Sabtu, 21 November 2009


Diposting oleh Nuy di 01.26

Many times I am asked whether or not UNSECURED LOANS for bad credit really exist and how they work exactly. That is what we are going to cover today. An unsecured loan for bad credit explained will allow you to make a decision as to exactly what you’ll have to do to quality for such a loan and whether or not you want the loan in the first place. Yes, they do exist and you can likely get one. However, there are a few things to keep in mind about bad credit unsecured loans before you go and apply for them. We’ll cover the pitfalls and benefits of such a loan so that you can make an informed decision about whether or not you want one.

Why do companies offer loans with no collateral to people who have bad credit? Are they crazy? Well, no they aren’t. They just have certain guidelines that they follow as to who to offer such a loan to which give them a good success rate on repayment. If you can meet their stipulations, even if you have had past credit problems, and they don’t consider you a risk then they will offer you a loan. Also, since they offer interest rates that aren’t competitive in the market of those with good credit, they make quite a bit of money from these unsecured loans with bad credit.

An unsecured loan means that you don’t have to use anything to guarantee the loan other than your signature, or as it is sometimes put, your “good name”. Unsecured loans are a great way to build or rebuild your credit, because you have nothing at stake except more bad credit if you don’t pay. Therefore, if you do pay, you are much of a less risk next time someone is considering offering you a loan, since you paid the first one without any collateral at stake. A bad credit unsecured loan can do wonders to your credit score if you pay it on time and pay it off within the term of the loan.

When you apply for this type of loan you will be asked to fill out your personal information such as name, address, social security number, etc. You’ll also be asked what amount of loan that you are looking for and may offered a choice of payments. Be careful that the interest rate isn’t extravagant. The normal interest rate for an unsecured loan if you have good credit is about 7-8 percent and if you can get an interest rate around there then you’ll pay a lot less. Many companies have a sliding scale and base the interest rate upon how great of a credit risk you are.

The chances of you getting approved for this type of unsecured loan depend upon a few factors. Your income and job stability is one of those. If you have had the same job for a number of years and you have a decent income then your chances of getting the loan increases. Also, the availability of money to pay off the loan, or the debt-to-income ratio. If you have two cars that you are paying for, and an extremely high rent or mortgage then you will not be approved as often as someone who has a low mortgage or rent payment and isn’t paying on other things. Just remember that if you don’t try you wont’ know if you are approved or not.

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Silakan ngoceh.. ^.^
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