Can I Get An Unsecured Loan With Bad Credit?
Personal loans are sure a blessing to bail you out of financial hurdles. Loans are of two types- a secured loan and an unsecured loan. Secured loan as is evident from the name is the loan with some securities to back up say, if you own some property or automobile, the lender will give a certain percentage of the total value of the property as loan. He will then sell it off in case you default in your payment. However, unsecured loans are without any securities. The only security to the lender is your verbal assurance to repay him. This presents a very clear picture that the lender is taking a big risk in lending you money as in case of your default, he and he alone will be the loser. This paves the way to say that lenders are more interested in issuing secured loans only. Therefore, you can easily avail of this anywhere, anytime and from anyone. However, does that mean that lenders do not at all give any unsecured loans? No, lenders do give unsecured loans termed as 'high-risk' loans. Initially they will analyze your credit worthiness. This is credit scoring. They search out your financial history and see if you have any other pending repayments and then you can get an unsecured loan. However, there is another angle to this analysis. You might be availing a loan or credit for the first time. In that case, you will not have any financial history. Now you have to create your history by getting your credit card or unsecured loan sanctioned through some known agencies like your employers. In case, it is such that you have been long defaulting in your credit payments, then you are a case of bad credit. Now you need those green papers. There is a way out. You will find many lenders on the Internet. They are willing to go to any ends to lend you hard cash. You may ask why they will. There are two reasons for this. Firstly, they earn their bread by lending you. In other words, they will earn their salaries only by marketing these loans. Secondly, they are ready to take up your bad credit risks, as they will be charging quite a good percentage of interest and are humane enough to understand your difficult position when you could not repay for some genuine problems. Therefore, you can get unsecured loans with bad credit.