During these recessionary times, it is no secret that requirements for personal loans have been tightened by traditional lenders. Many consumers are dealing with unemployment or under-employment. These bad times have thrust poor credit ratings on many consumers. These factors do not negate the need of some consumers for large loans to see them through hard times.
You may have noticed that online lenders offer large loans, up to $50,000, even for those with poor credit. If you are in need in such a loan, take a look at how you might go about landing a substantial loan from a non-traditional lender.
Perhaps you have approached a number of traditional lenders, such as banks and credit unions, for a substantial loan and your applications have been rejected. To fill the need for such loans, non-traditional lenders have entered the market and are available to meet the needs of many borrowers. These lenders do not rely on credit scores and do not ask borrowers to put up any collateral, such as a vehicle or real estate.
Non-Traditional Lenders Require Non-Traditional Scrutiny
Many non-traditional lenders operate online. Beware, websites can disappear under one guise and show up elsewhere in a matter of a few hours. Before you decide to do business with any high-value loan lender who operates online, you should thoroughly check their credentials. The wise borrower should query the Better Business Bureau to ensure that the lender is accredited there and that it has decent ratings and positive consumer feedback.
Find the Right Interest Rates, Fees, and Repayment Terms
Before you approach a high-value loan online lender, make a budget of what you want the loan to cover, along with estimated costs. Doing so will give you a better idea of how much cash you need to ask for. You will want to keep in mind the amount of monthly repayments you can easily cover.
Lenders will be more apt to seriously consider your loan if you can tell them why you need the money and how you plan to use it. If the use of the cash loaned is a way to a return on investment, they will take your request even more seriously.
If you still are unable to impress upon a lender your need and your ability to repay, you may want to seek a friend or family member to act as a cosigner. They should have a better credit score than yourself and they should be employed. They should also be aware that by cosigning the loan that they are liable for the amount of the loan should you default for any reason.
Do Not Try to Penny Ante the System
Some borrowers who cannot land a high-value loan may opt for taking out a number of small loans. Most non-traditional lenders have access to data banks that red-flag borrowers who are attempting to do just that. And, while you may be approved for a number of small loans, your credit history will take a hit; just as doctors report to pharmacies patients who are drug seeking.
After Approval for Your High-Value Loan
Once you have landed a high-value loan, stick to the budget you formed before you approached the lender, and use the money wisely. Under no circumstance should you consider defaulting on the loan, especially if you have a friend or family member as a cosigner. The loan has become your responsibility and it is incumbent upon you to meet your repayment obligation. If you do not, your credit rating will become even more deplorable and you may make an enemy of your co-signer.
A high-value personal loan from an online lender could be the ticket out of your financial problems. If you use it prudently and repay as agreed.