While financial crisis is mostly uncalled for, you ought to be geared up to meet the consequences of undetermined losses and eventual cash strapped days. Whether it is unemployment owing to automation or an accident causing a wrecked car or a hefty medical bill in the family, credit can be raised to meet the mishaps in life.

However when you seek funds for multiple causes, you need a loan for all purpose. Essentially raising a personal loan could meet your several needs. These are signature loans which can be raised for short as well as long run. Indeed you can use personal loans as unemployed loans, bad credit loans or home repair loans and fulfill many more needs in your life. The choice is all yours.

As far as you repay the instalment on time, the lender is not bothered about the purpose of personal loan. However being a smart borrower you should follow certain thumb rules before availing unsecured personal loans.

• Shop around: Whether you have a bad credit score, or have a no history at all, be vigilant when searching for loans. You should compare rate of interest and APRs (Annual Percentage Rate) beforehand. In case you find it difficult to do it by yourself, you can contact a broker to do the same for you. A broker would do all the mathematics for you free of cost. Calculating total cost of the loan takes into account all charges including amount paid as interest, processing charges and any other charges.

• Deal with registered brokers: When you use a loan broking service, ensure that you deal with FCA registered brokers. It will help you save your interests. Dealing with right people ensure that none of the loan sharks offer you loan. If any of the associated financials conduct wrong practices you can complain about them and protect your rights.

• Read the contract carefully: It is very important to check small prints when you seal the deal. Sometimes too much honey is just phoney!

• Enquire about pre payment charges: Although your financial condition would not be sound enough to repay the loan but you should always enquire about the prepayment charges. Earlier you get off the loan, better it would be for your credit worth. So, search for a loan that comes without early payment charges.

• Seek Payment protection insurance (PPI): Although many would reject PPI out righteously; it is useful for bad credit days. However this protection comes with too many clauses. Make sure you understand the terms before signing the deal.

• Know the risks involved: When you seek a secured homeowner loans, it would come cheaper than unsecured loan. But in case of nonpayment you also run the risk of losing collateral. Under bad credit situation when you have the least resources to keep up the promises, you need to use your home equity only when you are sure of reapplying on time.

• Your credit score matters: Well, better is the score, the more loans would be offered to you. However leaving aside the temptation, you should borrow for the amount you actually need.

Do your homework by pulling out your Equifax or Experian credit report and know what to expect from the lender. Going a step further, use broking service and save all the leg work to find the cheapest deal in the town.