Unsecured Loans for People Without Collateral Do Exist, and Are Available Fast

One of the biggest issues when seeking to borrow from a lending institution is whether or not any collateral can be found to enhance the application. For many of us, it is almost impossible to find security that matches the value of the funds required. But unsecured loans for people without collateral are available, and can be approved if certain criteria are met.For many people, the hope of getting fast loan approval on relatively large sums, like $10,000, is a real challenge. The family jewels may not quite reach that value, the car may be too old and there may be no available equity on the home.But just because there is no collateral does not mean that an application for an unsecured loan is doomed, or that the chance to secure much needed funds is gone. So what are the options?Find a CosignerThe most effective thing to do is to find a cosigner to guarantee the loan. The effect when applying for an unsecured loan for people without collateral is to all but guarantee approval. The reason is that the repayments are guaranteed, which is easier than turning an item of collateral into cash.However, not just anyone can be nominated as a cosigner. The right person for the job must have an excellent credit score, and must have a reliable source of income that is large enough to handle the extra responsibility if called upon. And while fast loan approval may be likely if the cosigner ticks all of those boxes, cosigners would certainly prefer not to be needed.Usually, a family member is the right choice, as there is a loyalty between the two parties, but a boss or friend could also be accepted. Perhaps the biggest benefit of getting a cosigner for an unsecured loan is that the interest rate lowers, reflecting the added security provided.Consider Smaller LoansIt is not always necessary to get $10,000 in one sum. In terms of application content, an unsecured loan for people without collateral may require a breakdown of the purpose. It is worth considering then whether a staggered approach would be practical.What this entails is carving up the total sum to identify the most pressing needs. This is particularly useful when the purpose of the loan is to clear existing debts. Fast loan approval is more likely with smaller loan sums, since the perceived risk is lower.So, for example, one unsecured loan of $2,000 can be secured to pay off credit card debts, and, when that is repaid, another loan of $3,000 can be secured to clear an auto loan balance, perhaps. And with each debt that is cleared, the terms of the next loan is improved because of the improved credit rating.Payday LoansThe attraction with payday loans is chiefly that they require no credit checks before being approved. This is because they are granted against an upcoming paycheck and nothing else. So, when seeking small unsecured loans for people without collateral, they fit the bill, perfectly.There are some factors to consider however. First of all, the interest rate is very high, with lenders charging anything between 10% and 30% for their loans. The loan amounts are also very low, with a maximum usually around $1,500. This means they are perfect for dealing with one specific small debt at a time and, given the fast loan approval rate, are equally perfect for emergency financial problems.But there is also high pressure to repay these loans. This type of unsecured loan is usually just 30 days long, with the repayment taken in full from a paycheck. This means that regular monthly obligations might be threatened.