Unsecured Personal Loans for the Unemployed - Growing Needs

Hope May Be on the Horizon but Hard Times Are the Rule

Unemployment rates are presently hovering around 9%, but some states, such as Nevada, are experiencing rates of unemployment as high as 14%! Many individuals live under the daily threat of losing their jobs.

Though things are looking a little brighter economically, the situation of joblessness remains. If you have recently lost your job and do not have enough cash to see you through the time between jobs, you may be faced with taking a personal loan for the unemployed.

The Need for Cash Can Be Severe

They say that trouble comes in threes. If you have lost your job and you are already facing cash flow problems, it seems that then is when an emergency pops up. An urgent medical need arises or the car breaks down. At that point you may want to consider taking a personal loan for the unemployed.

Personal loans come in two flavors - secured and unsecured. Secured loans have collateral, or valuable property owned by the borrower, to back them up. If the borrower defaults, the lender can take the property and sell it to cover the cost of the loan. An unsecured personal loan for the unemployed requires no collateral.

Understanding the Trade-Offs

Because of these shaky financial times, many borrowers are unwilling to place valuable personal assets - a home or a car, for instance - on the line, even though they may be desperate for cash. Since these unsecured personal loans for the unemployed have no collateral, the lender has to offset the risk by asking for higher interest rates and higher fees.

Also, the amount of the loans offered may be limited and the repayment terms may include rather quick pay-off periods. But for many, the higher costs may be a good trade-off against losing valuable personal assets. No one can foretell the future of national economies. And having the cash is often worth the higher cost as well, especially if an emergency arises.

Lending Help for the Unemployed

You may surprised to know that unsecured personal loans for the unemployed are even available. You may be even more surprised to learn that there are lenders who specialize in granting unsecured personal loans for the unemployed. You may have seen some advertised locally. You can find many more by availing yourself of online resources. The fact is that many traditional lenders, such as banks and credit unions, rarely grant unsecured personal loans for the unemployed.

As a result, many private lenders have stepped in to provide the service and most have set up shop online. A nice thing to remember is that these lenders have dealt with problems regarding unemployment, poor credit ratings and similar issues that may seem embarrassing. There is no need for embarrassment with these lenders. They have seen it all and your candor will be appreciated.

Shop Carefully and Diligently

By going online and pointing your browser to Unsecured Personal Loans, you will find pages of lenders who are probably willing to lend to you even though you are unemployed. Since there are so many lenders with rates that vary so widely, you will have a great opportunity to shop diligently to find the lowest interest rates, lowest fees and most comfortable repayment terms. Just be sure your lender is reputable and any page you use to divulge financial information is secure. Check your lender by using the online Better Business Bureau listings.

Temporary Relief

Be sure taking a loan today will not put you in trouble tomorrow. Check your budget. Understand that these loans are to fill an immediate need and are not for the long haul. At any rate, some financial comfort can be found through taking an unsecured loan for the unemployed.

(Joycelyn Crawford)

Loan Tips: You Can Get a Bad Credit Personal Loan for $5,000

Even though your credit is lousy, there are lenders willing to grant you a bad credit personal loan for $5,000. It will also do the improbable thing of improving your credit score - if you stick to your promise. Facing the fact of having poor credit, you start to realize that you will get rejections when you try to buy a house or a car. Certain lenders are willing to grant you a bad credit personal loan. Sticking to the terms of your contract, you will be adding a good touch to your credit rating and start you on the road to good credit so that you can buy that car or house.

Competition Creates Advantages

One reason why these loans are so readily available is the fact that many private lenders have recognized that people with bad credit need a loan once in a while, too. Traditional lenders such as banks and credit unions have tightened their lending qualifications making it very difficult to get a bad credit personal loan for $5,000 even for people who have good credit.

Recognizing that there were plenty of people desiring a financial product, private lenders rose up to meet the demand. The price of their loans is a little high to offset their risk. Initially, a few lenders were the only game in town for folks with bad credit. Others saw the money that was being made and jumped in. To attract customers, some lowered their rates and the competition began.

Many Folks Have Taken Hits on Their Credit Records

In the tough economic times of today, many folks have had no choice but to take some hits on their credit records. Some have missed loan or other payments. Some have been in arrears, have had judgments against them, and some have even had to declare bankruptcy. These bad credit personal loans were made for them. They are the best way for people with bad credit needing a loan. Once you have the cash, using it is your decision. Some use them for bill consolidation. Others use them for medical costs, home improvement and other good things.

The Secured or Unsecured Bad Credit Personal Loan

Unsecured loans are backed up only by your promise to repay and your signature. Loan amounts will be low and interest rates will be rather high. With secured loans, the opposite happens - rates will be lower and loan amounts can be higher. Secured loans have valuable property to back them up. This collateral can be seized by the lender and sold to cover the cost of the loan should you default. This collateral can be real estate, or it can be stocks and bonds, or even a late model car.

Finding Lenders Online

One of the best places to shop for lenders willing to grant bad credit personal loans for $5,000, is the internet. Key your browser with the term Personal Loan and you will soon see scores of lenders who may grant you a loan. You will also find brokers who will take a general application and come up with a list of lenders who would be likely to lend to you in the light of the information you divulged. As mentioned, because of the competition, you will be able to actually shop for the loan with the lowest interest rate, low or no fees and the best repayment terms.

Once you have five or six lenders, check their reputations. You can start with the online listings of the Better Business Bureau. If they are acceptable, submit preliminary applications and see who comes up with the best deal for you. Choose the best; the lender could give you an approval within minutes and the cash from your bad credit personal loan for $5,000 could be in your bank account within 24 for hours, sometimes sooner.