The road to greater financial security may not be the smoothest, but nor is it so difficult to travel. Mounting bills and debts can place extreme pressure on any one of us, especially when we have a limited income or. In such circumstance, securing a $10,000 personal loan can seem a long way away.
But the truth is that such a loan is not impossible to get approval on if the right choices are made before applying for personal loans with bad credit. And there is a variety of lenders to choose from – other than the traditional lending institutions like banks – that can suit the specific circumstances of an applicant.
Knowing which one to approach when seeking approval on large personal loans with bad credit is a key factor to putting together a successful application. So, take a look at the short list of the options available and consider which one is best suited to your particular needs.
Many people overlook this option, but independent licensed lenders can be the perfect choice when seeking a $10,000 loan. While traditional banks will be reluctant to welcome applicants with very low credit ratings, these lenders are employed to find the best possible loan options available.
In essence, they are small loan brokers and can often be found online. But there is a need to ensure they are reliable, so be sure to check them out on the Better Business Bureau website before signing up to any personal loan with poor credit package.
Home Equity Loans
Even if you are still paying your mortgage, your home can have an equity value against which it is possible to secure approval on large personal loans with poor credit. Basically, as the mortgage is repaid, and the loan amount owed reduces, a growing share of the home value becomes yours.
Given that property values tend to increase rather than decrease, this means that even after 5 years, a significant amount of equity can exist. It may require a home loan refinancing deal, but a percentage of the equity can also be offered as collateral to a $10,000 personal loan possible.
This is an option that is growing in popularity, mainly because it is a good deal for both parties. Basically, with the documentation and approval procedures involved in getting a personal loan with bad credit, going to your own employer is much less complicated. The loan is essentially an advance on salary coming, and your employer will take back a percentage of the loan out of your pay check each month.
Seeking approval on large personal loans with poor credit can end in disappointment, but going to your employer can be the least complex and most affordable choice.
Another popular option when emergency funds are required. But it is ideally designed for smaller loan amounts, with repayment coming out of an upcoming pay check, and interest rates being very high. This means that a $10,000 personal loan is possible only if the monthly salary can cover the repayment.
These personal loans are usually repaid over 14 – 30 days, but a longer repayment scheme – over 5 or 6 months – can be negotiated.
Finally, family is probably the surest and least expensive way to get approval on large personal loans with poor credit. Family is unlikely to turn the idea down, unless they are unable to raise the required funds for a $10,000 personal loan.
Still, while the agreement might be very informal, it is a good idea to write down terms and a repayment schedule, signed by the relevant parties, just to keep everything straightforward.