I Need Debt Consolidation - Can I Qualify for an Unsecured Loan?
Contributed by Melanie Vannuys
Before I Decide If I Need It, What Is An Unsecured Debt Consolidation Loan?
An unsecured debt consolidation loan is a loan for which no collateral is required to qualify for the loan. However, because you're not required to put up any personal property for security, there is a certain amount of risk to the lender, thus making these loans harder to obtain, especially with less-than-perfect credit and/or a ton of personal debt. But if you only have a small amount of debt, say $5000 or under, this type of personal loan should do the trick.
Keep in mind that if you do choose a to obtain an unsecured loan for your debt consolidation, loans of this type can drop your credit score, so make sure you really have to take this route.
Can I Still Qualify For An Unsecured Debt Consolidation Loan If My Credit Is Not So Good?
Honestly, probably not. It's ironic, really. Lenders know that you're having difficulty paying your bills, so you think that they will look at your applying for a loan as a cry for help - but they don't. All they see is that you couldn't pay the bills you had, what makes them so sure you can pay their loan back? They don't really care what got you into the position of needing a loan to pay your bills in the first place. All they see is the here and now.
If you've lost your job and found a new one, chances are they aren't going to give you the loan because you haven't been at the new job long enough. It's a vicious cycle and one that can only be avoided through budgeting your money.
