Unsecured Personal Loans For People With Bad Credit
Lots of banks provide unsecured personal loans. Wells Fargo does. Bank of America does. Chase does. The list goes on and on and on. If you have awesome credit you can walk into almost any bank and take one out. Some banks call these loans signature loans but the name doesn’t matter. The point is that you can easily take out an unsecured loan if you have a job and great credit.
The problem, however, lies in the fact that there are millions of people in our country that don’t have great credit. Many people have bad credit and for these people, the process of borrowing money is a lot more complicated. If you have bad credit, banks are going to turn you down because they believe that you have a history of not paying your bills on time.
My Story With Bad Credit
When I first started college, I didn’t understand credit. I also didn’t have parents who cared about helping me to learn. They actually don’t know a dang thing about credit – about money for that matter. I took the first two credit card offers I ever got and open up two credit accounts. I proceeded to ruin my credit by making my payments late (way late) and going over my credit limits. I lost my job and had no way to make money so I decided (stupidly) to let those cards go. The banks shut them down and I had a terrible credit history.
Two years later I had become really responsible with money. I had a good job and paid my bills on time. I had learned about how credit works and had realized how many mistakes I had made. In those two years I hadn’t paid a single bill late. I decided that I better check my credit report and discovered, to my horror, that my score was around 475. I’m pretty sure you can’t buy a snickers bar on credit with a 475 credit score.
Can you see the conundrum? I was a truly responsible person with a terrible credit score. Where do people like that get a loan when they need it?
The short answer is that you simply don’t have any awesome options. It didn’t matter that I had two years of a clean credit history – banks wouldn’t even consider giving me unsecured personal loans with bad credit.
The Options I Had
At that point, I discovered that really I only had two options:
- Find a cosigner (I honestly didn’t have anyone to help me out with that).
- Use cash advance loans.
Neither of these options is that great. Cash advance loans have a ton of interest and I didn’t have a person in the world who could help me as a cosigner.
I took out a cash advance loan or two but realized that I was only making my situation worse. I decided to create a real savings account with a few thousand dollars in it. That account became untouchable – almost like it wasn’t my own money. I never again needed this type of loan.
However, that doesn’t mean that I didn’t use these loans before that, when I needed to. If you find yourself in that situation, just be careful. Investigate the lenders you’re checking out. Check more than one and compare fees and interest rates.
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Unsecured Loans For Bad Credit
Looking For Unsecured Loans For People With Bad Credit
Finding Unsecured Personal Loans With Bad Credit
Have you tried selling off items you don;t need anymore? it much better than taking out a loan and is kind of theraputic. I sold a buch of old gold and jewlery items via goldgive.com. It was much better than borrowing the $500.
Donna
I have very bad credit. I have excellent income (150k) Do you know anyone that will give me a $10,000 loan with about a 48 month payback?
I need a home loan to consolidate my credit cards and remodel my kitchen. My credit score is low but I need help to get out of this mess with a low interest monthly payment.I have spent a great deal of time this summer trying to get a loan but to no avail.I was up front about my credit score,promised a loan then blown off.I spent money on all kinds of paper work and faxing only to be told what I stated in the first place.
I Have a Job and a karate School I work Out of churches and a gym need my own place I have about 20 students all together bad credit {yes} but this is great We just need our own place and start up for equipment I have a small about but the children love it I also teach women self defense is the some one who will help
I need a loan of 5000.00 for 120 days. Have gotten behind on bills because of Doctors, medication and hospital Will pay good interest rate. Please I need help.
Check out http://www.WikiLoan.com … it is a new site for peer to peer lending. Pretty neat site
@don cozzie,
I’m not sure why you would need a small loan like that with a 150K income, but my advice is to use your income to fix your credit, which is actually easier than you might think. Many times creditors and collection agencies will allow you to pay off much less than the amount owed to pay it off at once. Try to negotiate complete removal or the information will still affect your credit, because of the missed payments. Fixing just a few things on your credit report, even smaller debts may bring your credit score up enough to qualify for a personal loan in that amount.
@Nancy Ortega,
Generally, when there is the need to consolidate your credit cards it means that you cannot meet the payments required by the credit card companies. If this is the case, then I wouldn’t recommend any extra for remodeling. Instead, talk to lenders about a loan to consolidate, and get your credit cards paid down. This will not only raise your credit score a bit as you bring your accounts current or satisfy the debt, but will also improve your debt to income ratio, since your total debt will be less. Your kitchen may have to wait until you improve your credit score.
@Bishop,
A small business loan can often be approved more easily than a personal loan, especially if you have a solid business plan and customers already. It sounds as if you have the customer aspect covered. I would work with a small business consultant (many cities offer them as a free service) to develop a business plan that shows a solid profit margin and take it to your bank or finance company. You may be able to get financed on the merit of these things alone.
@Clinton Gunter,
Getting a loan for a four month period is nearly impossible unless you have a $100,000+ income and almost no debt. This is because the payments would be extremely large and most lenders aren’t willing to take a chance. Have you considered financing for a longer term, say 24 months?
Regards to all,
Maggie