Due to the poor economy and unemployment crisis, lending guidelines at banks, credit unions and other financial institutions have changed as well. Besides the conventional secured loans where a valuable collateral is placed down to approve a loan, many lenders now offer no credit check signature loans where borrowers do not need to provide any security against the loan amount. All you need to do for securing these unsecured bad credit loans is a loan activation letter with your signature.
The main reason why many consumers are using no credit check signature loans is the fact that anyone with poor credit history can get approved instantly. For other types of personal loans, they tend to get stopped because the lenders find a problem in their credit history checks. Now, you can borrow unsecured signature loans with no credit check despite having arrears, late payments, defaults, CCJ and other credit problems.
High Risk Signature Loans For Bad Credit
Due to the fact that these are high risk unsecured loans for bad credit, the lender will limit the maximum amount you can borrow to around $2000. How much can you borrow with bad credit unsecured depends on your monthly income and repayment ability. Your actual credit score does not matter since there are no credit checks.
You can usually borrow more if this is not the first time from the same loan lender. However, you are allowed to use the loan for any purpose with no questions asked, such as a wedding party, overseas vacation, paying off high interest debts, start a business etc.
24 Months Unsecured Loans No Credit Check
The typical payment term for no credit check unsecured loans is between 6 months to 24 months, which is definitely longer than payday loans. If you need a bigger loan for poor credit, these should be the best option for you instead of no credit check payday loans. As long as you have a good income, you can pay slightly lower interest rates despite having bad credit history since your overall default risk is minimized.
Make sure you use this opportunity to rebuild your credit using unsecured personal loans. That means you should not borrow more than what you can surely pay back with no problems. If the lenders take legal action action you, you will have problems getting more loans and credit in future.
Bad credit signature loans can be very useful for students and tenants with no property that can be used for secured bank loans. If you need to get personal loans at reasonable rates, do some price comparison over the internet for the latest deals on easy signature loans.