The National Credit Union Association (NCUA) revealed that the demand for unsecured loans last year reached $25.58 billion, up from $25.47 billion the previous year. As consumers continue to recover from recession fatigue, smaller credit card limits and the inability to obtain a home equity from an underwater house, personal loan options may be inclined to have more consumer appeal.
Click N’ Loan can connect qualified customers to loans up to $5,000, but if you delve deeper into personal loans on a grander scale, you’d be surprised at what consumers try to finance. These large loan requests underscore the importance of financing based on need rather than impulse.
No matter what loan amount you apply for and obtain, there’s no substitute for common sense, budgeting and responsible repayment.
Jim Angleton, President of AEGIS, revealed some of the craziest loan requests his financial service company has received for loans in the $50,000 to $750,000 range.
A $100,000 loan for a socialite’s plastic surgery, with a 10 year amortization of the loan for repayment.
“This request came under the heading, ‘way too much info’,” Angleton said. “She sent us her before and proposed rendering of after.”
A $50,000 loan request for a gold mouth grill.
“He too requested a 10 year amortization and then wrote if he cannot become a rapper he might need longer terms,” Angleton said. “We denied this loan…we don’t know how to enforce collection of our assets. How does one repossess his ‘grill’?”
A waterfront home for a borrower’s mistress and husband to get up to $300,000 cash out.
“She was going to tell her husband she won it in a raffle,” Angleton said. “Husband is a law enforcement officer.”
Loan broker applied for $750,000 to finance a massage parlor.
“The seller was the U.S. Government as it was seized by federal agents for prostitution and inappropriate conduct,” said Angleton. “We denied that loan too.”
These outlandish requests are a valuable lesson for why you might want to tame your own borrowing urges. Don’t look at the money as if it’s burning a hole in your pocket, but as your own money that you’re using on interest—and borrowed time.
Also keep in mind that lenders will take a close look at what you’re trying to finance. Without collateral to repossess in case of default, they want to see that the loan has a responsible purpose, backed by the income to pay it back.
Now that you know about the silly things six figures shouldn’t finance, learn more about how you can properly use a small unsecured personal loan at Click N’ Loan.
Tags: personal loans, unsecured personal loans