which no amount of preplanning would have prevented.

For those situations it’s actually fortunate that people can borrow these short term loans. I’d guess that many people who do use them only end up having to go through the process once, and the feeling of paying such exorbitant interest and fees would be enough to keep them from going through it again.

Just so you’re clear on the process, an unsecured personal loan – with bad credit – is going to require certain things from you such as:

  • proof of a job you’ve held steadily for several months.
  • proof that you earn at least $1,000 to $2,000 per month at that job.
  • an open, active bank account.
  • direct deposit of your paychecks to that bank account.

If each of those criteria are in place, getting your loan approved for as much as a few hundred or even a thousand shouldn’t be out of the question. I hope you’re able to take care of whatever circumstances created the need for this loan, and I hope you don’t find yourself needing one again.

Qualifying for a Guaranteed Unsecured Personal Loan

The process for getting a guaranteed unsecured personal loan isn’t really all that complicated. It goes something like this:

1. Have a pulse (because almost anybody with a pulse can get one).

2. Be willing to pay high interest rates and high fees (how else are they going to protect their loan without securing it with collateral?).

3. Fill out a quick form online, in a payday loan store, or over the phone, giving all your relevant personal facts (including your social security number).

4. Show some proof of income.

5. Deposit the money in your bank account.

And that really is about it if you want a guaranteed loans for bad credit with no fee, which is a huge mouthful by the way.

Now, the real question is can you afford to be borrowing money like this, and what got you into this situation in the first place?

I know most of us think that your average seeker of unsecured loans no credit check is a semi-scummy low income type, but that’s a completely unfair generalization. I’m sure that every day everybody from soccer moms to surgeons find themselves at the counter of a payday loan operation asking for a short term loan just to get them through to their next paycheck.

What about credit score?

Usually, guaranteed loans for bad credit no fees are intended for people who’ve had some problems in their borrowing history, whether that means late payments, judgments, bankruptcy, or whatever. People with better credit typically have access to more traditional – more appealing – financing tools, like credit cards.

And it really all comes down to money management. If you’re so short on cash that you have to pay outrageous fees and interest rates, you need to go back over the last six months or so of your financial life and ask the question “What got me here?” Be honest with yourself so you can make sure this instant guaranteed personal loan is your last.

Unsecured Loans for Poor Credit

Every door in the world of borrowing and finance doesn’t close to you just because you have bad credit. In fact, I’d guess that a high percentage of loans – maybe even 30% to 40% of loans across the board – are given to people that most of the credit world would call ‘credit challenged.’ You have all kinds of loans specifically geared toward bad credit, including home loans car loans, credit cards…you even have unsecured loans for bad credit.

Now, that’s not to say it’s easy to get unsecured loans no credit check. It’s actually going to be pretty tough. Put yourself in the shoes of the lender, and think about what kind of person you actually want to lend money to.

As a banker, you’re looking for somebody to who’s highly likely to pay the money back. Now, given the fact that you don’t know the people who are walking into your lending institution on a daily basis personally, all you can do is work from the most common source of information on a person’s track record – their credit score. But in the case of unsecured loans with poor credit, you don’t even really get to use that. Folks looking for these kinds of loans look bad on paper.

The whole problem is that the big banks employ huge teams of statisticians who build massive actuarial tables, and the job of those tables is to say “given this person’s credit score, how likely are they to repay a (for example) $1500 loan?”

For a bad credit borrower like you, those actuarial tables say “he’s not very likely to make his payments on time, if at all.”

So how is the banker going to lend you the money? He has to do something to make sure his overall lending practices stay profitable, so the only way he can give you an unsecured loan for poor credit is to change what those tables say, and he does that through high interest rates and fees.

See, what they do is look at the repayment patterns of all borrowers of approximately your credit standing (aka not so great) and they look at what percentage of the time they bail out on the debt. Once they have a pretty good idea of the default rate, they raise the interest to the point that the interest paid by those who do make their payments more than covers the lost money on those people who flake. Make sense?

So, if you do happen to qualify for bad credit personal signature loans, you’re going to be offsetting the costs of other people’s unwillingness to pay their debts. It’s not ideal, but I guess you do what you have to.

Low Interest Unsecured Loans

The definition of an unsecured loan is a loan where no collateral is required as security for the lender. There are kinds of unsecured loans out there, including credit cards, signature loans, and even certain kids of personal loans. The trick is that low interest unsecured signature loans are hard to come by unless you meet a pretty specific set of criteria.

The first criteria you’ll have to meet if you want to get an unsecured loan with low interest is a good credit score. I know you’re used to seeing a thousand marketing messages a day that say you’re credit doesn’t matter and ‘everyone qualifies!’ but that’s just not reality.

If you walk into the average bank or credit union and ask for a loan or a line of credit that doesn’t require any collateral, their first move will be to look at your credit report. If they’re going to hand over hundreds or thousands of dollars with nothing guaranteeing their money except your signature, they’re going to want to see that you have a basically spotless credit history.

