Are you in fast need of a loan but don’t have much to offer in the way of collateral? If so, you’ll need to rely on an unsecured personal loan to take care of your funding problem. However, if you’ve got poor credit, you may have a hard time getting one approved.
You may have never thought of it, but if you’ve got a car that’s paid off entirely or has only a few remaining payments, then you can leverage it as collateral for a safe, reliable and affordable car title loan from Car Capital Financial. Call us now at 1-888-500-9887 to get a title loan delivered into your bank account today!
If you don’t have a vehicle with a title and just want information about unsecured personal loans for bad credit holders, then read on:
Unsecured Personal Loans: The Basics
Most types of loans can be divided into one of these two categories: secured or unsecured loans. Secured loans involve taking out a loan with some kind of asset used as collateral.
For example, one of the most common types of collateral loans is a mortgage, which uses the property you’re buying as collateral for the loan. If you default on your mortgage payments, then the bank takes possession of your property in order to recoup the loss of not getting their loan money back.
This guaranteed security makes secured loans much easier to obtain than unsecured loans, because it protects the lender from loaning out money and not getting anything back in return.
An unsecured personal loan is a type of loan that doesn’t involve any collateral, so the lender has a lot more at stake. As a result, unsecured personal loans typically charge much higher interest rates, origination fees, late fee charges and other penalties due to their lack of security from the lender’s perspective.
Common examples of unsecured personal loans include:
- Bank Loans (that don’t involve any collateral)
- Credit Cards
- Neighborhood Loans
Getting an Unsecured Personal Loan with Bad Credit
If you are considering getting a credit card or neighborhood loan as your unsecured personal loan, you likely don’t have to worry about your credit score. Ironically, many credit card companies award cards to just about anyone, regardless of whether they have a good credit history.
And when it comes to neighborhood loans, these lenders often lure in customers with a “no credit check” policy, not caring about the borrowers credit scores, because they want their borrowers to default on their loans and end up having to pay late fees, penalties, and additional interest on their loan.
Getting an unsecured loan from a reliable lender like a traditional bank is extremely difficult. Many bank loans don’t award unsecured loans for bad credit holders because they don’t trust the borrower will be able to pay them back on time, or at all, and they aren’t willing to take the risk of giving out money when they can’t expect it to be paid back in full.
This doesn’t mean to say that you won’t be able to get an unsecured loan with bad credit, but you will likely need to demonstrate the following in order to increase your chance of approval:
- Explain Your Poor Credit History – Is your poor credit through no fault of your own? If your bad credit is down to an unexpected emergency, explain this to the lender and they may be more sympathetic in awarding an unsecured personal loan despite your poor credit history.
- Demonstrate Efforts to Rebuild Credit – If you’re taking active steps to rebuild your credit, such as paying off old loans, always making the minimum payment each month on your credit card etc, demonstrate this. Show paperwork that demonstrates you are actively taking steps to improve your score and this could allow the lender to feel more comfortable in lending money to you.
- Present Employment History – If your bad credit is partly due to recent unemployment but you now have a steady job and paycheck, let the lender know this. A steady job indicates to the lender that you’ll be more reliable to repay your loan and they may be willing to overlook your bad credit.
Even with these steps there’s no guarantee that you’ll get an unsecured bank loan approved if you have bad credit, but it’s worth a shot before giving up and going with an unreliable neighborhood loans company.
Car Capital Financial – A More Reliable Option
If you don’t want to get a neighborhood loan, take out another credit card or attempt to get an unsecured loan from a bank, then consider getting a title loan from Car Capital Financial instead.
We offer a unique opportunity to car owners in Southern California who need money fast. We deliver title loans worth thousands of dollars, often on the same day of request and in some cases as fast as 30 minutes from your first contact.
We won’t need to check your credit score or credit history, so even terrible credit won’t affect the terms of your loan. Title loans are issued based on your ability to repay the loan. To get the money you want today, all you’ll need is a vehicle with a wholesale value of at least $5,000 and a clear title.
For more information, call us now at 1-888-500-9887. We’ll get you the money you want today!