For most of us, the reality is that our credit status is less than perfect, earning us a bad credit rating. Getting an unsecured loan can therefore be tricky. However, for those who have been unfortunate enough to have been taken to court over non-payment of debts, or to have had to get a bankruptcy ruling, the challenge is even greater.It is difficult to argue against the idea that the chances of getting high risk loans approved without security are minimal. After all, lenders want to be assured of getting their money back on time. But it is also true that there are options available to those applicants whose credit history means they are branded with the high risk tag.But there are several ways to ensure that these chances are improved, including seeking small loan sums, searching amongst the less traditional lenders for better deals and getting a cosigner to guarantee repayments. Short of making unsecured loans guaranteed to high risk borrowers, these steps increase the likelihood of making a successful application.Small Loan SumsThe reality of having a high risk status is that unsecured loans of any large sum is very difficult to get. This is because, with such risk involved, lenders are unwilling to put up large sums of their own money knowing that they might lose it. In the absence of any kind of collateral, there is no chance of compensation for a defaulted loan.The best way to get high risk loans approved without security is to seek only a small sum, something that the lender will not feel upset about. Perhaps just $1,000 to start with, and once that is repaid, and credit scores improve, larger sums can be applied for. The progress made is gradual, but in order to get unsecured loans guaranteed to high risk borrowers baby steps are necessary.The Online OptionIn general, unsecured loans are offered by lenders at higher interest rates, and when it comes to loans to high risk borrowers the rates can be very high indeed. But as with everything, shopping around can result in far better deals being secured.Online lenders are well known for offering better deals than more traditional lenders, most of which prefer to avoid offering high risk loans, approved without security. Such lenders will require proof of employment, proof of income and also bank account details to permit automatic repayments.However, they often offer credit check free loans, so the credit status of the applicant is irrelevant anyway. While it is impossible to find unsecured loans guaranteed to high risk borrowers, this is as close as anyone can get.Use a Cosigner as a GuarantorProbably, the best way to ensure approval on an unsecured loan is to get a cosigner to guarantee repayments will be made. A cosigner is usually a family member or friend, but it is important that they have very good credit scores and full-time employment.For all high risk loans approved without security, the chief concern for the lender is that repayments are made on time. A cosigner alleviates this concern because they promise to pay if the borrower cannot. So, the lender has recourse should the borrower default.Of course, this option all but makes unsecured loans guaranteed to high risk borrowers, but the terms and conditions still need to be acceptable. So, getting the best interest rate available is still important.With unsecured loans available to even those considered high risk, practically anyone can improve their financial lot.
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ABOUT THE AUTHOR
Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Bad Credit Home Loans please visit her site http://www.easyloanforyou.com
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