If you have had credit problems in the past, leading to a current poor credit rating, and are in need of a loan, you may qualify for an unsecured bad credit loan. An unsecured bad credit does not require you to use your property as a guarantee or security for the credit either. As it is unsecured, the credit offers a little more flexibility to the borrower that does not wish to put their home at risk.
Anyone can apply for an unsecured bad credit loan, but before an application can be processed your age and employment status are taken into consideration. Normally, as long as you are over 18 and employed you can apply.
An unsecured bad credit loan can be used for just about anything if you are approved. Most often, people need to finance a new car, take a vacation, make home improvements, pay for school or university fees, or even pay off credit cards. Once your credit is granted you are free to spend the money on anything you wish.
Unsecured bad credit loans dispel the myth that if you're financially troubled, it won't be possible for you obtain a loan and will be forced to resort to financial aid with higher interest rates and fees.
The truth is that even people with very poor credit scores can apply for unsecured bad credit loans. The only condition is that you should be ready to do a little research online and compare rates to hit the most competitive one for you.
Normally, unsecured bad credit loans are for short time period and interest rates are somewhat higher. Another form of unsecured bad credit relief comes in the form of a quick loan called a 'payday loan'. Most payday loan lenders require only that you are 18, employed in a steady job for at least 3 months, are a US citizen, and have a checking account. One of the biggest attractions of this loan is that your credit score is not an issue. For people who are turned down loans by banks due to their bad credit an unsecured bad credit loan may be just the thing.