There are companies that advertise that they offer an unsecured loan; Bad credit, they say, is not a problem. If they advertise that they don’t do credit checks, then they are probably offering a payday loan. A payday loan is a short-term loan with a high fee known as a debt trap. In an emergency situation, it may be the only unsecured loan for victims with poor credit histories.

There are companies that advertise unsecured credit cards for poor credit risks. One we reviewed offered a $250 credit line, but the initial charges were $178, which was charged to the card and appeared on the first statement, leaving an available credit line of $72.

If you have been denied a loan or credit card because of information obtained from one of the three major credit bureaus (Equifax, Experion, or TransUnion), you are entitled to a free copy of that report. The bank or credit card company will provide you with the name of the credit bureau, and then you must contact that agency yourself. Before considering unsecured credit cards for poor credit risks or an unsecured loan, poor credit should be improved if possible.

You are also entitled to a free copy of your credit report if you are unemployed and plan to look for work within the next 60 days, if you receive welfare, or if there is inaccurate information on the report due to fraud. You are entitled to a free copy once every 12 months for any reason or no reason. Experts advise that consumers review the information on their credit reports before beginning to apply for loans or credit cards. Even if you know you have poor credit, you may be able to improve it. In response to a recently enacted law, a new website was created to allow consumers easier access to their credit reports. The website address is http://www.annualcreditreport.com. There are companies that use similar URLs to attract business to their websites. These companies are selling information on a number of things including getting an unsecured loan, repairing bad credit, unsecured credit cards for bad credit, and credit monitoring services. Please make sure you are in the correct site before providing any personal information.

There are companies that guarantee or promise an unsecured loan; Bad credit or no credit is not a problem, they say. Then they will ask you for a fee. The Federal Trade Commission calls them “Advance Fee Loan Scams.” It is illegal for any loan company (whether advertising an unsecured loan, poor credit not being an issue or not) to solicit money from a consumer to process or guarantee receipt of a loan. Any fees attached to the loan will be deducted from the loan. Legitimate lenders never guarantee a loan until your credit status, employment information, and references are verified.

Unsecured credit cards for poor credit aren’t much better than advance fee loan scams, but if you have enough money to pay the fees, they can increase your credit limit over time. If you need emergency funds, you may feel like you don’t have time. This is the reason why payday advance companies are so popular. But if possible, you should take steps to improve your credit score and avoid scams. Consider all your options before applying for bad credit unsecured credit cards or bad credit unsecured loan offers.

There are companies and services designed to help consumers who are in debt. The National Foundation for Credit Counseling can provide you with a list of nonprofit organizations in your area that provide free or low-cost counseling services. There are law firms that specialize in credit repair for various fees. There are companies that will “hunt” unsecured credit cards for poor credit risks or poor credit offers of unsecured loans. For a fee, they will try to find a bank or loan company willing to lend to people with your credit score. If you try one of these companies, make sure they are legitimate and will refund your fees if they can’t find a loan for you.

If you are in an emergency situation and need an unsecured loan, repairing bad credit may not be an option right now. Repairing a poor credit history takes time and patience. However, there are other options to consider before taking out a cash advance or other high-cost loan. Unsecured credit cards for poor credit will take time to process and will charge you additional fees and even higher interest rates if you take out a cash advance.

Retired and active duty military personnel and their dependents can get interest-free loans and sometimes grants to help them in emergency situations, like paying rent or car repairs. Homeowners can borrow against the equity in their home, not a bad credit unsecured loan offer, as their home is the collateral for the loan. If you’re having trouble paying your bills, talk to your creditors; Consider a debt management program or consumer credit counseling services.

There are other bad credit unsecured loan offers and scams that you should avoid. Read the brochures and brochures published by the Federal Trade Commission on its consumer credit website. A secured credit card may be a better option for rebuilding or building credit than unsecured credit cards for poor credit risks. Read the FTC’s advice on these, too.