Getting a large loan of $10,000 may look impossible, but it is not. It could be a challenge if you have bad credit. However, with a little hard work and persistence, you will eventually find a lender that will give you a $10,000 bad credit personal loan with decent interest rates and a comfortable repayment plan.
Consider Debt Consolidation
How did your credit fall in the bad category in the first place. Not making payments on time for everything from a car loan to a credit card, to a cash loan, to utilities can lead to bad credit. When you get your bad credit personal loan, you may want to consider using it to pay off all your other debts so you have only one payment to one lender, at the same interest rate, due on one day of the month. Clearing up past loans, such as credit cards, car loans, etc., and making payments on time to a consolidation loan can clean up your credit history quickly.
Secured and Unsecured Loans
Two types of bad credit personal loan can be found in the market -- secured and unsecured. Secured loans have some sort of valuable property to cover the loan, usually real estate, stocks and bonds, or even a late model car. If you default on the loan, the lender has a recourse by seizing the property and selling it to cover the cost of the loan. Unsecured loans require only your signature and your good intentions, but they may be harder to find.
Finding Non-Traditional Lenders Online
You will some problems finding credit from traditional brick and mortar lenders such as banks and credit unions. Lately they have tightened up their credit standards and even people with good credit scores, and collateral, are finding it difficult to get credit from them. Simply punch you browser with - Personal Loan - and you will get scores of lenders willing to help you out. In fact, so many private lenders and private companies have stepped into the bad credit personal loan market, you may be able to shop around and pick and choose the lender that offers you the best interest rates and the most comfortable repayment terms.
Knowledge Is Your Best Friend
Before you make any decisions, you will want to check each of your lenders. Check the online Better Business Bureau for your choice of lenders. They should be graded and you may find feedback from other customers. Do not use a lender graded below B. Also, there are many articles and pieces of information available online. Know as much as you can about personal loans and the lending industry.
As with any online transaction, make sure your lender is reputable and that the website where you give your personal and private information is secure. Filling out the application is very easy and any documentation required can be provided via fax or scans. Also understand that most online lenders do not care too much about your credit report. They are most interested in your ability to repay the loan. They will ask about your job and your salary and how much money you have left over after you pay your usual monthly obligations. Your loan may be approved in as little as a few moments, and you can your cash in your bank account within twenty-four hours or less. Think about using it for debt consolidation.