Bad credit borrowers already know that getting approval on a loan is a lot trickier for them that for good credit borrowers. However, it is worth noting that approval is not impossible. In fact, despite the greater risk that exists, some lenders will grant applications for unsecured loans with bad credit.
True, it seems a little too risky for a lender to do so when there is no security provided. But the truth is that granting loan approval with no collateral is fine as long as the applicant has met the necessary criteria. The lender simply restricts the size of the loan, and charges higher interest in compensation for the risk.
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