It is a simple truth that if the criteria of any loan application is met, the chances of that loan being approved are greatly increased. It makes sense, but it is surprising how many bad credit unsecured loan applicants would rather give it a try than prepare properly to meet the set criteria.

It seems a bit silly, even when bad credit scores are a negative factor in the application process, but it has never been an unexpected approach that has seen unsecured loans approved, bad credit notwithstanding. A carefully structured approach with each application element in order is always more successful.

The task of getting approved bad credit unsecured loans comes down to convincing the lender that your investment is safe. After all, most traditional lenders, like banks and credit unions, prefer not to take the risk when there is any semblance of doubt. But by fulfilling the established conditions, your worries are calmed down.

What the lender wants to see

In general, lenders want to know two things before agreeing to make bad credit unsecured loans: first, that repayments can be made and on time; and second, that the funds will be used for what they are intended to do. Both points are particularly important for unsecured loans where the lack of collateral increases the risk factor.

Demonstrating that repayments can be made, and on time, increases the chances that unsecured loans will be approved, despite bad credit. Of course, it is about proving that you are receiving a regular income, and this is done simply by providing a recent payslip, a photocopy of an employment contract and the contribution of a bank statement. Any of these elements can improve the application for an unsecured loan.

The second criterion to follow when applying for unsecured loans with bad credit is to demonstrate that there is a responsible purpose for the funds borrowed. This is usually not a problem when applying for a car loan or a home loan, since the purpose of the funds is stipulated in the loan agreement.

However, with personal loans, whether unsecured or secured, the money can be used for anything. This can include going to Las Vegas for the weekend, but to get approved for unsecured loans despite bad credit, it’s best to provide evidence of more significant use. Therefore, it is best to show that the bad credit unsecured loan will be used to pay off credit card debt, catch up on overdue utility bills, or pay unexpected medical bills.

Basic criteria to meet

Of course, there are basic criteria to meet that some applicants seem to prefer to overlook. For example, proof of age is required because lenders are not allowed to make, not just bad credit unsecured loans, but any type of loan, to people under the age of 18.

Also, proof of citizenship is required as lenders are not willing to lend to people who do not have a legal right to reside in the US. This makes sense as there is a risk that the applicant could get unsecured loans approved through despite bad credit scores, but then return to your own country without repaying the loan in full.

Bad credit personal loans are also more likely to be approved if proof of employment shows the applicant has a regular job. Self-employed applicants may find it more difficult to successfully apply for bad credit unsecured loans, as the risk of their business failing is an additional concern.

So for business owners, some collateral may need to be provided, making it a secured loan. However, the fact that the criteria are met in other respects strengthens the application in any case.