Yes, unsecured loans for bad credit risks are readily available. You can obtain unsecured loans pretty easily. But do you really want to? Below is an exploration of the various types of unsecured loans that are available today. We will see the advantages and disadvantages of each of these types of loans and then look at potential alternative financing options.
What Are Unsecured Loans For Bad Credit Risks?
Unsecured loans, sometimes referred to as payday loans or signature loans, are usually short-term financial obligations. They have short repayment schedules are (as a rule) tend to have very high interest rate charges. The high rates are usually due to the fact that most of the borrowers have less than optimal credit scores and due to the fact that these loans are not backed by any collateral. Thus the name, unsecured loans for bad credit.
Where Can I Get An Unsecured Loan?
Bad credit, unsecured personal loans are really easy to get. There are numerous websites and an enormous array of retail shops across the United States and elsewhere in the world that will let you get cash quickly. In fact, according to an article in the Wall St. Journal, there are well over 20,000 retail outlets in the USA alone, which offer unsecured loans for bad credit risks.
How Much Can You Borrow With Unsecured Loans?
You can borrow as little as $500, or as much as $1500 without having to put up any collateral to secure the loan. You can get the money quickly. Oftentimes, you should be able to get cash for unsecured loans for bad credit risks on the very next business day – sometimes, depending on the lender, you might be able to get cash the same day.
How Long Do You Have To Repay These Payday Loans For Bad Credit Risks?
Depending upon the lender that you use, the loan is due to be repaid quickly. Sometimes you will need to repay the loan on your very next payday (which is why these bad credit loans have been coined as payday loans.) Other times, again, depending upon which lender you end up working with, you might be able to delay the repayment of your unsecured loans for bad credit for a few months. There are various lending networks that can help you get cash now. These lending networks can help you to find loans that offer you loans with short-term repayments. You are usually given 14 – 90 days to repay your loan. Usually the amount of time you are given to repay your loan is determined based upon several factors, not the least of which is your credit score.
Car Loans For Bad Credit Risks
Usually people who are searching for cash loans for bad credit are having a difficult time trying to make ends meet. They have typically overextended themselves and are therefore forced to try to get one of these signature loans. People who want to buy a new or used vehicle are often looking to finance their new car or truck. Along with personal loans, there are car loans for bad credit risks as well. Essentially these loans are just like any other car loan, the biggest differences are the terms of the loan.
Auto loans for bad credit risks tend to have considerably higher interest rates than people who have good credit would normally have to pay. You goal should be to have a better credit score. Having a better credit score will afford you the opportunity to get better terms on subsequent loans. Therefore, obtaining auto loans for bad credit risks can serve two purposes. Firstly, it can get you the car you want and (provided that you make your payments in a timely manner) it could work to get you a better credit score, thus (hopefully) allowing you to get conventional collateral loans instead of unsecured loans for bad credit risks.
It’s not surprising to see more and more people looking for used car loans. Sales of used cars has been on the rise of late. Most of those sales have been for smaller, more fuel efficient vehicles. Auto loans for bad credit risks (or for those with good credit) will have considerably higher interest rates for used cars than for new cars. If you’re in the market for a new set of wheels, you might think that you will only a candidate for used car loans. Bad credit risks tend to think that way. You might be surprised to find that you might qualify for a new car loan. Give it a shot before committing to a used car. You might find that you will get a better interest rate on that loan. The lower interest rate combined with the fact that used car shops are selling smaller fuel efficient cars at a premium might just result in only a small difference in your monthly payments.
Student Loans For Bad Credit Risks
People who are looking for student loans really ought to consider government backed financing and scholarships before looking at any other financing options. Check with the credit union that you or your parents might belong to. You are likely to find better deals on student signature loans at the credit union than you would find elsewhere. Some student loans can be thought of as unsecured loans for bad credit risks – similar to payday loans. However, if you have good credit or if you have not made a lot of money, but have been paying your bills on time (and therefore have a good credit score), you should be able to get financing this way. However, if you have exhausted all other options, and your credit score is less than it could be, then you might need to look for student loans for bad credit risks.
Go to any search engine and enter the phrase student loans for bad credit. There you will find a great many different websites that offer these types of loans. Again, as with most any other financing options for people with poor credit, student loans for bad credit risks will likely have higher rates of interest than would be available for those people in a better financial situation.
Debt Consolidation Loans For Bad Credit Risks
It is really important to get your financial house in order. Once you have a good credit score, you will find that it is not only easier to secure financing, you will be able to do so with better terms. So how do you improve your financial situation? Here’s a suggestion which might surprise you, do not consider debt consolidation loans. Bad credit risks tend to look for these types of loans to resolve their fiscal issues. However debt consolidation loans for bad credit risks have their own set of problems. For one, as with payday loan lenders, the companies that offer debt consolidation loans are often not really trying to be your advocate. This is not to make a blanket statement here. Not all of these companies are problematic.
There are many organizations that offer high quality debt consolidation loans for bad credit risks. These loans are offered at lower interest rates and with reasonable repayment terms allowing you to get back on your financial feet gracefully. However, it is tough to wade through which lenders are looking to really help you and which are just looking to offer you loans that aren’t going to improve your financial situation all that much. Again, our suggestion, just steer clear of the deb consolidation loans. Bad credit problems can be solved other ways.
Charting A New Course With Unsecured Loans For Bad Credit Risks
The best suggestion that we can offer you is to try to avoid unsecured signature loans and just try to improve your financial situation. The easiest way to do this is to spend less. If you are spending more than your net (take home) pay, then you need to make a change in your lifestyle. Even if you are just spending everything you earn, you are spending too much. You need to save for a rainy day. With unemployment being as high as it’s been, many people today can appreciate the need for a financial nest egg.
So instead of looking for more unsecured loans for bad credit risks, take stock of your situation. Decrease you expenses. Stop eating out as often as you do. If you are renting an apartment, consider looking for a new apartment for less rent. If you own a home and have a mortgage, consider trying to refinance your home at a lower interest rate. Stop buying new clothes all the time. If you need new clothes, consider shopping in a second hand store.
Unsecured loans for bad credit risks are short term solutions.
These types of loans are usually associated with high interest rates and very short repayment schedules. Before looking for unsecured loans, consider your financial situation carefully. See if there’s anything that you might be able to do otherwise to repair your finances before considering one of those unsecured loans for bad credit risks.
- Charge you late fees
- Send your account to a collection agency
- Report your information to a consumer reporting agency, which may negatively affect your credit score
- Offer to renew, extend or refinance your loan, which may cause you to incur additional fees, charges and interest