Getting a personal loan, unsecured one in particular, could be one bothersome task if your credit score does not meet the ‘satisfactory’ requirements. Hence, most people here are willing to risk all they have to get a secured loan – but there are other ways to deal with it too. Getting an unsecured personal loan is very possible now with little application of common sense and communication.
Start with your own employer!
A great source of getting an unsecured loan could be your employer. If you have a good employment record and have a good relationship with your employer, you may ask for an advanced payment to deal with your emergency situation. What makes this a great option, is the fact that your employer will most likely not ask or go into unnecessary details of your credit report. Since the employer knows you personally, the employer will judge the situation based on your employment history and your conduct at work. Thus, unlike many financial institutions, you employer will likely provide you with an advanced payment, overlooking the bad credit report. Therefore, it is always critical to maintain a good and healthy relationship with your employer! Another advantage of receiving your advanced payment from the employer is that you do not need to pay any interest on the funds you receive.
Approach the bank as a ‘trusted, old customer’
If you are a trusted client of a particular bank where you have kept an account for at least four or five years, you could approach the bank in regard to borrowing the loan. This would have of course been if you were approaching a relatively new bank where your credit history would be all that would be considered. In this case your bank may show leniency in judging your credit as the bank considers you a loyal client and thus you have a better chance of getting the loan. Keep in mind that the bank would obviously charge you a high interest rate as is the case with most unsecured loans and your bad credit also makes you a high risk individual. However, at times, it is the availability of the funds that is more crucial than the interest rate; this is especially true in case of medical emergencies.
Quick Fixes to your Credit Report
Of course fixing your poor credit is not something you can accomplish over night; however, there are measures you can take to increase your chance of getting the unsecured loan. Many negative or derogatory statements on your credit report are mistakes, inaccurate information or outdated information. Immediately contact the credit bureau that provided this statement and get the correct information in writing from them. Since this may take some time, contact the debtor and have him or her provide you with the note in regard to the miss-statement. You may then submit this as a proof to your lending institution where you are seeking to borrow the funds. Not only this may help in the mean time but, also removing these mistakes from your credit report will boost your credit score in the long run.
Online Bad Credit Lenders
As a last resort, there are quite a few reputed online lenders that provide unsecured personal loans on simpler interest rates. They are specialized in providing loans to those with bad credit score. Also check online for sties that specialize in matching you with lenders based on your credit score. Today there are many online lenders that can provide you with a quick cash advance or payday loan until you receive your next paycheck. Again this should be your last resort as these lenders charge very high interest rate. Prior to applying for these loans, be sure that you have the means of repaying the loan on time.