If you are a homeowner with bad credit, here are five tips, from A to E, that could help you land a $50,000 bad credit personal loan from non-bank lenders. It may seem like a formidable amount, but there are lenders to help you with your financial solution.
TIP A: Using Non-Traditional Lenders
Steer away from the traditional brick and mortar financial institutions such as banks and credit unions. They have tightened their credit standards and are not like to lend to bad credit borrowers even if the borrower is a homeowner. Your best bet is to target private lenders who have stepped in to fill the void. These lenders usually work online, or on the internet. Many folks have bad credit scores; banks will not lend to them; private lenders will. There are plenty of them, but more on that later.
TIP B: Checking Lenders
Before you go applying for loans, you need to check each prospective lender. Find at least five. Your first step should be to check each with the online records of the Better Business Bureau. You will find BBB ratings and even customer feedback regarding the business and how they were treated. Choose lenders with a score of B or above. You could also check online borrower forums to find loans and businesses and how users dealt with them.
TIP C: Finding the Right Loan
If you do not want to put your home up as collateral, you will be searching for an unsecured bad credit loan. These may be a little harder to secure, especially in amounts above $10,000. If putting your home up is no problem, you will be searching for a secured bad credit personal loan. With your house as collateral, your loan amount could easily reach $10,000 or more. The downside? If you default on your loan you could lose your home.
TIP D: Getting a Co-Signer
To really solidify your chances of landing a substantial bad credit personal loan, have a co-signer. If your co-signer has a better credit score than yourself and has a good income, your chances of landing the loan are increased substantially. Lenders will also be looking at your debt to income ratio, as well as your cosigners. They want to see that you have enough income left over every month to make loan payments.
TIP E: Shopping Smartly
You will be surprised how many lenders you will find on the internet. Just point your browser to: Personal Loan. Scores of lenders will pop up. You will be able to shop among them, choosing those with the lowest rates and the most comfortable repayment terms. You would make a smart move by pulling up one of the free online loan calculators to figure total costs including interest rates, fees, etc.
Once You Get Your Bad Credit Personal Homeowner Loan
Use the loan wisely. Whatever you do, pay back the loan as stipulated in the contract. Do not stiff your cosigner if you have one – bad blood. Paying back a substantial loan will reflect well on your credit record and pave the way for substantial loans in the future.