Unsecured Personal Loans – The Last Recovery Option before Filing for Bankruptcy
If you are in an urgent need of cash to overcome any unexpected financial expense, then opting for the unsecured personal loans is an ideal thing to do. Such loans have helped many people irrespective to their credit ratings during their emergencies. You can avail unsecured loans at fixed interest rates and minimum monthly payments due. This type of loan is particularly helpful for those people who do not have assets which can be pledged as collateral.
Mostly people prefer such loans to make small purchases. For such kinds of loan, the lender relies totally on the borrower to repay the amount lent over a given period of time. To acquire unsecured loans, you need not pledge any of your assets to the bank or a financial institute. Besides, it is a kind of loan that can actually help you in improving your credit rating before you lose all that you have.
If you feel that you have no other school left and fun of you accept filing for bankruptcy, then you might want to sit down and consider going for an unsecured loan. It would be a better option than starting off with zero credit scores.
There are numerous benefits of signature loans, and they are stated as below:
- No security is needed: The main advantage of this loan is that no deposit of any kind is required. Despite of not having a vehicle or house, you can still go for this loan.
- Freedom of decision: A borrower can spend the amount wherever he or she desires. At times, the lender does not even enquire about the purpose behind taking a loan. However, it is the responsibility of the borrower to ensure that the money is paid back on time in order to avoid any kind of financial crisis down the line.
- No much paper work: Another major advantage of unsecured personal loans is that one need not sit for hours filling up forms and submitting numerous documents. It is absolutely hassle-free.
- Reimbursement tenure is as per the customer’s terms: The borrower can decide the period of repayment according to his or her convenience, but it usually has to be within a period of ten years. Although you end up paying more interest on longer terms, the payment amount per month will be lower.
Types of Loans:
Several types of loans come under unsecured personal loans. Some of them have been compiled here for you:
- Loans for personal use – It is used for all purpose and is perfect to purchase goods.
- Unsecured loans for medical expenses – It does not require any security and the borrowers can pay it within a shorter tenure.
- Loans for credit cards bills or Bank overdraft – It is another form of small period borrowing with simple refund options.
Although getting loans after bankruptcy is not very easy, it is not impossible either. There are some lenders who offer signature loans, even to people who had filed for bankruptcy. They offer loans without asking for any sort of deposit, but there will be a few stipulations. The individuals will have to be employed for a certain time period with regular incomes. Clearly, they will have to work on their credit scores.
It is suggested that you shop around a little before applying for a loan. Checking out multiple lenders for unsecured personal loans could give you a fair idea about how stable is the market and what are the current interest rates offered by the banks. Take your own time and go through all the terms and conditions, compare the rate of interest, tenure, eligibility and other criteria to get the best deal.
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