And not only that, they’re going to look at your total indebtedness. Lenders have statistical tables that tell them what happens to the default rate when a borrower’s monthly payment to monthly income ratio passes a certain percentage. If you’re anywhere close to that percentage you don’t have much chance of getting an unsecured with a low interest rate, or any interest rate.

There’s a reason banks tend to be so profitable – they’re very cold and calculated about how they handle their loanable funds. If you don’t meet the profile they want, no loan for you. And that’s regardless of a pretty face, or a charming smile, or a promise of “I swear I’ll make my payments on time.”

The fact that they act this way is probably in everyone’s best interest. After all, they’re using years and years of statistical data to decide what a borrower can handle. You’re using nothing but your skewed view of yourself and your emotional attachment to whatever you’re hoping to buy. It’s a case of the bank knowing what’s better for you than you do, and you should just trust the system.

At the same time, if you do happen to qualify for instant decision unsecured personal loans, use it wisely and make your payments on time! The more consistently and intelligently you use credit, the easier it will be to get the bankers to trust you. Comes in real handy when you want to do fun things like buy a new car or your very first home.

Unsecured Loans with No Credit Check

I think there are times when a person gets a little stressed due to a personal cash shortage, and due to that stress starts to lose a little of their ability to reason. Such is the case with folks who are looking for unsecured loans with no credit check. Yes, I realize that between 2002 and 2007 (give or take) the entire lending world seems to have lost its mind and started throwing mortgage-sized amounts of money at anyone with a pulse. I think an unfortunate side effect has been that people who have absolutely no business borrowing money have gotten the idea that not only can they borrow money, they can do so without having the lender investigate their ability to repay and without providing the lender with a shred of security.

Folks, this just isn’t very reasonable. From the time you borrowed five bucks from your big brother to go to McDonald’s as kids you learned that a lender wants to have a reasonable expectation that he or she is going to be paid back. In your big brother’s case he happened to live with you and if you didn’t pay up he could thump you (or maybe just have your parents pay him back out of your allowance). In any case, lenders have to check your credit or have some form of security so they know that they’re probably going to be repaid. It’s common sense.

Now, just because I think it’s going to be very hard for you to get no credit check instant unsecured personal loans, doesn’t mean you can’t get any loan at all. You could very well get a secured loan with no credit check, where you actually give the lender some form of collateral they’d be able to sell if you happened to disappear forever with their money. You might also be able to find an unsecured loan with a credit check. After all, they don’t mind lending money without collateral as long as they can get a good look at your credit history and see that you have a track record of making your payments.

So, be reasonable. If you need to borrow some money, do so with the lender in mind as well. If they want to stay in business they need to be careful with their money, and that means either checking your credit or securing some collateral before giving you a loan.

Unsecured Loans for Bad Credit

I’ve been hanging around the world of finance and loans now for a while – everything from mortgages to car loans to credit cards. Then in the last ten years or so I see this explosion of personal loans with all their names and variations – unsecured loans for bad credit, payday loans, etc etc. Because of the jobs I’ve had I’m definitely not opposed to the different financing tools; I’m not some anti-debt zealot kook if you know what I mean (not to say that I think people should be in debt – I just recognize that the instruments of finance are fairly important to our economy).

But I just can’t seem to stomach these bad credit unsecured loans – or payday loans, or whatever they’re called. I can’t imagine a single circumstance where it’s a good idea for a person to borrow money this way, although I know what the owners of these corner payday loan stores would say:

1. Payday loans save people who are in truly tight spots, whether they’re facing unexpected car repairs, a medical emergency, a travel emergency (ie a family member out of state being injured, etc), home repairs and whatnot.

2. These guaranteed loans no credit check are not meant to be long term financing tools, and they’re not meant to be used by the same people over an over.

3. Unsecured bad credit loans simply fill a hole in the market, allowing consumers to borrow money much the same way banks borrow from each other when they run short of cash.

Each of these rationalizations should be demolished individually:

1. First of all, every one of those circumstances should be taken care of by having even a modest emergency fund on hand. If a person can operate their personal finances so close to the edge of being broke all the time – that’s still proof they manage their finances! In other words – if you can be just this side of broke all the time, you can change your habits slightly to keep an extra $500 in a savings account to take care of the emergencies mentioned above.

2. Everyone who has spent even ten minutes in the marketing world knows that your biggest source of business is almost always your repeat customers. Consumers are very habitual by nature. The single act of using one of these unsecured loans with bad credit guarantees that a certain percentage of people will use them again. You will not find a single payday loan provider who doesn’t make some effort to keep in touch with his customers so he can lend to them again in the future.

3. This is just ridiculous. Huge financial institutions do many things that individuals shouldn’t be doing. I’ll refer back to #1 and say that all you need to do in life to reduce your financial stress by an order of magnitude is scrape together and maintain a small emergency fund.

And the end of the day, it’s almost criminal that we allow people to borrow money at rates that would end up being 300% to 500% if we let people carry them out for longer terms. I’d strongly encourage all of you reading this to be a much more careful steward over your money – however little you have – so you can sleep better at night and enjoy more peace of mind.

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.