Facts about Unsecured Bad Credit Personal Loans

By | March 20, 2013

Many people have been frequently misinformed about getting unsecured bad credit personal loans especially when they are seeking a financial assistance to aid their finances. Here are the a few common myths which are also common advertising clichés that often heard or used to attract those vulnerable loan seekers:

Myth #1: Lenders approve unsecured bad credit personal loans fast – i.e. within a few minutes, or less than a day

Advertisers use this cliché to lure bad credit loan applicants by transcending a message implying that it’s extremely easy and fast getting unsecured bad credit personal loans. Examples advertising taglines used are “Get your unsecured bad credit personal loans fast within less than 1 hour”, “Apply now and your loan will be approved immediately” and etc.

Fact: Both traditional and non-traditional lenders normally do not approve unsecured bad credit personal loans immediately or less than 1 business day and that applies to both of their existing and non-existing clients.

Myth #2: Lenders will not perform credit check on applicants with bad credit score

Most people believe that they have high chances of getting a loan approval even if they have a bad credit score. Common advertising taglines used are “Get a loan with no-credit check and no collateral”, “No-credit check unsecured bad credit personal loans” and etc.

Fact: The statement above is only partially true as lenders do not perform any credit check on the loan applicants. However, the applicant is required to have a loan guarantor to support his/her application. Therefore, the guarantor’s creditworthiness has always to be taken into consideration as every lender performs credit history check on the guarantor.

Myth #3: You can possibly get unsecured bad credit personal loans from traditional lenders

Some people are still unaware about the existence of reputable non-traditional lenders and they keep relying on traditional lenders for financial solutions.

Fact: After the fall of the Lehman Brothers, most traditional financial institutions do not grant any unsecured personal loans for people with bad credit history. You need to use the local Better Business Bureau (BBB) directory to scout for credit unions (which provide loans for their members) and non-traditional lenders.

Myth #4: You can easily get large unsecured bad credit personal loans

Some lenders claimed that they are granting more than $10,000 loan amount specifically to eligible borrowers with bad credit history.

Fact: It is very rare to find non-traditional lenders who provide such large unsecured bad credit personal loans. In most cases, lenders normally grant smaller loan amount to eligible borrowers – i.e. the range is from $1,000 – $10,000. The interest rate or annual percentage rate (APR) applied is higher than those typical secured loans.

Be sure to get the facts right before you start applying for unsecured bad credit personal loans from reliable non-traditional lenders, and consider the pros and cons of having such loans. Find out more appropriate ways to look for reliable unsecured bad credit personal loans online – Click Here.

None found.

Leave a Reply

Your email address will not be published. Required fields are marked *