The economic climate has not changed much in the last 4 years, so there are still millions of Americans struggling to find a solution to their financial problems. The majority of people today are considered bad credit borrowers, many having fallen victim to recent economic crises. For them, securing extra funds by seeking personal loans without collateral is something of a challenge.Collateral is a valuable commodity in the lending world, and in most cases loan approval is practically assured when collateral is offered as part of the application. But when an applicant has no assets worth enough to match the required sum, they are forced to seek unsecured loan approval.The fact is that an unsecured loan is always harder to get approval on because the lender carries all of the risk involved in the deal. The good news is that there are ways for an applicant to overcome the situation, and strengthen their chances of getting the much-needed funds.The Problem With Unsecured LoansSo, why should it be more difficult to get a personal loan without collateral than a normal loan? And what is the real difference in terms of loan terms? The task is more difficult because the lender is at risk of losing out should the borrower default. For this reason, approvals are not as forthcoming and applicants have to make the effort to convince lenders they can be trusted.Secured loans, or those with collateral, basically provide a form of compensation that lenders can take to cover their losses. It stands to reason that unsecured loan approval should be more difficult to get.The key difference to the loan terms is the lower interest rate that is charged. This can be as much as 2%, depending on the lender and the loan sum involved. However, when seeking a large unsecured loan, it is possible to have a longer repayment term and lower interest rate, making the deal more affordable.General Criteria For Unsecured LoansEvery loan has set qualifying criteria that all applicants must satisfy before a lender will begin to consider them for approval. When it comes to getting a personal loan without collateral, these criteria can be quite strict.The basic elements are the same, with applicants needing to be over 18 and be legally entitled to reside in the US. They must also have a reliable source of income and be in full-time employment. And with many lenders, applicants must also have a working bank account. This is especially so for applicants seeking unsecured loan approval from online lenders.The reason a bank account is so important is that it facilities fast and simple funds transfers. This works in the favor of the borrower when receiving the unsecured loan, and in the favor of the lender when it comes to making repayments as the installment is taken directly from the account every month. Choosing The Right Loan DealFinding the most suitable loan package can be tricky, and it usually takes some time searching before the right loan is finally found. The cost of a personal loan without collateral is greater because of the higher interest rate, but that does not mean competitive rates cannot be found.Online private lenders are generally the best source for loans for bad credit borrowers. They are experts in bad credit lending, and typically charge lower interest and offer flexible repayment schedules to ensure the most affordable unsecured loan deal possible.However, even when a good loan deal is found, it is important to check out the small print in the contract. It is there that details of any hidden charges will be revealed, proving whether unsecured loan approval would be worthwhile or not.