Where to Find the Best Unsecured Loans? Low Interest Rate Loans for Borrowers with Different Credit Scores

The best unsecured loans provide an affordable way to borrow money for those who don’t wish or who are unable to provide collateral. Collateral is often necessary in order to benefit from low interest rate loans, especially if the applicant has an adverse credit history. Should missed and late payments be a problem, a bad credit history loan may still be possible. It is important to note that the terms won’t be as competitive.

Best Unsecured Loans

The most competitive rates will only be available to individuals with an excellent credit score rating. An improved FICO credit score is fundamental to receiving approval because the score is indicative of the risk of default posed to the lender. Bad credit will normally show on a credit report for seven years, although this can be as high as 10 years for chapter 7 bankruptcy.

Prosper Loans

Prosper is a peer-to-peer lender offering low interest rate loans to private individuals. This means that people lend to people in an open marketplace. The best unsecured loans will be offered to borrowers who fall into the A* and A classification. However, there are still bad credit history loans available on market leading terms. The borrower will be given an opportunity to explain their personal circumstances.

Loan From a Credit Union

Individuals who are finding it difficult to get approval for credit may be able to get approval from a Credit union. This is because they operate for the benefit of their members and not profit. A careful assessment is made of personal circumstances and the individual’s ability to keep-up with repayments. The borrower will also be offered non profit credit counseling in the event of financial difficulties.

Private Bank Loans

Whilst many consumers sign-up to the first loan they find, this is not a prudent strategy. Using a website such as Moneysupermarket.com allows the individual to trawl the market for the best unsecured loans based upon their credit history. A list of low interest rate loans will be provided based upon affordability. It is important to scrutinise the T&C’s of each loan prior to making a credit application.

It is important to be realistic when applying for credit as each search will show on a personal credit report for a 12 month period. Don’t apply for loans that are unlikely to receive approval as the best unsecured loans will only be available to those with good credit. However, bad credit history loans are still available on competitive terms from Prosper loans or a Credit Union.

Understanding Common Credit Card Terms

It is very easy to get into credit card debt if you do not understand some of the basic credit card terminology. It may sound simple, but understanding just some of the basic credit card terms may help you to use your credit card more wisely and perhaps result in some savings too.

How Credit History Affects Credit Card Status

Credit cards are issued to holders based on past credit history and credit score. In the United States, credit history is recorded by credit reports of three major credit bureaus – Equifax, TransUnion and Experian. Credit scores are calculated on a person’s past history of debt handling and are calculated through factors such as employment, debt to income ratio, outstanding credit card debt and past credit payment history. The higher the credit score a person has will determine better terms, conditions and eligibility for credit. In addition, credit card limits (the amount which you can borrow on a credit card) are determined by credit history and credit scores.

Common Fees and Rates Associated With Credit Cards

Credit cards have a number of fees and rates associated with them. Some fees are unavoidable whereas other fees can be avoided or reduced, if you know how to use your credit card to its maximum potential. Some of the common terms for credit card fees and rates are:

  • annual percentage rate (APR) – is the standard yearly interest rate charged on outstanding credit card balances each month. Be aware that some credit cards have an introductory APR rate that then changes to a higher fixed APR after a certain period of time. If the balance of the credit card is paid off in full each month, interest charges can be avoided.
  • annual fee – some banks charge a yearly fee for using their credit card which can be as much as a couple of hundred dollars per year. However, some banks have no annual credit card fee
  • cash advance fee – obtaining cash via a credit card is expensive. An additional cash advance fee is charged for each transaction and interest is accrued on the amount of cash withdrawn immediately, unlike regular credit card transactions where a grace “interest-free” period is allowed
  • finance charge – interest costs and other fees added together to calculate the charge for using the credit card.

Understanding Credit Card Statements

Understanding some of the terms used on your credit card statement can sometimes be confusing; some of the common terms used on credit card statements are:

  • average daily balance – this is the method by which credit cards determine your payment due. Each day’s balance is added up and the total is divided by the number of days in the billing cycle. The average daily balance is then multiplied by the monthly periodic rate.
  • minimum payment – is the lowest amount you can pay to avoid incurring additional charges or defaulting on your credit card account. However, if you only pay the minimum amount due each month, it will take a long time to pay off the full balance, as interest charges accrue on the outstanding balance each month
  • payment due date – the date by which the credit card company requires payment; the payment must be received and/or processed by the credit card issuer by the payment date, otherwise additional charges may be incurred.

Basic Credit Card Terminology

There are many financial terms associated with credit card use. It is important to understand the basic terms, in addition to the “fine print.” Make sure that you understand the exact charges and fees associated with your credit card to avoid any unpleasant surprises when you receive your credit card statement. Understanding some basic credit card terms may save you frustration, time and even money.

Get a Loan After Bankruptcy

Post-bankruptcy Loans

You’ve filed chapter 7 and your credit score has dropped, but you can still get a loan after bankruptcy discharge. There’s a variety of post-bankruptcy loans available, but lower interest financing requires a credit score improvement. If you’re looking for a fast cash advance to help you make it through to month end, that isn’t a problem as you should be able to meet the eligibility criteria. In order to get approval for low rate unsecured loans after bankruptcy, you’ll need to fix your credit score before applying.

