Common knowledge would seem to indicate that folks with poor credit are simply not eligible for a $10,000 personal loan, no matter the lender or the circumstances. During these recessionary times, many people have lost their principle means of income – their jobs – and have to turn to alternatives to meet their financial commitments.
Also due to these strange financial times, traditional lending institutions, such as banks and credit unions, are tightening the requirements for large personal loans. Only applicants with good credit scores and possessing real collateral, or property, are being approved for these high-amount loans. Often, even meeting these requirements will not cause easy approval.
As a result, many people have turned to non-traditional lenders who are offering these high-value loans to those with poor credit ratings. Many lenders are available in this highly competitive market and they offer the poor credit borrower with distinctive loan packages geared to this market.
Keep These Five Points in Mind
Applicants who have poor credit histories, should keep five important considerations at the front of their thinking as they approach lenders willing to offer $10,000 personal loans.
One: Unsecured loans have very high interest rates. The lenders for these types of loans are accepting quite a lot of risk. Their customers have poor credit histories. Their customers have no collateral to secure the amount. Because of this risk, high interest rates help offset the chance of non-payment.
Two: Watch your step when applying for these loans. You should shop around, but don't make too many applications. Every time you make an application for any type of loan, your credit score gets a negative hit. Credit score managers look on those who make multiple applications in the same light that pharmacies see patients asking many doctors for narcotic medicines as drug-seekers. "Greed Is Not Good" is the catch phrase.
Three: Non-traditional lenders are not always entirely scrupulous. Those operating online should be thoroughly researched, because they can lock up shop on one website and turn around and open another on a different website, often within hours. Check electronic financial bulletin boards and the Better Business Bureau directories for customer and industry feedback.
Four: Every non-traditional lender will offer different interest rates and different repayment terms. This is a highly competitive business and not all packages will have the same cost. Shop around and take your time. You could save yourself hundreds of dollars in interest and fees. Your bottom line involves the interest involved, the lower the better of course, and affordable monthly repayment plans.
Five: Make sure you have the wherewithal to repay the loan in the manner specified in the contract you have signed. Most lenders of this type of loan like to see a 90-day employment history with the same company. Indeed, some lenders will make loans to those temporarily unemployed, but interest and fees will be considerable higher for that sort of applicant.
It is Up to You to Make It Right
Consider all the risks involved in taking out such a high-value loan. Thoroughly research your lender. Shop around for the best rates and fees. Make sure you can repay such a loan. If you default, you'll have the law and a worse credit history to deal with. Keeping all this in mind should help you secure a $10,000 personal loan in spite of your poor credit rating. And bring the whole deal to a responsible and good conclusion – maybe even a better credit score.