As a result of the financial crisis, getting authorized for any type of credit is a little more difficult than it was in the mid-1990s. Actually, one could say that the financial crisis was caused in part by excessive lending and a lack of repayment of the time. Today, financial analysts realize that lending to anyone, no matter what their financial situation, is probably not the best financial business advice for a lending company.
Financial Institutions Have to Make Loans
Still, lenders have to make loans and a lot of people are out there who have had financial issues. Actually, there are probably just as many loans today as there were in the mid-90s, but they are classified differently. There is a loan option appropriate for every individual, even someone who has had prior financial problems such as, the inability to pay back loans, late payments, and even bankruptcy. However, not all lenders cater to all consumers, as they did in the past.
If considering a personal loan from a bank, you will probably need to have good credit, and you will also need to show your ability to repay the loan. Proof of income, bank information, references, and even collateral to secure the loan may all be required.
Special Personal Loan Lenders
This type of lender specializes in the unsecured loan. As such they often charge higher interest rates than the typical bank lender. Even so, many consumers opt for this option because it is an easier loan to qualify for and requires less security.
Does This Mean I’ll Get the Loan?
Predicting whether a loan will be authorized or not is difficult, as it involves knowing your income, situation, the company you are applying to, and the amount you want to borrow. However, based on research of the results pertaining to a lending company that specializes in short term loans, this is often the easiest way to get authorized even for people that have had prior financial issues. The lending agents are friendly and do their best to get you the short term loan you need. The authorization process only takes a few short hours and the money is available with 24 hours.
There are No Guarantees
No one can really say for certain whether you qualify for a short term loan or not. If they can without your filling out an application, then that is certainly NOT a company you want to do business with. The only way to find out whether you qualify is to apply. In most cases, a loan from a personal short term lender is authorized depending on your financial situation, ability to pay the loan back, proof of employment, bank information, and to a degree your credit history, although many mishaps are overlooked.
The application process for unsecured personal lenders is very simple. You can fill out a short application in person or online and you’ll know whether you are approved within an hour or two at the most.
Peter Coppola is a personal finance and insurance researcher. He enjoys writing for various personal finance blogs. Click here to learn more about short term finance options.
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Category: Money Basics