Where to Go for an Unsecured Loan

Finding a fast personal loan means knowing where to go for an unsecured loan. There are several places to go when you want to apply for an unsecured loan. In finances, just like in life, sometimes it is more important who you know, but even if you are not “connected” you can find unsecured loans. Unsecured loans are loans that require no collateral to back them up.

You should have these things in hand when you go to apply:

  • Proof of income – pay stub, tax form
  • Identification, driver’s license with photo
  • Recent bank statements
  • Personal references information

If you have good or excellent credit it will be easier to find this type of loan. If you have no, bad or poor credit rating the search is a bit harder, but not impossible.

Where to Go for an Unsecured Loan

  1. Friends or Family. The best place would be somewhere you borrow cash with no interest. This could be a family member or a friend.
  2. Credit Card Advance. Another opportunity to obtain an unsecured loan at low or no interest is with or a credit card that has a low interest rate or special deal for balance transfers.
  3. Financial Institution. The next best place to seek an unsecured loan would be a regular financial institution like a bank or credit union. Here you need good credit standing and your loan will have a longer repayment period than cash advances. These are low interest loans for most applicants.
  4. Payday Loan or Cash Advance Store. An option for those who are credit challenged with bad or no credit is cash advance or payday loan stores. With income, a bank account and identification you can get a smaller loan from $100 to $1500 that has is unsecured.

Warnings:

  1. A loan that is backed by collateral requires that if you default on the loan the lender can seize your pledged collateral item and sell it to pay off the loan. If they do not recover all you owe, they will still come after you for the balance of the loan.
  2. Payday loans are unsecured but you leave either a check or ACH withdrawal permission so if you default you will be in a bounced check situation and incur fees, possible legal action and will still owe the lender.

An Easy Payday Loan with No Credit Checks: How to Get Approval for a Bad Credit Emergency Cash Advance

Banks use credit scoring to determine eligibility for financial products which means the consumers with poor credit won’t qualify. Whilst this isn’t normally a problem, it becomes an issue when an emergency bill arises. An easy payday loan offers an alternative to mainstream financial products. They are an unsecured short term loan that is available for any purpose.

Eligibility Criteria for an Easy Payday Loan with No Credit Checks

Lenders realise that bad credit customers are not in a position to comply with traditional lending criteria. In order to get approval for an emergency cash loan, the customer will be expected to meet the following requirements:

  • Must be a U.S. citizen.
  • Over the age of 18.
  • In full time employment – minimum income $1,000.
  • Have a valid bank account with check book.
  • Provide two forms of identification – one form of photo I.D.

How Does Borrowing Money from a Payday Loan Lender Work?

Once a payday loan lender is satisfied that the applicant has met the eligibility criteria, they will offer a quick cash loan for up to $1,000. The customer provides a postdated check that is set to clear on payday for the principal and any interest that will accrue. The proceeds of an easy payday loan will reach the customer’s account the next working day at the latest. If the application is submitted prior to 2.30 PM, payment arrives on the same day.

The Cost of an Emergency Cash Advance from a Payday Loan Lender

Credit scoring allows the lender to accurately assess the likelihood of the borrower defaulting on the agreement. A loan with no credit checks doesn’t afford a creditor that luxury which means that the cost of borrowing money will be a lot higher. It costs $20-25 to borrower $100 for a month. This means that, if the customer took out a $500 easy payday loan, they would be expected to provide a postdated check for about $625. It is important to appreciate that repaying the debt will leave less money to pay the bills in future months.

Alternatives to a Quick Cash Advance from a Payday Lender

Should a customer not be in full time employment, it may be possible to get a small cash loan from a pawnbroker or credit union. Subject to affordability, a credit union may be prepared to lend money to someone who is on benefits. A pawn shop loan is available to customers who are able to provide collateral, such as gold, jewellery and electrical goods. Only borrow money when it is affordable to do so as having too much debt will reduce disposable income in future months.

Do You Need Credit Cards? Pros and Cons of Credit Card Use

Credit Cards Can Make or Break Your Consumer Credit Score

Recently I found myself in a rather unique situation. While billions of people struggle with bad credit, I was recently divorced and struggling with no credit. I quickly discovered that this personal finance situation was much worse than having bad credit because there was nothing for banks and financers to judge me on when I applied for credit cards, a car loan, or anything else.

Everyone was advising me to take out secured credit cards, but I didn’t like the idea of going into debt. I wasn’t used to taking care of all personal finance duties on my own and I was concerned with the high rates of consumer credit default, bankruptcy and other problems. I immediately started looking into the pros and cons of credit cards to determine what was best for my new personal finance situation.

Credit Card Pros

There is a reason the consumer credit market is so huge right now. Those concerned with making the most of their personal finance resources have many incentives to hold multiple credit cards. When you read this list of pros it may almost seem like the more credit cards you have the better:

  • Open consumer credit from credit cards that are not charged up high will boost consumer credit scores. Higher scores mean lower interest rates and a much easier time securing loans.
  • Credit cards allow you to make big purchases that you could never afford to pay for all at one time.
  • The more consumer credit you have the easier it is to take vacations and travel. You can put the majority of expenses on your credit cards and pay them off before taking the next trip.
  • You can get credit cards with rewards which give cash back, free airline miles and even free products like laptops and gift cards.
  • Credit cards are required to safely shop online. Since most people shop online today, it follows that most people need credit cards.

There are many other benefits to holding credit cards which individuals could identify for their own personal finance purposes. For instance, some families use their credit to pay medical bills while others use it as a back up plan for food and other necessities if they are short on cash.

For many, credit cards are simply used to splurge on luxury items that would otherwise not fit into the personal finance plan.

Credit Card Cons

Once I started thinking about all the pros to having revolving consumer credit, I was convinced that having at least one credit card on hand would be a good thing. Yet, I was also very aware of the cons that came with holding credit cards:

  • It is very easy to get into credit card debt that ruins your consumer credit score, rather than building it up.
  • It is very easy to overspend when using credit cards since the money is not leaving your bank account right away.
  • You can end up in court with credit card debt if you are unable to pay off everything you charge.
  • There are finance charges on most credit cards which collect every month that you don’t pay your balance off in full.

There aren’t as many cons to holding credit cards as pros, but they are very serious cons to consider. What I realized was that the cons come only when you don’t monitor your personal finance records and use your credit cards responsibly.

I decided that I was responsible enough to use my credit cards for one or two small transactions each month and then pay them back off immediately. This is the best strategy for boosting consumer credit scores, which was my ultimate goal. I went with one secured credit card which later resulted in my approval for an unsecured credit card which did help boost my consumer credit score.

Interested in using your credit cards to boost your consumer credit rating? Here are some tips:

  • Low interest credit cards or 0% interest credit cards will save you money if you do run a balance from month to month. The trick is you will need a higher consumer credit score to get these credit cards.
  • Credit cards with rewards programs will give you extra incentive and personal finance savings when you do need to use them.
  • Try to keep your balances on all credit cards as low as possible, paying them off completely every month as often as possible.