Not everyone has a good credit score. Does this mean they’re not eligible for a loan? That’s where personal unsecured loans come to the rescue. They allow people with poor credit score to get a loan to pay for their medical bills, purchase a new TV for the living room or go on a much needed vacation.
Unsecured loan is a very feasible option for getting cash in almost no time, and without going through a hassling process.
When the bank gives you a weird look
When in need of cash, there’s no reason that a bad credit score will keep you from getting a loan. Your bank may give you a weird look just because you expressed you desire to buy a new car or arrange a beautiful marriage ceremony, but there are loan providers who don’t think that having a bad credit score means you’re not eligible for a loan.
The benefits of personal unsecured loans
Besides the obvious benefit of getting a loan when no one else gives it, there are other benefits to the unsecured personal loans:
* The loans are easily available
* The repayment terms are flexible
* Quick approval process
Secured personal loans
Another option available for those with bad credit score is to secured personal loans in the form of car title loans. With car title loans, the borrower’s car – assuming that he has one – is being used as collateral. This way the loan becomes secured, since the title is temporarily being listed under the lender’s name. The amount of the loan is determined by the value of the car, and can range from $2,501 to $20,000.
Since this is a collateral loan, most lenders don’t ask to see the credit history. All they need from the loan taker is to have a valid title enlisted under his name – and that’s it. The process is hassle-free, and the application can be made online in most cases. In average, it takes about an hour from the minute of applying for the loan until you get the cash lands in your hands. That’s some instant cash all right.
The thing about personal loans
The unsecured and secured personal loans can really make a difference for someone who needs the cash but suffers from a bad credit score. Having said that, it’s still important to remember that a loan is still a loan. Taking one without having the ability to repay it will eventually lead to another loan, this time with higher interest rates.
Learning how to run a balanced budget is crucial to ending the debt circle. It usually means cutting on some expenses and working harder to compare prices and bargain, but eventually it will lead to a much carefree life. It’s definitely worth it.