If a credit user defaults on an unsecured loans, he opens himself up to collectors who have a financial stake in collecting the debt according to Debt.org. Collection agencies are skilled at pressuring people to repay their debts, and some are not above violating consumer rights.Know More
When it comes to unsecured loans, there isn't any collateral for the creditor to take in order to satisfy the loan. Most places will offer a grace period before they start charging late fees and calling. At 30 days late, they report it to the credit bureaus, and the responsible party's credit score takes a hit. At 60 days, there is a risk of more fees, an interest rate hike if applicable and more persistent phone calls, plus the credit hit. At 90 days, the account will be moved to the company's internal collection department, and credit is yet again affected. Between 120 and 180 days, the debt will be written off, which means the creditor counts it as a loss and sells it to someone else.
The collection agency now has a vested interest in trying to obtain a payment. Sooner or later, the collection will reach an attorney and sue after a final warning. If the debt is deemed valid by the court, then a judgment will be issued, and the defaulter will be responsible for the debt and the legal fees. A lien may be placed on the debtor's house, and bank accounts could be levied, depending on the judgment.Learn more about Personal Loans
To secure a loan while unemployed, search online for lenders that specialize in high-risk loans and have programs that do not require employment information on their applications. These applications can be completed in minutes. Be prepared to provide your address, Social Security number and bank account information.Full Answer >
In order to get a low-interest personal loan, applicants should research financial institutions that offer low-interest personal loans, compare loan offers and increase their credit rating as much as possible before applying. If the applicant is willing to put up his house, car or another type of collateral, he might be able to get a lower interest rate on a loan.Full Answer >
Getting a loan without a bank account is not impossible, but the lack of a savings or checking account rules out loans from most traditional lending institutions like credit unions and banks. HowStuffWorks explains that lenders view a consumer's lack of a bank account as a liability since those who do not have bank accounts are often unable to obtain one due to financial hardship or a bad banking history.Full Answer >
People without jobs can go to pawn stores for loans, get home equity lines of credit or ask someone to co-sign on the loan. However, it helps if they have other income sources, such as unemployment or alimony payments. There are also no-documentation home mortgage loans.Full Answer >