Business Finance

Unsecured Personal Loans: A Good Alternative?

Unsecured Personal Loans

The unsecured personal loans bad credit are not actually an alternative. If you need this type of credit, you probably have a negative credit history, and this might be your only opportunity to get some money fast. Those types of credit are also named no credit check personal loans, because the bank or the financial institution does not check your credit score for approving the loan. Well, this happens only in theory. The bank will surely check your financial situation, but they might approve you the loan even if you have a negative situation.

Why is the no credit check personal loan…checked?

The bank will approve you this type of loan if you have negative records from the far past, especially since the financial recession in 2008. If you have a bad situation because of a new credit or because of a recent credit card, you will be rejected. Even if you are approved, you will have to pay more for the monthly rate, as the bank will consider you as a client with an increased level of risk.

What should I expect? When you apply for an unsecured personal loans bad credit, the bank would interrogate the Credit Bureaus, with the goal of establishing your credit capacity. The most important details that they would look for are the ones about unpaid credits from the past, credit cards remained uncovered and unpaid bills. In some cases, the bank might refuse approving the credit because of those problems.

How long would the records exist?

Depending on the gravity and the sum that you have not paid, the records would be kept by the credit bureau for 4-7 years, from the money when you have covered the debts. Please be advised that the records would not be erased if you don’t pay those debts! If you don’t pay the credit, and you wait for four years, hoping that somebody would forget about it, you are wrong. During this time, if you are able to access another credit or unsecured personal loans, make sure to pay it in time, because the delays for the new credit are recorded in the same bureau.

How to remove negative records from the credit bureau

You cannot “remove” records from the Credit Bureau, because those depend on your payment behavior. If you are careful with the new credits and you are able to pay those in time, the negative records from the past will start to disappear. Your credit score will improve slowly but safely, and after a while, when you also pay all your ongoing debts, you might discover that you have the cleanest credit report in the world!

The bank has to announce you with 15 days before reporting you to the credit bureau for unsecured personal loans. Any record made by the bank without noticing the client is invalid. Check those details and make sure that you were announced. Otherwise, the negative records must be removed from the Credit Bureaus, on the expenses of the bank. Of course, you will have to prove that you were not announced about this matter.


About the author

Sherrlene Reno

Relationship Psychology Degree At University Of Cal State Northridge. Currently has own current practice in the fields of Relationship And Partners in Motivational Psychology.

Add Comment

Click here to post a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get more stuff like this
in your inbox

Thank you for subscribing.

Something went wrong.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 66,955 other subscribers

More From Web