If you are like most Americans, then you know someone who is going through a hard time in this rough economy. It has been years since the times have been this desperate. As a result, many people are resorting to other types of financing. Many banks and other financial institutions offer unsecured personal loans. These loans can help a person get by if they come upon an unexpected expense.

Bad Credit Unsecured Personal Loans

Bad credit personal loans come in all sorts of amounts and have varying repayment terms. Often times, the repayment term is greatly dependant on the purpose of the loan. For example, a 12 to 24 month term for a vacation loan is not uncommon. Having an unsecured personal loan means that there is no collateral backing the loan. If you are looking for this type of loan then you will usually encounter a $500 borrowing floor, that is, you must take out at least $500 or it is not worth the lender’s trouble. For this type of loan, the repayment term is usually from 6 month to 10 years. You must remember that interest charges will also have to be factored into the total amount that you owe.

Personal Unsecured Loans

Lenders do their best to try to limit the amount of all bad credit personal loans to $25,000. The reasoning behind this limit is that they do not want to take on too much risk or else they could end up being out a lot of money.

High Risk Unsecured Personal Loans

There are two different types of unsecured bad credit personal loans that come with separate APRs, large and small unsecured personal loans.

A small unsecured bad credit personal loan would be a loan in the range of $500 to $10,000. If there is no collateral and no equity available for a loan, then lenders provide a great service to you when they offer to give you financing. These types of loans are not mean for everyday expenses, but rather urgent expenses such as home repairs, medical treatment, or a much-needed vacation.  Since these types of loans are pretty risky, they carry high interest rates in the range of 6 to 7 percent.

Unsecured Personal Loans for Bad Credit

A large unsecured bad credit personal loan would be in the range of $10,000 to $25,000. These loans can also be used for big expenses like home improvement, car repair, and medical treatment. In order to qualify for one of these loans you will need to have a job for at least two years and you must have not had a single late payment within the last 6 months. When the lender is assured that you are worthy of credit, they will extend this kind of big credit to you. This large loan is normally paid back within 5 to 10 years and it normally carries an interest rate of 7 to 9%.