Many assume that it seems easy to obtain $50,000 from financial institutions. However, your chances of getting a financial assistance from financial institutions are pretty low when your FICO score is less than 660 as most financial institutions including both traditional and non-bank lenders are not willing to grant such large loan amount to applicants with bad credit history.
In other words, most lenders are unlikely to bear the high risk of granting loans to applicants who had previously unable to perform their financial obligations properly and have low discretionary personal income – meaning that he or she has very little amount of net savings after his or her earnings are deducted with taxes and other financial commitments.
Therefore, here’s how you can realistically obtain a $50,000 secured loan when you have an unsatisfying credit score:
1. Make sure the total value of your personal asset is worth more than $50,000 – For instance, if you are a homeowner, it is necessary that you seek reputable real estate professionals to estimate the current market value of your property. If the value of your property does not exceed $50,000, consider asking other related professionals to estimate the current market value of your other assets – i.e. your boat, car and jewelries in which you can use them as collateral so that lenders would consider your loan application regardless your bad credit history.
2. Start locating non-bank lenders that accept applications from bad credit applicants – When you have decided to put up collateral for your secured loan application, next, it is the appropriate time to locate non-bank lenders via Better Business Bureau’s online business directory. Based on that directory, you can look out for reputable non-bank lenders that accept secured personal loan application online. It is preferable that you apply for such financial assistance from lenders that are operating near your area.
3. If your secured loan application is still rejected by lenders, start looking for the right co-signer – As the lender has the authority to reject your loan due to certain reasons, you need to start having a co-signer to support your loan application. Most lenders would prefer co-signer with these following criteria – for instance, high discretionary personal income, possesses good credit score (more than 680 FICO score), as well as being a homeowner of a property that is worth more than $50,000.
4. Shun those lenders who claim that they approve loans on the phone – When you have come across with lenders who have perpetually said that they offer guaranteed large loans on the phone, always remember that this is usually a common way of luring people who are in need of financial assistance, into their fraud scheme. Be alert with these scam artists and make sure that you make proper inquiry about their loan deals before you start applying.
As always, make sure that you consider the risk of getting a secured loan for applicants with bad credit as the lender has the authority to take away your asset if you are unable to pay off the loan as required.