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Small Unsecured Loan - Where to Find a Small Unsecured Loan

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Finding a small unsecured loan for any purpose is relatively easy today. These types of consumer loans are available globally and in many local neighborhoods. The Internet has opened up loan possibilities for many people who previously may have had a difficult time borrowing any amount of money or obtaining loans from traditional lenders.

There is one caveat to remember when borrowing from quick cash lenders. The loans they offer are not government regulated, as are loans from banks, credit unions or other traditional finance businesses. They are allowed to set interest rates or fees as high as they wish. The good thing is that with plenty of tough competition, none of them can run away with sky-high rates. Many fall into the range of charging $15 to $25 per $100 that is borrowed. Some charge much higher rates, especially for instantly available loans. A typical loan period lasts until the next pay date, usually about two weeks, but if a person is on retirement or disability and is paid only monthly, the loan period would be that long. If looked at as an APR rate, the interest rates would begin around 400% annually, and go up.

In a local neighborhood, storefront lenders frequently are located in strip malls. It is convenient to park in front of the store and run in to get a loan. These are called “Cash Advance” or “Payday Loan” stores. They may also offer check cashing for a fee, and a few other smaller financial services like sales of pre-paid credit cards. Their primary business is making unsecured loans, usually in small amounts from $100 to $1500. Loan amounts are pegged to the income of the borrower, and some history with that lender. The only collateral involved would be a filled out check for the transaction that the lender holds until repayment is made. Cash is presented on the spot and repayments are also done in cash, in person, on the due date.

Many people who have bad credit, no credit, or poor credit histories have no other resources to go to other than fast cash lenders. People who have less than stellar credit scores are attracted to fast cash lenders partly because these lenders do not take into consideration anyone’s credit history when making loan decisions. The payday loan industry does have its own internal system for keeping track of borrowers who fail to make timely repayments or who need to resort to a repayment plan. The reason they do not look at credit history records is because they are not extending credit to borrowers; they are only making a small unsecured loan.

Another popular option for borrowing an unsecured small loan would be to check online websites for a cash advance loan. Online lenders cannot present cash on the spot, but they can offer speedy loans within several hours for a larger fee. Loans are electronically deposited directly into the bank account of the borrower, and repayments are done in just the opposite manner with an automatic electronic withdrawal from that bank account. An online website application will ask for all needed information, which consists basically of employment information, personal identification information and bank account numbers. Approvals take minutes to within an hour in most cases. These loans are very convenient because the borrower can take one out quickly, without driving around town. Online loans are also very private, and can be done from a home computer, with no one privy to the borrower’s business.

If a borrower should be unable to repay their loan on time, the written check or ACH withdrawal will be processed. If funds are unavailable, collection efforts will ensue just as a creditor would process a bounced check. The lender may then tack on additional fees, and the bank that the check is drawn on could also add bounced check fees to that borrower’s account. Bounced checks will be sent on to a collection agency, and that borrower will no longer be able to take advantage of fast cash loans.

Finding a small unsecured loan is very convenient, fast and easy. These loans are yet another useful financial tool that most persons are able to use, regardless of credit history.

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