$10,000 Bad Credit Loan: It Can Be Done!

During the financial crisis that the nation has been experiencing for several years, more and more people have found themselves unable to pay their bills. Mortgage payments, because payments and, for business owners, payroll have become increasingly difficult to pay. As a result, many people have turned to short-term loans, revolving lines of credit, and consolidation loans to help them financially. However, for those with bad credit, getting a loan may seem impossible. Fortunately, however, even someone with bad credit can receive a $10,000 loan by following a few simple rules and familiarizing yourself with all possible options to decide the best move.

What to do when in need of a large loan

Today, it is not surprising that many people, especially business owners, need large loan amounts of $10,000 or even more. Although this is understandable, if you are one of these many people, it is important that you take a step back and think carefully about why exactly you need a loan of this amount and how you plan to pay it back. If you spend significantly more per year than you earn, or if you’re currently unemployed, it’s probably a good idea not to borrow more money to avoid sinking deeper into debt. Ideally, the only type of person who should get a very large loan is someone in transition. If you were recently offered a job but won’t start your new job for a few months, you may need a large loan to keep up with your expenses until you start working. Otherwise, those considering a loan of $10,000 or more should probably focus on managing their debt rather than creating more.

With that in mind, even once you’ve decided that getting a large loan is in your best interest, it’s highly recommended that you eliminate some of your larger expenses and payments. For example, it might be smart to post your car lease online so someone else can take over. A lavish lifestyle and accumulating debt don’t go hand in hand, so make sure you get rid of excess. Once you have decided on the loan and feel confident that you will be able to pay it back, the following potential options are open to you:

signature loans

Signature loans are exactly what they sound like: loans guaranteed by a signature. Designed for those with excellent credit, getting an exclusive loan will typically require a steady job and a relatively high credit score. Also, they tend to have high interest rates of 11% or more. For those with bad credit, a signature loan is probably not your best option.

auto loans

If you have a car that has been paid off, an auto loan may be your best option if you don’t have exceptional credit. As long as your car is currently reserved for more than $10,000, it is quite possible to use your car as collateral for the $10,000 loan.

Home Equity/Mortgage Loans

If your home currently has equity or has been paid off in full, it will probably be fairly easy to secure an equity loan or mortgage on the money. If you have bad credit, it would be a good idea to save a good down payment, and eventually it’s important to refinance as soon as possible to avoid spending massive amounts of excessive interest rates.

private loans

If the loan types above don’t seem like smart options for you, you may want to consider private loans. While private loans aren’t the easiest to obtain, you can start by turning to family members, who will likely lend to you even if you have poor credit. Although this may sound embarrassing, it will be worth it in the end. As long as you take responsibility for getting rid of other excess spending and are proactive about getting back on track financially, family members will see that you’re serious about paying back.

Personal loans

Often when people refer to personal loans, they mean exclusive loans. As mentioned, it is difficult to guarantee these loans with bad credit because the banks consider it high risk. To get a bad credit personal loan, you’ll need to find a co-signer who can use your credit to help you secure the loan. The best people to ask to sign with you are family, friends, and spouses.