If you have perfect credit and a job, getting a an unsecured loan should be no problem. You can practically drive down the street and walk into the first bank you see and take a loan to meet your needs. Your credit shows how much you owe other institutions and how dependable you are in paying your bills back on time. I would like to share a story with you about my younger years explaining to you how I got myself into some credit trouble and what my options were:
A Personal Story
Ever notice when you’re checking out at a department store and they (9 times out of 10) ask you to apply for their credit card for immediate savings? Well, when I was 18 and unknowing exactly what credit was, I applied for the card and saved 20% on my new Tommy Hilfiger sweatshirt.
The high school I was attending didn’t teach me anything about credit and my family was miserable with money. Always wanting the new gadget or gizmo and never purchasing the item outright, but instead my parents would put the item on credit. This set a very bad example for me at an early age, so I took that Macy’s credit card and maxed it out within the following month so fast it would make your head spin. Now for not having any credit and only being given $100 line, it wouldn’t appear to be all that detrimental, however, the problem wasn’t with how much I owed, it was paying the bill on time. I was irresponsible, I would place the bill to the side thinking that I’ll pay it another day, the due date would come and go and I tore my credit to shreds. So that is how I started out my life in the financial world and it was an uphill battle for a long time
Now not coming from a family where money was no issue, there were some things that I was going to have to pay for. My 1989 Mustang GT sure had a lot of “get up and go,” but also would blow a gazette on numerous occasions. Now only having the income of whatever the ice-cream parlor would give me, there were times that I would have to come up with a substantial amount of money that I simply did not have – I had to take out a loan.
I approached my local back where my mother had opened a checking out for me a couple years earlier about taking a loan out for my much needed car repair. I filled out an application and they checked my credit.. I was called back up to the banker’s desk and was given the bad news, “Sir, we are not able to approve your loan at this time.” I asked, “why would there be a problem?” “Sir, your credit score is a 480 and it doesn’t appear that you have ever paid a bill back on time.” I told her that I did pay back everything I have ever owed anyone and then she went on to say that they only way that she could approve my request for a lone is for someone to co-sign for me.
The moral of the story is that it’s practically impossible to obtain unsecured personal loans for people with bad credit. If you’re stuck in this predicament, there are three things that you can do:
- Borrow the funds from friends or family
- Have someone co-sign for the loan (they will be responsible for the payment if you don’t make it)
- Get a Paycheck advance which is a very simple online loans process and great for getting the money you need in your account quickly”
What did I end up choosing to do? I didn’t have friends or family to borrow or would entrust me to make the payments on time, so I got a paycheck advance and it was expensive! You only want to go this route with this is your only option. These loans can be known as predatory and you always want to shop around, compare rates and fees.
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