To be frank, many regular banks in US do not approve any unsecured loan application for people with very bad credit. These banks do not want to take any financial risk as they are afraid that the borrowers are unable to repay their loans without putting up collateral.
If you are one of the victims of financial crisis and you are having low credit score, in fact, you are advised not to take up any personal loan because it will make your financial situation worse. However, if it is unavoidable for you to get quick cash for very urgent matters, you are recommended to submit your loan application to non bank lenders.
Nowadays, due to the high demand for quick cash, there are many non bank loan providers who are offering short term unsecured loan for people in need. The most popular type is called payday loan. It is offered by the lenders to almost everyone who is currently employed without any credit check. The reason why it is called payday loan is because the borrowers are required to pay back the loan with their next paycheck.
In order to obtain the financial assistance successfully, you need to go through 3 simple steps:
Step 1: Determine your loan amount
Since your credit rating is very low, it will be good if you can keep your loan amount as small as possible. By doing so, you normally stand a higher chance to get your application approved faster. At the same time, you must consider whether you are able to repay the loan or not. You need to bear in mind that the interest rate for this type of loan is extremely high. Do not simply increase your financial burden. You must evaluate your financial needs carefully.
Step 2: Find a reliable loan provider
Since there are so many lenders in the market, you must make sure that you obtain loan from a reliable one. You can either find the list of “quick loan” lenders online or offline. You must make careful selection because there are many unethical companies and scams out there. To play safe, it will be good if you can spare some time to find out the background of the lender through the Better Business Bureau. You can also refer to your family members, friends or colleagues for recommendations.
Step 3: Submit your application
Once you have identified the lender, you should then fill up the loan application form and complete all your personal information accurately. Since there is no credit check involved, you are required to prove your financial ability by furnishing the lender with some supporting documents. You don’t need to show your credit history as it is bad. Just provide your pay slip to the lender.
Seriously speaking, your pay slip is your strongest supporting document. Besides, you can furnish your lender with your social security number. After you have equipped the lender with these two items, you just need to wait for the approval.
In general, most of the lenders are able to inform the applicants about the status of their application very soon. The successful applicants can normally get their fund on the next working day. Even your credit is really bad, let’s try the simple steps above. I believe you are able to get financial assistance smoothly without putting up any collateral.