Many consumers do not know that bad credit unsecured signature loans are available for bad credit borrowers. In the past, this is considered a high risk loan for people who have a low FICO score and must pay higher loan interest rates. However, there are more and more lenders that give $50,000 signature longs for long term so that the borrowers have more time to come up with the repayment and settle any current financial difficulties. However, it can be cheaper to use a title loan against the value of your vehicle.
Signature loans are simply unsecured personal loans where you do not need to place any collateral to secure the loan. Since the loan companies do not need any loan security, approval can be given on the same day for small signature loans up to $5,000. For bigger amounts, usually a credit check may be involved and the lending terms will depend on your personal credit history.
Some people prefer to take long term bad credit signature loans since they can avoid risking the loss of their homes. If they put down their house to secure a loan and cannot pay up, the banks will be able to repossess and foreclose their property. However, the disadvantage is that signature loan rates for poor credit borrowers will be several points higher.
Long Term Unsecured Signature Loans Where To Find
The best place to find lenders for long term unsecured signature loans depends on your personal credit. Unless you have a good FICO score, there is no need to approach big banks for such Wells Fargo for a unsecured loan. Just pass up these offers and look for a legitimate online money lender instead.
When you are comparing signature loan lenders for the cheapest rates, be sure to check their credentials and choose only reputable loan companies since there are a lot of unethical lenders and scams online. A good way to verify the legitimacy of a loan company is to check with the Better Business Bureau web site for complaints. Read through their lending terms carefully for hidden fees or unfair clauses before you sign up.
If you do not have good credit, you must at least be able to convince the lenders that you can pay them back the money on time. This means you should have a stable and documented job or income since the maximum signature loan amount for bad credit is 5 times your monthly paycheck. To get an unsecured $50,000 loan, you will need to earn at least $10,000 a month. However, this guideline is usually relaxed for long term bad credit loans, so you can usually negotiate with the loan companies. Just make sure you have no problems paying back the loan money on time.
Signature Loan Rates For Poor Credit
Be warned that signature loan rates for poor credit is never cheap, sometimes as high as 24%. This cannot be avoided since you will not be able to get a big loan anywhere else. Thus the issue is whether you can make full use of the loan and earn more than the interest fees. Use a loan calculator to plan carefully whether you should take up the unsecured personal signature loan offer or not.