Many borrowers are looking for no collateral loans between 1K, 3K, 10K, and even over 100K. Many of these new age borrowers have bad credit rating as well, making it even more difficult to get approved by any bank, private lender, or loan shark. The reality is very stark when you learn about the reality of how banking institutions work on a day to day basis.

We started looking into some of the practices employed by bad credit borrowers as they try and get approved by lenders lending between 1K and 100K dollars – our findings were astonishing! Many of these lenders were not even employed, and if they were employed they made less that $1000 dollars a month take-home pay. On top of this, they had huge debts that were crippling to themeselves, and even worse – their families.

Some hard-liners will say that borrowers (consumers) deserve their bad credit ratings from over-spending and under-earning. Well, in some cases this is true – no question about it, and some borrowers make the mistake of applying with multiple banks and web sites hoping to get approved, not knowing that there is detailed data-trail of all their failed applications. The credit bureaus have a record of all the credit applications they have made in the last 7 years. Not good – not good at all, because ever time there is record of you applying for loan and subsequently being denied the loan, they see you as a high-risk borrower. It’s a bad downhill snowball from there my friends.

If you don’t have any collateral (such as house, a new car, new boat, new RV, or any kind of security) the major banks won’t even consider your application. Your application won’t even make it past the first line of defense for the lenders (being the centralized computer software system), and human eyes will never even see your desperate application. BUT, the credit agencies WILL see it, without any actual manpower exhausted by the bank’s employees. No collateral and bad credit make it pretty well a guarantee that your application will be declined in the first run at the bank’s database. There is an old saying that goes something like this,

“Broke, rock bottom FICO score, and no collateral, is no way to go through life son.”

Well OK, maybe it’s not a saying after all. Think I’m paraphrasing quite a bit there. I’m not going to get too deep into credit repair methods today, because that is subject for another day, so I will stick the collateral and bad credit issues at little bit more, for the sake of making sure this sticks in your brain.

When I see wannabe borrowers scouring the Internet, searching for “bad credit personal signature loans with no collateral, no security, no job, and no house”, I have to ask myself one question – how could someone be so silly as to think they would ever be approved for a loan under those conditions. It shows me that there are millions uninformed people who think they can maybe find a lender willing to lend them some money – SOMEWHERE out there is cyberspace. The result is usually the run around. Often the would-be borrower(s) will find multiple web sites that claim/promise to approve a loan for 1K, 2K, 3K, 4K, 5K, 6k, 7k, 8k, 9k, 10k, and upwards of $100,000 dollars, and you don’t even need a great credit rating, collateral, security, or a job. NOT a chance my friend. The only reason they advertise such a ridiculous loan is because they know there are some people who might just be elidgible for a loan approval.

This is true too – some consumers (you know – people!) have better credit ratings than they realize, and they fall into a category which would afford them financing. The lenders know this, and they know that of you have a steady job, been living at the same address, and not TOO much current debt being serviced – then they may be able to get away with approving the loan at a very high interest rate and high opening and closing fees. Basically these lenders are your average everyday loan sharks working within the confines of your local State Law.

This does not mean you every want entertain this kind of loan shark loan, but it is nice to know that your credit rating is not so bad as to make the bankers wretch when they see your application (well, I suppose computers don’t wretch – they just freeze) If you credit is good enough that the banks and lenders will consider your application, this is good news, but no reason to start dancing around the velvet ropes at your local bank. This means you just have less work to get yourself “approvable” than someone who has absolutely no credit, no job, no collateral, and frankly no hope. You still need to clean up your “financial act” and start earning more and spending less. I know – I know, it’s hard, and you’ve had some bad breaks along the way – this doesn’t mean you should be making excuses though, because regardless of your personal financial situation, you are going to need to bring your expeditures and your earning(s) back into balance. Back into balance for good!

So if you are one of those wannabe borrowers out there who are lurking around the Internet applying with every online application from you come across – stop! Stop trying to borrow, stop spending on anything that is NOT a necessaty, and start learning of new ways to earn more money each month. I know this post seems harsh, but you need to understand the cold, hard, true facts, if you ever want to have some real collateral, an excellent credit rating, a very high FICO score, and 10K (or more) in your savings account.

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