Where to Get a Loan After Bankruptcy Discharge

If you’ve recently been discharged from chapter 7, you’ll find that borrowing money is expensive. This is because your credit score is still at an all-time low so you fall into the highest risk category of borrower. If you want to get approval for a low interest post-bankruptcy loan, you’ll want to make payments on existing credit agreements before making any new applications. Most people find that getting credit after bankruptcy is achievable, but it may take a while before you start to qualify for the best deals.

Unsecured, Short-term Post-bankruptcy Loans

  • Payday cash advance: If you have a full-time job and your own checking account, you may be able to borrow up to $1000 from a payday lender without providing any security.
  • Credit unions: If you are a bit strapped for cash, credit unions offer unsecured loans after bankruptcy. They’re non-profit organization, but you’ll need to be a member.
  • Family loans: If you want to get a loan after bankruptcy, but want to avoid paying a usury rate of interest, borrowing money from a close friend or family member could be ideal.

Getting a Loan After Bankruptcy Discharge with Collateral

  • Pawnbrokers: If you are able to offer security, such as gold or jewellery, you can get a loan after bankruptcy. Your quick cash advance is secured against the collateral.
  • Auto title loans: If you’ve cleared at least 75% of all outstanding car finance, you may be able get a post-bankruptcy loan secured against the equity in your car. A bad credit car title loan is useful when you need a larger guaranteed cash advance, but they aren’t available in all U.S. states.

Bad Credit Score Mortgages, Car Loans & Getting Credit After Bankruptcy

You may be surprised to discover how quickly you can get a loan after bankruptcy. Despite the fact that chapter 7 causes a substantial credit score reduction, there are still lenders who are prepared to help you. Getting a loan after bankruptcy is always far easier if you provide a larger deposit and can demonstrate that the repayment schedule is affordable to you.

Chapter 7 and post-bankruptcy mortgage loans are more expensive to begin with, but you can refinance to get a lower rate of interest in the future. The more timely repayments you make and the longer the gap between the date that you filed and today’s date, the better the deals you are likely to be offered. This is because you’ve had the opportunity to re-establish your creditworthiness.

Gas Shortage Credit Card Crisis in Raleigh, NC Soaring Prices

America’s Failing Economy

Sanford, NC – I pulled into my favorite local gas station. What? No High Test or Mid-grade fuel? I wasn’t concerned as I strolled into the station to pay before pumping. Half joking, I asked the cashier, “Are you out of fuel? When will you be getting some more?” My heart plummeted when I realized the answer was serious. “Just about gone. We have only regular left and don’t know when we’ll be getting anymore. Hurricane Ike has really affected us.”

I didn’t have the money to fill up at the time. I swallowed hard and pumped what I could into my suddenly oversized car. Without hesitation, I picked up my cell phone and dialed my husband who works in Raleigh, NC. “Better fill up the car. Looks like gas is getting short.” We talked awhile and decided it was time to pull out the trusty credit card.

I finished my errands and pulled into another gas station intending to use the credit card and fill up this time. With an uncertain economy, using credit is not something we like subscribing to. I pushed the credit card into the pre-pay slot. “Please see the cashier” the pump responded. I didn’t know what to make of it. Maybe they wanted an upfront signature or perhaps an ID check. I strolled inside feeling inconvenienced and in a hurry. The line at the counter was almost too long for me to stay, but I needed the gas, especially if there was a shortage.

Like many mothers, I transport my children to and from school and activities. I had several scheduled doctors appointments for the week, not to mention the need for groceries and other supplies. It was nearing the end of the week and money was getting more scarce by the day until payday could roll in. I stood in line feeling confused and wondering what the real issue was. It couldn’t be my credit card. We tried to pay them off when we could, but never carried maxed out balances. A balance wasn’t unusual, but being tapped out wasn’t something I was familiar with.

Still standing in line, my husband called me back. The process wasn’t uncommon. He is one of the millions of overworked, underpaid men of middle America. “What do you mean gas shortage?” While I’m explaining the yellow bags on most pump handles, I arrive at the cashier. My husband hears the cashier tell me that the credit card has been declined. His next question hit like an accusation. “What do you mean the credit card is declined? Didn’t you pay the bill?” Of course, I did. I just had no idea what was going on. I stammered to the cashier, feeling embarrassed and confounded.

Back at my car, I cranked back up while trying to defend myself to my concerned husband and pulled off to a parking place. “Let me call you back. I need to call the credit card company to find out what’s going on.” I didn’t get much of an answer except you don’t have any credit available. What! I’m wondering all kinds of things. Had my husband run it up, or had someone stolen our identity? Low on gas and racing back home, I’m sure some identity theft has occurred or some major mistake has been made. I was determined to call the credit card company back.

What a day! I had a child sick with an unknown rash, a daughter in early college still needing to be picked up within the hour, almost no cash and now no credit and payday was two days away. What was I going to do?

At home, I called the credit card company back. With my husbands phrase, I panicked into the phone, “What do you mean I have no credit? We pay our bills! I had “X” number of dollars available on this card!” I accused. I could tell the day had been a long one for the customer service representative. “Haven’t you been listening to the news? There are credit card issues all over America. Your credit limit has been reduced.” What! I cut the news on. I knew the housing market was in shambles, but credit card reductions? Come on now!

What can I say? Gas is short in Raleigh and Sanford, NC. Buying on credit may not be an option to many middle-income families either. Before you pull out the credit card for gas, check your credit card first!