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Large Unsecured Bad Credit Loans: Can You Qualify for $50,000?

If you have a need for a large personal loan, say $50,000, then there are a lot of odds stacked against you in the current economic climate. Large loans are hard to find since many banks and traditional lenders are not willing to take such a huge risk without reassurance in the form of collateral, so qualifying for a $50,000 unsecured loan is tough.

The other side of this equation is the kind of relief that $50,000 can offer to those in a bad financial position. Yet, the amount is so high that many people cannot find private lenders, such as friends and family, to help them out. That is why it is important to step away from the situation and try to weigh your options logically.

Traditional Lenders Are Tough

As I mentioned earlier, the likelihood of finding a traditional lender to help you out with a large unsecured loan is very slim. These lenders are strapped themselves as a result of the financial meltdown of the last few years and reluctant to lend to even the best of borrowers without collateral.

These institutions will put you through a very thorough background check which will include looking into your credit, employment history, and residency. Only those with the very best of backgrounds will even be considered. The lack of collateral in an unsecured loan or personal loan makes many banks nervous since there is little to fall back on should you default in your payments. They need to be certain of your ability and intention to repay them.

Job Status

Obviously, unemployed people have a special need for money. Especially if you have been out of work for awhile, an infusion of cash could mean the difference between paying your bills and filing for bankruptcy.

However, those without a job will not be able to qualify for such large loans. The lender has very little guarantee that you can pay him back. In addition, even those with a steady job and a decent wage will be denied if they do not make enough money for the lender’s taste. Generally, you need an annual income above $100K to even be considered for a large unsecured loan.

Facing Reality

The only hope left if you have bad credit, no job or a low salary, and a need for a $50,000 loan is to find a cosigner. However, the person cosigning your loan needs to meet the same criteria outlined above in terms of credit score and annual income to be of any help.

In addition, any cosigner you may find needs to be willing and able to take over the payment of your loan should you default. So if you cannot find someone like this, consider looking for a smaller unsecured loan of around $2,000 to $5,000.

Final Considerations

Whether you opt to go for that large loan or a smaller one to tide you over, it is important to make sure you do your research into anyone you may borrow from. There are a lot of internet lenders who will scam you for personal information or charge you obscene fees described in the fine print of your loan paperwork.

That is why it is important to approach the loan process with caution. Make sure you find a reliable lender and that you take out a reasonable amount of money that you can repay on time. This way, you can begin to rebuild your credit and get the $50,000 you need in the future.

How to Avoid Getting Bad Credit – Measure to Take to Stabilize Your Credit Rating

If you have been denied borrowing repeatedly then you may still be able to gain finance from a company that specialises in bad credit loans. Furthermore, you will not necessarily have to provide security in order to obtain this type of finance, which is specifically referred to as unsecured loans for bad credit.

Most lending institutions are reluctant to lend cash to individuals with an unfavorable repayment history. Therefore, it is better for people in this position to deal with an accredited agency that is used to obtaining loans for bad credit on behalf of its clients. It is particularly advantageous if the agency has an established network of lending institutions as this enables them to shop around for the best interest rates.

Surprisingly, bad credit unsecured loans can also help to repair a poor credit history. This is because it will work in your favor if you can successfully obtain borrowing. Additionally, if you ensure that any repayments on unsecured bad credit loans are made on time, you will begin to demonstrate your capacity to meet your financial obligations. You may find yourself with a poor credit history for a number of reasons including bankruptcy, Individual Voluntary Arrangements, County Court Judgments and defaults on previous loans. Additionally, people who have never borrowed money may find it difficult to obtain finance as they haven’t been able to build up a positive history.

All of the above factors can affect your credit report; these reports are maintained by agencies that specialize in recording financial information about individuals. Therefore, when you apply for any type of borrowing the lending institution may refer to your report before deciding whether to grant finance. If you make repeated applications and are turned down then this is also recorded on your report, and could reflect badly on you. Many lenders use a credit score system for people that apply for loans. Your score will depend on many factors and will vary from company to company. However, a major factor will be your credit report. Therefore, if you have a poor report then this could pose a predicament for you in obtaining finance.By visiting a specialist agency you may be able to secure borrowing that suits your needs. Additionally, once you can prove that you are able to meet the repayments on time, your credibility as a borrower will be enhanced. This should eventually boost your chances of obtaining finance in the future. The amount that you can borrow will vary as it depends on factors such as your income and how many financial commitments you already have.Your loan adviser will inform you about the options available once the staff have obtained relevant information regarding your financial status. The repayment period can also depend on how much is borrowed and the amount that you can afford to repay each month.

It is easy to apply for a loan online, which makes the process quick and straight forward. This also means that you can apply for finance regardless of your location in the UK. Interest fees will be higher for people with a poor repayment record but a specialist agency should be able to obtain the best rate possible. This is because many of them have links with lenders that specialize in this type of borrowing.

Online Pawn Shops Offer Bad Credit Loans

The venerable pawn shop – full of weapons, records, bicycles, guitars and jewelry- is now in cyberspace. Online pawn shop brokers, like their brick-and-mortar brethren, cater to people with poor credit who need fast cash, especially as the holidays approach and people need money for gifts and travel.

People give up personal possessions in exchange for a short-term loan. To regain their possessions, people need to pay back the loan in the agreed timeframe. If that doesn’t happen, then the pawn shop keeps the item and resells it – perhaps as a cheap, used Christmas gift. Budget-conscious shoppers, amid a shaky economy, may bypass malls to purchase their presents through an online pawn shop.

Online Pawn Shops And Identity Theft Concerns

Pawn shops, like other smart businesses, are increasing commerce through the Internet. Many storefront pawn shops also have an online offshoot to bolster their business. The demand for the pawn shop loans they supply is enormous. More and more Americans are struggling with humongous debt. Their credit problems bar them from attaining loans from traditional financial institutions.

If you do business with any online pawn shops, you may release some personal financial information, leaving you susceptible to identity theft. Consumer fraud and identity theft cost Americans more than $1.1 billion in 2006, according to the Federal Trade Commission. During the same period, there were more than 670,000 complaints concerning consumer fraud and identity theft, the FTC said.

It is prudent to safeguard your personal information in all online financial transactions. Many states have different regulations on pawn shops. Some online pawn shops may be able to sidestep those regulations and engage in harmful business practices.

Alternatives To Online Pawn Shops

Giving your hard-earned money to pawn shops is not a form of debt relief. Many people put up jewelry or electronics for quick cash, can’t repay the loan and never see their valuables again. Taking out one bad credit loan after another will only drain your wallet and do nothing to solve your debt problem.

Debt settlement or debt consolidation can get you out of your cycle of credit card debt. Your debts can be combined into one easy payment through debt consolidation. Debt settlement can reduce your credit card debt load. Through debt settlement, a trained financial expert can work with your creditors to reduce your credit card debt amount so you can pay it off quicker.