Is it Possible to Qualify for Unsecured Personal Loans in the US?

Perhaps the question that occurs at least once in everybody’s mind is this. Of the 70% borrowers of unsecured personal loans that use them regularly for paying monthly expenses, often they ask whether they can go for personal loans and get the same benefits. This is a valid question and a reasonable one too for regular borrowers. If you have a tendency of borrowing and repaying, you have built a modest credit history that can help. But, for those with a bad credit history or without even one, the answer is not that straightforward.

Of course, as with all things, there are a certain case where this is possible but for the average household that makes an average of $30,000 annually, this is a big deal. It has been found that 80% of these households apply for a loan once a year, and for them, an unsecured personal loan online is a delight.

The facts behind unsecured personal loans for bad credit

For the 25% of Americans that are labeled as ‘Unbanked’ unsecured bad credit loans are the only means to survive. These families and daily wage workers have no collateral, guarantors, or protected by specific assets. When a lending agency lends money supported by the creditworthiness of the borrowers, these are called ‘Unsecured Loans’.

And, surprisingly many payday loan companies just look at your salaried account to give you a small personal loan.

  • These loans start t around $1000 at the minimum level.
  • The APR varies from 35% to up to 155% for those with bad credit.
  • Most of these applications are from storefront shops, about 73% (PEW Charitable Trusts survey).
  • Most borrowers in the USA make less than $30,000 annually or are ‘Unbanked’.

When combined with New Mexico, Kentucky, Louisiana, Alabama, Mississippi the unsecured bad credit loans are most processed in these states alone. The laws regulating these practices can vary from little to non-existent in some places. And, this can be a big deal for borrowers.

Especially, unsecured bad credit loans are small-fixed payments. Their collection process is also not very specific, so for defaulters, this can be a tough situation if they don’t make it by the next paycheck.

Several Lending Agencies have Flexible Rules

If you start with bad credit too, there are some lending agencies in the US, as of 2020, who can consider giving a flexible and relatively better deal on rates and repayment schedules. Some agencies will allow credit scores below 550 if you have a co-worker with a better score. A score under 550 is considered ‘Poor’ and you can still find some companies online that offer a loan. In the US, as of 2020, several tools or websites will help you look for one without having to rely on Google Search alone. It is not always possible to scroll through the search results and self-verify the various companies and make your lists. A few places do that for you in advance, and all one needs is a small query to make.

Here you can enter your query like loan amount, credit score, state you live, annual income and so on and check whether you qualify for unsecured bad credit loans. This search will show all lending agencies that are verified, for the matter.


In zest, unsecured personal loans are helpful for millions of Americans and that is why they are still around in 2020. With online applications and payment, the task is faster and secure. You can apply during an emergency and receive credit under hours. At the same time having a paycheck and trying to maintain an average credit score helps a lot and goes a long way.