The road to greater financial security may not be the easiest, but it’s not that hard to navigate either. Piling up bills and debt can put extreme pressure on any of us, especially when we have limited income or. In such a circumstance, getting a personal loan of $10,000 may seem like a long way off.
But the truth is that it is not impossible to get approved for such a loan if you make the right decisions before applying for bad credit personal loans. And there are a variety of lenders to choose from, in addition to traditional lenders like banks, that can be tailored to an applicant’s specific circumstances.
Knowing which one to turn to when seeking approval for large bad credit personal loans is a key factor in putting together a successful application. So, take a look at the short list of available options and consider which one best suits your particular needs.
Independent Lenders
Many people overlook this option, but licensed independent lenders can be the perfect choice when looking for a $10,000 loan. While traditional banks will be reluctant to accept applicants with very low credit scores, these lenders are used to find the best available loan options.
They are essentially small loan brokers and can often be found online. But you need to make sure they are reliable, so be sure to check them out on the Better Business Bureau website before signing up for any personal loan with a bad credit package.
Home Equity Loans
Even if you’re still paying your mortgage, your home may have equity against which it’s possible to get approved for large bad credit personal loans. Basically, as the mortgage is paid off and the loan amount owed is reduced, more and more of the home’s value becomes yours.
Since property values tend to go up rather than down, this means that even after 5 years, a significant amount of equity may still exist. May require a home loan refinancing agreement, but a percentage of the principal may also be offered as collateral for a potential $10,000 personal loan.
Employer Loans
This is an option that is gaining popularity, mainly because it is a good deal for both parties. Basically, with the documentation and approval procedures required to get a bad credit personal loan, going to your own employer is a lot less complicated. The loan is essentially an advance on your upcoming salary, and your employer will recover a percentage of the loan from your paycheck each month.
Seeking approval for large bad credit personal loans can end in disappointment, but going to your employer may be the least complex and most affordable option.
payday loans
Another popular option when emergency funds are required. But it’s ideally designed for smaller loan amounts, with repayment coming from your next paycheck, and very high interest rates. This means that a personal loan of $10,000 is only possible if the monthly salary can cover the payment.
These personal loans are generally repaid within 14 to 30 days, but a longer repayment plan of 5 to 6 months can be negotiated.
private loans
Finally, family is probably the safest and least expensive way to get approved for large bad credit personal loans. The family is unlikely to reject the idea, unless they can’t raise the funds needed for a $10,000 personal loan.
Still, while the agreement can be very informal, it’s a good idea to write out the terms and a payment schedule, signed off by the relevant parties, just to keep things simple.