Find out more on Debt Consolidation Credit Counseling In Phoenix Now!
Friday, February 27, 2009
Unsecured personal loans are a debt financing tool used by individuals who need a) a relatively quick loan with no collateral, and b) a way to improve their credit score and relationship with their local banks and lenders. There are any number of reasons a person might need this kind of loan.
Quite a few of the banks and lending insitutions out there don't even offer these kind of loans because they feel the risk is too high that the borrower will fail to repay some or all of the loan balance. Many of the people who seek this type of financing have hurt their credit score in the past and they're in a credit rebuilding phase. That's why these loans most often carry borderline exorbitant interest.
However, there's no reason for you to get discouraged and give up; after taking out several of these loans and repaying them in a tmely way, your lender will report your consistent payments to the credit score companies and in time you won't need high fee, high interest loans to keep your finances operating smoothly.
More than one tough situation can arise that would cause you to need to borrow money quickly and without collateral. Many lenders say they see people using this debt instrument most frequently when their vehicle has broken down and they have no way of getting themselves to work, which would create a vicious cycle where they have no work and their bills start to go unpaid.
Another situation could be if a person who works around dangerous machinery were to be injured on the job, he might need some fast money to cover an unexpected medical bill so he can get himself taken care of and get back to work as quickly as possible. Health insurance deductibles can often run anywhere between $500 and $1500, which would be the size of the loan he would need if he didn't have that money sitting in the bank at the time of the accident.
Finally, if part of the roof of your home collapses and you need to repair it in order for your family to stay safe and warm, an unsecured loan might your only option in the absence of a healthy savings account balance. Of course, in the long term you should start putting some money into savings each month so after a couple of years you have an emergency fund to make any undesirable borrowing totally unnecessary in your life.
Quite a few of the banks and lending insitutions out there don't even offer these kind of loans because they feel the risk is too high that the borrower will fail to repay some or all of the loan balance. Many of the people who seek this type of financing have hurt their credit score in the past and they're in a credit rebuilding phase. That's why these loans most often carry borderline exorbitant interest.
However, there's no reason for you to get discouraged and give up; after taking out several of these loans and repaying them in a tmely way, your lender will report your consistent payments to the credit score companies and in time you won't need high fee, high interest loans to keep your finances operating smoothly.
More than one tough situation can arise that would cause you to need to borrow money quickly and without collateral. Many lenders say they see people using this debt instrument most frequently when their vehicle has broken down and they have no way of getting themselves to work, which would create a vicious cycle where they have no work and their bills start to go unpaid.
Another situation could be if a person who works around dangerous machinery were to be injured on the job, he might need some fast money to cover an unexpected medical bill so he can get himself taken care of and get back to work as quickly as possible. Health insurance deductibles can often run anywhere between $500 and $1500, which would be the size of the loan he would need if he didn't have that money sitting in the bank at the time of the accident.
Finally, if part of the roof of your home collapses and you need to repair it in order for your family to stay safe and warm, an unsecured loan might your only option in the absence of a healthy savings account balance. Of course, in the long term you should start putting some money into savings each month so after a couple of years you have an emergency fund to make any undesirable borrowing totally unnecessary in your life.
About the Author:
Borrowers who want to have their money fast and easy should check out Rick's poor credit unsecured personal loans and if they're in a big hurry to get their hands on some money they can get a bad credit instant personal loan.
posted by Credit Counseling at
4:13 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home