How to get an unsecured personal loan when you have bad credit is something which thousands of people ask themselves and their friends every single day in life. The reality is that the procedure is not easy – as credit ratings are specifically designed to prevent those who fall foul of them from getting more credit – but neither is it impossible.
Bad credit is where an individual has in some way defaulted on a credit agreement at some point in their past. It may be that the default was through circumstances entirely beyond their control and that their life and financial circumstances have subsequently changed beyond recognition for the better in the interim. Sadly, bad credit will remain on one’s central credit file for a number of years and put paid to most credit applications made during this period.
There are, however, some credit provision companies which will provide unsecured personal loans to those with bad credit. The rate of interest charged by these companies is likely to be prohibitive, however, as they see this as a means of covering the additional risk which they are accepting. These companies may be found by consulting local telephone directories, by searching on Google or even by consulting one’s local citizens’ advice bureau or equivalent.
There may also be an option within one’s vicinity of taking an unsecured loan from a lender who will accept a family member as a guarantor on the loan. This means that the family member – who should not have bad credit – will become liable for the monthly repayments in the event of any default on behalf of the principal borrower. This is of course an arrangement which should be considered very carefully beforehand as any future difficulties could be of more than a financial nature and affect family harmony.
There is of course another option for getting an unsecured personal loan with bad credit and that is to approach a family member or good friend who is in a position to lend the money. This is again an issue to be very careful around as inability to repay could prove more than awkward.
In order to explore this topic in full, it is necessary to mention the illegal money lenders who operate particularly in larger towns and cities. These money lenders will often lend money in the form of an unsecured personal loan to those with bad credit but it should be noted that not only will the interest charged be at an exorbitant rate, the costs of falling behind in the repayments could be painful in more ways than one.
How to get an unsecured personal loan when you have bad credit is something which is possible but certainly also a consideration which should be weighed up very carefully prior to launching in to any form of agreement with anyone.