Poor Credit Unsecured Personal Loans – How to Increase Your Chances

By | August 18, 2014

People who have less than 600 FICO score usually experience bigger problems of getting loans from traditional lenders due to their bad credit history. Rather than appealing to these lenders, they would prefer to try their luck on non-traditional lenders who offer poor credit unsecured personal loans.

Unsecured Personal Loans

However, it’s a false pretense that many would think that getting poor credit unsecured personal loans are easier than traditional lenders. In fact, non-traditional lenders are selective as they evaluate the loan applicants’ financial status and reject those who do not meet their requirements.

Therefore, here are a few things that can probably increase your chances of getting poor credit unsecured loans:

  1. Follow the loan application procedure correctly – Some applicants do not follow the application procedure accordingly although their financial status actually meets the borrowing requirements. The common reason their application are rejected by lenders because of incomplete form filling or giving the wrong details – i.e. total earnings, personal particulars and etc. Hence, be extremely careful when you are filling loan application forms regardless online or paper forms.
  2. Looking for a co-signer – The probability of getting poor credit unsecured personal loans is much easier when you successfully have a person who can voluntarily bear the risk of having such unsecured loans with you. This person is commonly known as ‘guarantor’ or ‘co-signer’ who has a remarkable financial status, to support your bad credit unsecured personal loan application.
  3. You’re still under employment – One thing that most lenders concern about is the borrower’s ability to repay his/her loan on the long-term basis. Sometimes non-traditional lenders would forego credit check when you have a sustainable permanent income which is able make promptly repayments as agreed. Basically, lenders are more interested in your debt-to-capital ratio – the most common way to identify a potential borrower. Normally, a person who has a lower debt-to-capital ratio has higher chances to get poor credit unsecured personal loans than a person who has higher debt-to-capital ratio.
  4. Aiming for a lower loan amount – Let’s say there are two loan applicants who have the same poor credit records. One is applying for a lower loan amount whereas the other one vice versa. Theoretically, applicants who are applying for small poor credit unsecured personal loans are more likely to be accepted by non-traditional lenders than those who are applying for larger ones. Therefore, it’s crucial to determine the exact loan amount that you need to borrow.

Spend more of your quality time to do research on trustworthy non-traditional lenders as well as their details about poor credit unsecured personal loans so that you can possibly get the most affordable loan deal to support your personal finances.


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