A weekly paycheck is usually not enough to cover a lot of items that you might need now. If you are looking to fund a larger purchase, an unsecured loan can provide the needed money without having to sacrifice your regular income.
Perhaps you nee to purchase a new car, truck, SUV, or other vehicle, or maybe you are looking into buying some new furniture for the den. A dream vacation may be in your plans but you have not been successful in saving the money to fund your Caribbean cruise or trek across Europe. An unsecured loan can help you fulfill these needs and more.
An unsecured loan is a loan that is granted to you based on your creditworthiness. The lender looks at your past payment history and current income to determine your ability to repay an unsecured loan. If you have decent credit (usually 650 or better), you should have little trouble finding multiple lenders who will loan you money.
For those without credit history or those with bad credit, lenders tend to be more hesitant to extend credit. This type of borrower is seen as a risk – and most lenders, especially in a tight economy, will not consider taking on unnecessary risk by loaning money out that they may never see again. If you are a borrower without credit history or with poor past credit performance, you may need to spice up your application before you submit it.
Improve Your Chances Of Getting Approved
One way to make your application look more appealing to lending institutions is to take out a couple of secured credit cards. A secured credit card looks and acts just like a regular credit card – the only difference is the credit line for a secured credit card is backed by a deposit that you make with the card issuer. Your line of credit is equal to your deposit of record.
Because secured credit cards report to the credit bureaus in the same way that a regular card would, you can add valuable points to your credit in no time by having secured credit card; For borrowers without credit histories, this is also a great way to gain credit history on your file.
You can also improve your chances of receiving an unsecured loan by applying with a cosigner who has better credit than you do. A cosigner can be a parent, friend, or other person who believes that you will honor the terms and conditions of your loan agreement; If you do not, the cosigner will be require to assume responsibility of your payments, or their own credit rating can be damaged.
Convenient Online Borrowing Options
When selecting you unsecured loan, you will have a multitude of lenders vying for your business. Look for the unsecured loan with the least interest rate possible. You also want to be able to repay your unsecured loan early without penalty.
Online lenders provide great unsecured loans that are usually more attractive to borrowers than those offered in their hometown bank. Online lenders also offer the convenience of applying for your unsecured loan from the comfort of your own home, twenty-four hours a day and can deposit your loan carried into your bank account in minutes.