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There are numerous reasons that you have bad credit, but the only reason the bank needs to turn you down for the unsecured loan that you need immediately is your previous poor credit performance. Perhaps you have lost your job or became injured or ill and were unable to work, causing you to miss payments and driving your credit score down. Bad things happen to good people, and if you are a hard-working and honest person, you can still qualify with many lenders for an unsecured loan.
Unsecured Loans Avoid Risking Your Assets
An unsecured loan, unlike most loans, does not require that you pledge collateral to secure the funding that you need. This means that borrowers who either have no collateral to pledge, or do not wish to risk their collateral can qualify for the unsecured loans they need and get cash in hand almost immediately. One of the most advantageous aspects of the unsecured loan for those with collateral is that, in uncertain economic times, you are not putting your home or other property on the line to borrow money. Your assets are safe with an unsecured loan.
Before You Apply
Before applying for your unsecured loan, it is important that you make sure your credit report accurately reflects the type of borrower that you have been in the past. You can do this by checking your credit report with all three credit reporting bureaus to find mistakes that might have been entered onto your credit record by mistake. Nearly half of all credit reports, when examined, contain errors of some sort, so it only makes good sense that you should check yours for accuracy, and also that you check your credit report at least twice each year to make sure that your good payment history is being noted appropriately.
Any mistakes on your report should be noted to the bureau in question immediately. You can do this by filing a dispute with the bureau, and they have thirty days to correct the matter; oftentimes, a dispute results in the deletion of a negatively reported item. You can receive one free copy of your credit report from all three bureaus - Experian, Equifax, and Trans Union every year, although you may be charged if you wish to see your actual FICO score.
Borrow Up To $10,000
That being done, you can proceed to filling out the application for your unsecured loan. Keep in mind that the lender will be looking at your ability to repay them, so they want to see adequate income that you have coming into your household as compared to other debts and financial obligation. Married couples should always file a joint application so that both incomes can be used in determining the amount of money that can be borrowed on the unsecured loan.
Unsecured loan limits end at around $10,000 for those borrowers with bad credit, but keep in mind that by repaying the unsecured loan lender on time with a good payment history, your credit score will improve and you will qualify for bigger and better loans in the future.
Online lenders offer lots of choices when it comes to unsecured loans for those with damaged credit. Additionally, the online lender offers the ease of an online application that can be completed day or night from your home or office.
