Unsecured Bad Credit Loans

Bad Credit Loan OptionsAre you tired of being turned down by lenders when you need money badly? Loans seem an easy option to get off your financial crunch, but procuring the help is not always easy. Hefty down payments, low loan-to-income ratios and healthy credit requirements are the conditions which intimidate most. To acquire a loan from a standard financial organization is often impossible till you are equipped with the perquisites. At least this is the case for secured loans. There is another option available known as unsecured loans, which are much easier to borrow but at a higher cost.

Secured Vs. Unsecured Loans

The main distinction between the secured and the unsecured bad credit loans is this: you can acquire the secured loans by mortgaging your personal belongings and assets, or get unsecured loans without providing any type of compensation. The applicant need not offer any collateral or security to get the loan. Though secured loans usually offer a better value, they are only lent to those with a good credit history. So for those with low credit scores needing a loan immediately, unsecured loans are the way to go.

Things to Look Out For

With the ease of procuring the loan, the unsecured options come with few shortcomings. Such as the applicant must be above 18 years of age and there are much higher interest rates. Also the annual short term loan rate can go up to 2500 per cent and the loan amount is subjected to a maximum scale of $2000 issued for three months. That total amount to be repaid has to be equal to or less than 20 per cent of your monthly income.

Finding Unsecured Loans

If your situation complies with the requirements, then your unsecured bad credit loan is just a click away. All you need to do is search the Internet for loan providers, then fill out an online application form mentioning the amount of money you want on loan. The website usually finds for you an appropriate lender from their lender database and initiates a negotiation on your behalf based on your credit condition. The money is soon transferred to your credit card when the deal is established.

If you are afraid of giving your poor credit condition and personal information to the online loan companies, be assured that your financial details are kept confidential and restricted to the borrowers, the company, and the lender. Nothing is promoted publicly and nothing will be done that could violate your privacy in any way.


Unsecured Loan OptionsConsidering the present economic scenario, bad credit is becoming more common than good credit. Thus the finding and applying for unsecured loans are the best option for those without collateral, regardless of the reason. In fact these loans can often be the more feasible option as it is unlike to jeopardize your assets in case you miss a repayment, whereas with a secured loan, your assets are likely to be confiscated if you are unable to repay the loan within the required time period.