Getting a personal loan is very easy especially if you have any collateral security such as your car, house or any other valuable asset you may possess as this give the lender a guarantee that you will definitely pay back and failure to do so you lose your valuable asset which is the stressful part and the main reason why most people look for an unsecured personal loan.
Getting A Personal Loan with no collateral
Even without any collateral security, you can still get a personal loan, however, the lenders will need to check on a few things before you are approved to get that loan. They will take a look at your credit score as they use it to evaluate whether you can pay back or not, if your credit score is below 300 usually you will not get approved depending on the agency itself, some may approve your application and in this post I will also give those firms that can give a loan with even a bad credit score.
Provided that you get approved what you need to know is that if your credit score is low or at times too low your interest rate will be higher as well because the lenders when they see you, they see you as a risky investment and as such the riskier the investment the higher the interest rates or return on investment they want.
You should also take a look at things that have an effect on your credit score, things such as a credit history, if you have a good credit history paying back you depts on times this boosts your credit score and also the nature of your credit or reason for borrowing also has an effect on your credit score, for instance, borrowing for a business start-up and for a holiday vacation both have a different effect on your credit score.
So, you should make sure that you fix your credit score for future purposes because a bad credit score affects not only your ability to borrow but also your chances of getting a job especially if you have a long track of poor financial management.
In the event that you can not fix your credit score as it takes time and you need a loan as soon as possible, your best chances of getting one will be taking a look at some of these companies which offer loans to clients even with a bad credit score
- Fast Cash Online
- Awesome Loans – Installment Loan
- 24/7FastFunds.com – Personal Installment Loans
- Fast1KLoans – Personal Loans