Bad Credit Unsecured Loans For Credit Card Defaulters

If you are like most of us, you may have one or more credit cards in your wallet that started out sounding like a good idea - until the introductory period passed and you got slammed with a higher interest rate than you had expected. Many cards start out with a zero percent interest, but quickly convert to a higher rate once a certain period of time has elapsed, or you send in a payment that is a few days past the due date. This practice is rampant in the credit card industry, and is how some unscrupulous card issuers make their profits.Many of your cards may now be in default and perhaps you have bad credit because of them. The best solution for you if you have out of control credit card debt that requires a huge chunk of your income to make the minimum monthly payments is to take out an bad credit unsecured loan to pay off your credit cards for good.Cut Up Your Credit CardsA bad credit unsecured loan is a loan that can pay off each card issuer and allow you to avoid the interest that is tacked on each month. Your new loan would pay off the principle amount you have charged on each card in full and then you would repay your bad credit unsecured loan servicer each month. Doing so will save you tons of interest and may even keep you out of bankruptcy.Keep More Money In Your PocketBecause your bad credit unsecured loan is a risky venture for the lender you must be prepared to pay more interest than a borrower with good credit. However, the interest you pay will always be less than the interest that you are currently paying on your credit card(s), and as an added benefit, your monthly payment will be much less than the combined payments you might have been making on several cards. This means that you can keep more of your take home pay to use for other purposes.Furthering Your Approval ChancesYou might want to consider applying with a cosigner to reduce the amount of interest that you are charged on your bad credit unsecured loan. A cosigner can be anyone who believes that you are truly capable of repaying your lender and agrees to make payments on your behalf if your bad credit unsecured loan should go into default status. Many bad credit unsecured loan servicers are willing to release your lender from liability once you have made a certain number of payments and they have built up trust in your responsibility as a borrower.You might also check online to find the bad credit unsecured loan that you need to pay off your high interest credit cards. Online lenders offer easy application processes on secure servers, and also tend to have a better rate of approval for those with derogatory credit files. In addition, your online lender may offer a better interest rate on your bad credit unsecured loan than you will find anywhere else.