In today's high paced world and with
the rising cost of living, is it any wonder that many people meet with
financial crises so often and need a short term payday loan even when they
already have bad credit history?
It could be as simple as a flat tire
just before payday or a medical emergency such as a broken bone or sprained
joint. You come to find out that you just don't have enough. Or maybe your
needs are a little more long term, such as a home or auto repair, or an
unplanned trip. And you find you just don't have enough to pay for it, and what
is more, you either have maxed out credit cards or you don't even have credit
cards, much less credit.
The answer is unsecured loans. There
are several types of unsecured loans in today's market. Even if you have bad
credit, it's plausible to find something that fits the bill.
Unsecured loans are simply
extensions of credit where none of the borrower's assets are used to secure
collateral for the debtor or loan agent. Instead, funding may be guaranteed for
the promise of a future payment such as is the case with payday loans and
certain types of credit cards. The only drawback may be associated fees or
higher interest rates. However, when you really need the money, it may be worth
it.
Types of Unsecured Loans
Payday Loans:
This is a temporary loan secured on
the promise of repaying your next paycheck to the lender. These often carry
high fees as well as interest rate either during the initial installment, or
retroactive if the repayment is not secured by your next payday. These loans
are great for a one time emergency, every once in a while. The high fees make
them not so great for long time solutions or for repeat users. The good news,
the loan is often secured with just a signature, a few paystubs, and is
deposited usually within 24 hours. Loan amounts vary from a few hundred dollars
to about a thousand dollars.
Credit Cards:
Most credit cards require that the
borrower have good credit. And many offer very low interest rates and very few
fees. However, if you have bad credit, there are a few choices out there, and
many cards are guaranteed to be active the next day. They have a few negative
points though. If you do have bad credit, then you may have to pay a monthly
user fee along with excessively high interest rates and other fees. Additionally,
the card may have an extremely small limit.
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