A weekly paycheck is usually not enough to cover many items you may need now. If you’re looking to finance a larger purchase, an unsecured loan can provide the money you need without sacrificing your regular income.
Maybe you need to buy a new car, truck, SUV, or other vehicle, or maybe you’re thinking about buying some new furniture for the living room. A dream vacation may be in your plans, but you haven’t been able to save the money to finance your Caribbean cruise or Europe trip. An unsecured loan can help you meet these needs and more.
multiple lenders
An unsecured loan is a loan that is given to you based on your creditworthiness. The lender looks at your past payment history and current income to determine your ability to repay an unsecured loan. If you have decent credit (usually 650 or higher), you should have no problem finding multiple lenders to lend you money.
For those with no credit history or those with poor credit, lenders tend to be more reluctant to extend credit. This type of borrower is considered a risk, and most lenders, especially in a tough economy, won’t consider taking unnecessary risk by lending money they may never see again. If you are a borrower with no credit history or past poor credit performance, you may need to spice up your application before submitting it.
Improve your chances of being approved
One way to make your application look more attractive to lending institutions is to take out a couple of secured credit cards. A secured credit card looks and acts like a regular credit card; The only difference is that a secured credit card’s line of credit is backed by a deposit you make with the card issuer. Your credit line is equal to your registered deposit.
Because secured credit cards report to credit bureaus the same way a regular card would, you can add valuable points to your credit in no time by having a secured credit card; For borrowers with no credit histories, this is also a great way to get a credit history on file.
You can also improve your chances of receiving an unsecured loan by applying with a co-signer who has better credit than you. A co-signer can be a parent, friend, or other person you think will honor the terms and conditions of your loan agreement; if you don’t, the cosigner will have to take responsibility for your payments, or your own credit rating may be affected.
Convenient online loan options
When selecting your unsecured loan, you will have a multitude of lenders vying for your business. Look for the unsecured loan with the lowest interest rate possible. You also want to be able to pay off your unsecured loan early without penalty.
Online lenders provide excellent unsecured loans that are generally more attractive to borrowers than those offered at your hometown bank. Online lenders also offer the convenience of applying for your unsecured loan from the comfort of your home, 24 hours a day, and can have your loan funds deposited into your bank account in minutes.