#unsecured loans with bad credit
Secured and Unsecured Loans
The Best Way to Get a $25,000 Unsecured Loan
When you are looking for a $25,000 personal loan but have a low credit score, traditional lenders, who usually cater to people with more than 700 credit score, might refuse to provide you with installment loans. But there are consumer credit unions as well as newer financial institutions that can provide loans to people with less than perfect credit score, to be repaid in one to five years time. The bad news is that all these financial institutions willing to lend money to individuals with less than perfect credit will not offer such large amounts.
It will be easier and more affordable to get a large personal loan if you have a security or a confirmed source of income or earnings. Unless you have a recent consumer bankruptcy or something that severe, you can always find a lender for your personal loan requirement. Some companies will offer you amounts up to $1500, while other companies offer free, no-obligation loan quotes from their network lenders, including private student loans, personal loans and home loans. Amounts offered can reach up to $35000, but good credit is required.Another viable option to get an unsecured $25000 personal loan is through peer to peer lending.
P2P loan companies gather on one side the investors willing to make available small amounts of money, and on the other side the borrowers. These companies offer loans to a wide range of customers, but they generally prefer those with good or excellent credit score (640+). The borrowers choose a loan amount, purpose and post a loan listing. Investors review loan listings and invest in listings that meet their criteria. Prosper.com offers various types of unsecured loans ( personal loans, home improvement, debt consolidation, wedding loans, motorcycle loans) up to $25000 on 1, 3 or 5 years. Rates are starting from as low as 6.59% but they get higher as the credit score gets lower. Lending Club can provide up to $35000 personal loans with similar rates and types of loans. You can visit their web sites to get more information and see if you qualify for a loan.
If your credit score is too low to get such a large amount, you can work to improve your credit score towards 640-650 as that will make more lenders willing to provide a 25000 dollar loan at better rates. You can try to do this on your own or you can use a credit improvement service.
If that is not possible, try to find a co-signer with a good credit history. Having someone to share your loan will make it safer for the lender. The lender will be willing to provide even more than $25,000 unsecured loan if the co-signer has a large verifiable income source besides having a good credit history. In case you are not able to find a co-signer, go to the credit union you already are a customer of. Better still go to the one you have been with the longest. Use the services of a loan specialist to put together all documents to prove your ability to repay the loan on time and if your credit rating is not too bad, you may be eligible for even more than a 25 000 dollar loan.
If you would like to avoid a credit review while being considered for an application, you can look for an $25,000 unsecured loan online. You will immediately get a response from these lenders, who may be small-scale loan companies with no proven business history or large reputable bad credit lenders such as American General Financial Services, Creditloan.com etc.
Even after trying all these, if you are still unable to get a $25,000 unsecured loan, break it into smaller sums and try to obtain these from different lenders. You may be able to pool together several such loans, with say a cap of $5000 to achieve the required amount. Be warned though! Pay more than the minimal required sum per month else it will take very long for you to repay all these loans. Any outstanding loans may then hamper your ability to finance your future requirements.
You may consider any of the above options or you may find something else more suited to your requirements, but make sure to stay away from any kind of pay day loans or loans with more than thirty percent interest rate. Not only will these be too expensive, but it will be very difficult for you to maintain the payment obligations further damaging your credit standing.