Bad credit can make it horribly difficult to find a loan when you have an urgent need to borrow money. More and more people have bad credit because of the number of job losses and layoffs that are being seen in this country, due to a weak global economy. Others still have experienced credit problems that are directly related to an illness or injury that prevented them from working.
Regardless of the reason for your bad credit, your need to borrow money is real just the same, and there are guaranteed unsecured personal loans out there that can be a real lifesaver for you and your family during these economic times of difficulty. The guaranteed unsecured personal loan does not require that you own your own home or pledge collateral of any kind in order to receive needed funding.
Guaranteed Unsecured Loans Up To $ 2,500
The guaranteed unsecured loan for bad credit is also known as the bad credit cash advance. This type of loan is written for a term that usually goes no longer than your next scheduled payday, which is why many people refer to this loan product as a payday loan. You need not be working in order to qualify for a guaranteed unsecured loan for bad credit; in fact, many people who take out this type of loan are recipients of monthly benefits from the government, like Social Security, SSI, or retirement.
In order to qualify and borrow money with this loan, you will need to provide the lender with a valid checking or savings account number and proof of your income. The lender will also want to know what other bills you pay each month, in order to determine your available disposable monthly income. Most of the lenders of this type of loan expect payment to be made in one payment that pays the entire loan off in full. There are some lenders, however, that will arrange for you to make as many as six payments on a cash advance guaranteed unsecured loan for bad credit.
How It Works
The way that a guaranteed unsecured loan for bad credit works is simple. You will present the lender with a postdated check that is written in the amount that you wish to borrow, plus fees and interest charges that are collected by the lender. When the date on the check arrives, the lender will deposit the check for repayment. If you are doing an electronic check, you will present the lender with a postdated electronic check by giving them your ABA bank routing number, your account number, bank name and the number of the check that you wish to use.
Again, when the date that the payment is due arrives, the lender will debit your bank account for the amount that is agreed upon. If you do not have sufficient funds to cover the check when it arrives, the lender will redeposit the check and possibly charge an additional fee. Your bank may also charge you an additional fee for bouncing a check, called an NSF or non-sufficient funds fee. For this reason, it is important that you make sure that you understand the terms of the secured unsecured loan for bad credit and are prepared to make the payment (s) when they become due.