You are most likely to qualify for such loans if you have a good credit score. However, some online lenders also offer unsecured personal loans to individuals even if they do not have good credit. You may get an unsecured personal loan up to $5000 even if you have below-average credit score. In most cases, these lenders will approve your application if you have an above average credit score, consistent income, and are above 18 years of age. The income can be from running your own business, from a job or even disability benefits or other kinds of benefits. The only other thing you need is a checking account.
An unsecured loan is the best option for individuals who want money quickly as it takes less than five minutes to complete the application form and in most cases, the decision is made on the spot. In most cases, the lenders transfer the funds to the bank account of the applicant within 24 hours if the applicant qualifies.
Benefits of Unsecured Personal Loans over Short-Term Loans
1. Lower Interest Rate: An unsecured personal loan will always have a lower interest rate as compared to the other short-term loan alternatives which means you will save quite a bit of money.
2. Longer Repayment Period: With an unsecured personal loan, you will get a lot of time to repay your loan. The repayment period can stretch from several months to multiple years depending on the lender.
3. No Collateral Needed: You do not need to provide any kind of collateral in order to get an unsecured personal loan.
