So you want to take out an unsecured personal loan. You figure the process will be an easy, straightforward one. You head to your bank or credit union, and you fill out the application.
Lo and behold, after a period of waiting, you discover that you have been denied the loan. Why? And just as importantly, why is it so difficult to qualify for an unsecured personal loan? Read on to gain some insight into this matter.
It’s All About Risk
Unsecured loans granted by banks and other traditional lending institutions have specific credit requirements that can make it challenging to qualify for these types of loans. Such loans are impacted by risk; a bank will not give you an unsecured loan if they feel you are too high of a risk.
In other words, the lending institution will not be too keen on giving you an unsecured personal loan if they see YOU as high risk in terms of paying back the loan, as this potentially becomes a risky financial transaction that the bank just doesn’t want to deal with. They can find other, more qualified candidates, and they’ll choose them over you if they feel you have a poor credit score or your finances are shaky.
If they give you a loan and you fail to pay it back, they really don’t want to go through the hassle and legal fees of trying to get their money back from you. So they’ll simply reject your application and move on to someone else.
This, of course, can be terribly unfair to you, especially if you are a responsible individual who is conscientious about paying back your loans on time, according to the terms of each specified contract. But how are you going to convince the bank that you’re a qualified candidate? They’ve made their decision, and whether or not it’s a fair one, it usually is final.
Your Credit History Matters
You can be sure that when you apply for an unsecured personal loan, the lending institution will take a close, hard look at your credit history. Any little discrepancies will be scrutinized carefully. Even if there’s a perfectly good reason as to why one of your payments was late, or you had to default on a loan, your bank will not take a chance. They’re not a charity, after all! They’re a business, and like just about any business, they want to make as much profit as possible through their day-to-day business operations with the least amount of hassle involved.
In short, a lending institution wants to ensure that the borrower will make monthly payments on time and won’t default on the loan. A person’s credit history can shed some important light on the borrower’s potential behavior. Any negatives, no matter how slight they may seem to you, can be a huge deterrent to the bank.
When You Can’t Get A Loan From A Bank
If you have applied for an unsecured personal loan from a lending institution and your application has been rejected, you can try another bank. However, if your own bank won’t give you a loan, you may find it very difficult to secure a loan from another lending institution you’ve never dealt with before. What do you do?
We invite you to check with Your Loan Depot, which has locations throughout Texas, including in Stephenville, Corsicana, Mansfield, Houston, and locations near Fort Worth and Dallas, among others. We can check to see if you qualify for one of the fast-cash loans we offer. These loans come primarily in one of two types: payday loans, and title loans.
For a payday loan, you may be able to get up to $1,000 quickly, if you qualify. This sum can tide you over until your next payday. As you receive payments from work, you will make payments to us until you’ve paid back your loan, plus interest and fees.
For a title loan, you may be able to obtain up to $5,000 or even more, depending on the type of vehicle that you own. Your title serves as collateral to help you secure the loan. We will return your title to you once you have paid everything in full, as specified in your loan contract and associated documents.
You May Qualify Even If You Have Bad Credit
Whereas a typical bank may not give you the time of day if you have poor credit, we at Your Loan Depot are willing to talk to you. We operate differently, focusing on either your paychecks or your car’s title when we consider candidates for our loans. So your credit history really doesn’t matter too much, since it doesn’t factor in.
Your Next Step
To start your process with us, first take a look at our locations page, where you will find all of our offices throughout Texas. Find the location nearest you, and give us a call. Our representatives can guide you, recommending either a title loan or a payday loan depending on your specific circumstances.
Do you live in or near Fort Worth or Dallas? You may wish to contact our office in one of the following locations: Stephenville, Mansfield, or Corsicana.
Closer to Houston? Reach out to an office in one of the following cities: Conroe, Humble, Pearland, Tomball, Rosenberg, or Houston itself.
If you need a loan but you haven’t had much luck with traditional lenders, contact your nearest Your Loan Depot office today!