#loans for people with bad credit
$1K-$10K Unsecured Personal Signature Loans Bad Credit in Philadelphia, Pa
For the state of Pennsylvania we will start with borrowers requesting unsecured personal loans between $1000 and $10,000 (in Philadelphia). Of course, it only makes sense that we would cover this largest PA city first. We have four different loans to discuss in this publication. One for $3000, one for $5000, one for $7000, and one for $10,000, respectively.
Due to the fact that we are talking about the approval of purely 100% unsecured personal loans, with absolutely no collateral or security on the note, the APR levels reflect the risk that the lenders are taking.
The $3000 loan was finalized at an APR of 25%, while the $5000 loan was finalized at a 33% APR, the $7000 loan finalized at an APR of 22%, and finally, the $10,000 loan was approved at an interest rate of 43%.
Recently we looked at what banks are doing in the unsecured lending sector (of lending products), and most big banks are now (at the time of this writing) only funding and approving about 1% to 3% in unsecured products, as compared with what they used to lend out in unsecured funds. Before the market crash of 2008/2009 there were many lenders and banks (and credit unions) that were providing unsecured funding for customers in excess of 25% of their business models. This is a dramatic pullback by personal banking establishments, and has left millions of Americans scrambling to try and find some source of unsecured cash.
The reason conventional banks have moved away from the unsecured lending market is because they no longer want to take on the risk, regardless of the high premiums and interest rates they charge on their products. Why because they were seeing some high percentages in the charge-offs and defaults.
This has left a wide swath of opportunity for payday loan providers and cash advance companies, and they have certainly taken advantage of this. Many different borrowers are now trying to find unsecured loans with peer to peer websites, and private lending institutions still willing to provide high risk loans to consumers who need/want debt consolidation, an rv loan, boat loan, home loan, student loan, and all-purpose loans. Of course, these high risk lending entities charge higher and higher interest rates as time goes on because they know they don t have any competition from the major banks and lending houses. This puts many consumers at a disadvantage, in that they can t really find low interest deals anymore.
Some of the lenders (that we allow access to our database) do provide loans with reasonable interest rates, but there are still some that only offer interest rates exceeding 25% APR. This is why we encourage applicants to not just except any loan offer they are proffered, and to shop around for the lowest interest rates possible otherwise they just end up furthering their bad high interest debt into the future, which can lead to personal bankruptcy and a temporary financial ruin. The key word here is temporary. and that has to be kept in mind if you are in financial trouble. We always tell applicants who have poor credit ratings to remember that their financial situation is just a temporary state. and with time, patience, and a plan, they can navigate their way out of the nightmare of a bad credit rating and personal financial insolvency.
We try to publish information about those borrowers that find low interest solutions to their financial shortfalls, so that we can encourage people to shop around online and at the local level until they find a willing lender who will give them an unsecured loan.
However, it would be disingenuous if we didn t publish some of the loans we see approved every month that do actually carry stiff APR, reaching heights of 50%. In some cases, applicants need to borrow money on a short-term basis for only a few weeks or a few months. They are willing to accept high interest rates on their loan product(s), because they are going to be seeing a windfall of cash come their way from some other source in the very near future.
You see many small business owners in this category who are gambling on the hope that they will be earning a substantial amount of money per month in the very near future, enabling them to pay down their high interest debt quickly, and without issue.
Of course, you never want to take out an extremely high APR loan for longer than one year, and you certainly don t want to take out a high APR loan when there is no chance of paying it off quickly. These are often called hard money loans. but that lending product has been distorted by definition in the last decade due to the new lending nomenclatures we see being created on the Internet. Traditionally, hard money loans are loans that real estate speculators and developers seek out to find a new development or property purchase that they can leverage (or flip) within a matter of months.
We strongly encourage our visitors not to borrow money at these high interest rate levels unless they know for a fact that they will have a windfall of income coming their way during the next year.
With all of this in mind, below are four different loans applied for, and approved, that carry extremely high interest rates, and they all originate out of Philadelphia, PA.
$2500-$3000 Unsecured Personal Bad Credit Signature Loan in Northeast Philadelphia, PA
Our first high interest loan is an unsecured loan for $3000 over a short term of three months. This borrower requested cash to use for traveling across the country to visit family for the holiday season (December/Christmas) and to pay off some debt which was causing her to get a constant stream of phone calls and nasty letters in her mailbox from collection agencies.
She felt that she could pay off all of her debts and visit her family with a $3000 loan, and she would have enough money from some investments that she was confident in. She had invested $1000 in the stock market six months earlier, and at the time of her application she was 100% confident that she would be able to sell her stock and make a profit of over $7000 within the next month. Of course, this is a gamble, because you never know what can happen on the stock market.
The APR that this borrower asked for was 9%, but the actual finalized interest rate on the $3000 ended up being 25%. This created a monthly payment of $1027 per installment, and a closing fee of $43. The total interest paid to the lender over the three month period came to $125, and this is not really a big deal as long as she pays back the lender in full at the end of three months.
This borrower had a FICO score of 580 at the time of application which certainly put her in the position where she was not going to qualify for an unsecured loan with a conventional lender. When she was applying, she was not aware of this fact, and if she was aware of how bad her credit score was, she could have saved herself a lot of time and aggravation.
Her bank is the Trumark Financial Credit Union on N. 5th St. in Philadelphia, PA. She applied there for a $5000 unsecured loan, and was declined. She then asked for a $3000 loan, which is all she really needed, and was declined for that amount as well. This applicant lives in the Kensington area of Northeast Philadelphia, and also works in the area.
Since her bank wouldn t approve her for an unsecured loan, she tried to get approved at the PNC Bank on North Broad Street, with the Hyperion Bank on W. Girard Ave. and at the Citizens Bank on W. Lehigh Ave. none of these banks would approve her for any kind of financing.
The one thing going for this applicant is that she had/has a good full-time job working in a jewelry store in Northeast Philly, kitty- corner to Washington Square. She has been working there for over five years now and loves her job. She gets along great with her employer and her coworkers and they are very happy with her performance as an employee. Because of this, she figured that there would be some lender out there that would approve her for an unsecured loan based on her monthly income only.
Unfortunately, her credit score with TransUnion, Equifax, and Experion, was much too low for any conventional bank to qualify her for approval.
She ended up using our website to apply for an unsecured loan of $3000, and as explained above, she was willing to accept a temporary APR of 25% on the note. The good news is that she ended up selling her stock and making a profit of over $12,000, and was able to easily pay off the $3000 principal and the interest charges of $125.
This lender provides unsecured loans to people who have bad credit ratings and lends money to borrowers exclusively in the State of Pennsylvania, with their highest ratio of loans going to consumers living in the Philadelphia area. The most recent loans they approved at the date of this publication were given to borrowers living in the neighborhoods and areas of Kensington, Fishtown, Fair Hill, Ludlow, Rockledge, Jenkintown, Lawndale, and Willow Grove, all in the Northeast of Philadelphia, PA.
Of course, this lender also approves loans for people who have poor credit in all surrounding areas of Philadelphia, but we chose them for this publication based on the fact that their most recent loans went to people in this area of the city (NE Philly)