$50,000 Unsecured Personal Loans: Large But Within Reach
Getting mounting debts under control is hugely important. Thankfully, it is possible to get even $50,000 unsecured personal loans for that purpose. Just know where to go and what to look out for.
Mounting debts are a huge worry for us all, and unless the problem is taken control of as quickly as possible, the debt can become insurmountable. But, believe it or not, even $50,000 unsecured personal loans can be granted, a significant sum when trying to clear crippling debts.
Their availability may seem strange, especially when the accepted rule is that large loan approval with no collateral is a rare thing these days. However, that is a standard set by traditional lenders mostly through strict lending policies, high interest rates and restrictive conditions. Alternative lenders have a different set of criteria, which are ultimately easier to meet.
Of course, any personal loan granted with the absence of any security is not going to come with the very best loan terms. But with the right lenders, competitive loan packages are available. The trick is to know where to go and what details to look out for.
The Problem With Traditional Lenders
Nine times out of ten, traditional lenders do not offer the best loan deals. This is because banks and credit unions tend to have larger overheads and more employees, so have more to cover and more to lose. Their higher interest rates make $50,000 unsecured personal loans very expensive in the process.
But with detailed credit checks carried out, the chances of an applicant with low credit scores getting loan approval with no collateral are pretty slim. It may be possible to get a smaller loan, perhaps $5,000 or $10,000, but larger loans are almost certain to be turned down.
It may be deemed affordable if the term of the personal loan is very long, For example, repaying $50,000 over 5 years could cost $850 per month, but over 10 years could cost half that. Of course, this also means that a much larger amount of interest is paid over the term, pushing the overall expense higher.
How Alternative Security Can Improve Options
A key consideration with a $50,000 unsecured personal loan is that there is no security provided as part of the loan deal. This means the borrower only has his or her income to offer as assurance that repayments will be made. And for traditional lenders, this may not be enough.
This is where alternative options can have an advantage. For example, with no item worth $50,000 to provide as collateral, a cosigner is an ideal alternative. As a guarantor for the loan, the repayments are assured of being paid, thus removing much of the perceived risk. In this case, approval with no collateral becomes very likely.
Of course, a cosigner needs to have an excellent credit record and a large enough income to cover the repayments. Otherwise, their addition is not going to be accepted. If that is the case, then another alternative is to seek small personal loans ($2,000-$5,000) to repay individual debts and, in that way, lower debts bit-by-bit.
Take Care With Online Lenders
With traditional lenders not offering fantastic deals on $50,000 unsecured personal loans, online lenders are the only real alternative. These lenders tend to be experts in lending to bad credit borrowers, since it is the niche area created by the protective policies that banks have. However, even with lower interest rates, flexible repayment schedules, and a chance to get approval with no collateral, some care is still required.
Unfortunately, online lenders are not alway as they seem, so it is essential that their reputation is checked out before agreeing to any loan deal. This can be done on the Better Business Bureau website. Only settle for a lender that is graded A or above, then it is safe to apply for a large personal loan with confidence.
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