Preparing Your Story

The key to the unsecured personal loans is understanding that they are personal.  If your credit is bad you will have to lay out a very specific reason that this need for credit is unique.  The lender doesn’t want to give money to a chronic borrower with bad credit, that is almost a guarantee that the person eventually won’t be able to make their bills.  The need can be heat for your home, or a car repair, or any of those needs that pop up in life that are critical.  Even if this isn’t the case I’d fudge my story that way.

The other part of your story that you will have to have stone cold is the plan to pay them back.  Take the time to work out the payment cost for a reasonable interest rate before you walk in the door.  The banker will be impressed that you took the time to understand the process.  By making a large deal about how important it is that they get every penny back and that they’ll get paid before the dog eats, or other terms of proof.

Hitting the Street

You’ll want to dress in the nicest clothes that you own and just starting going from bank to bank with your story.  Unsecured loans are more likely to be given by small local banks.  If you live in a small town you may have a better chance because the bank will go off the fact that everyone knows everyone else’s business to keep you honest.  Just politely ask to wait to see a banker or better yet, make an appointment ahead of time.

Know Your Credit Report

This last part is about being upfront about your bad credit incidents in your past.  The banks already know about your bad credit issues, what they want to know are what have changed in your life so they can feel more comfortable that it won’t happen again to their bad credit unsecured loan.