There is no doubt that life without access to credit is indeed very difficult. Dealing with the financial pressures of modern life means accessing additional funds from time to time, and sometimes a large sum. However, getting an unsecured $ 10,000 personal loan can be difficult.
The good news is that despite poor creditworthiness, it is possible to get approval as long as the set criteria are met and some key aspects of the application process are carefully considered. First of all, there is little point in contacting traditional lenders if your credit rating is very low, although a working bank account and the addition of a co-signer can have tremendous benefits.
However, it is important to remember that a personal loan can be secured even with very poor credit scores if the right application is made to the right lender.
Search among alternative lenders
Typically, the best place to get unsecured $ 10,000 personal loans is not for traditional lenders like banks. The reason is simple: traditional lenders are extremely cautious and are more likely to reject a bad borrower’s application. Alternative lenders such as online lenders are much more open to these options.
The advantages of online lenders are that they are recognized experts in lending to bad credit borrowers and offer packages tailored to the needs of this niche market. So interest rates are more competitive (though not always very low) and repayment plans are more flexible. And because they respond to the needs of applicants with poor credit ratings, approval is much more likely despite poor credit ratings.
However, it is important to check the reputation of an unknown lender. Therefore, visit the Better Business Bureau website or the Verify1st website to check if there are any dubious connections to the lender before making a personal loan application.
Do you have an active bank account?
Nowadays we all have our bank account, but for every loan application the lender must be shown that your own bank account works. This is because the lender wants to be able to easily transfer funds and withdraw funds with minimal effort each month with a $ 10,000 unsecured personal loan.
The great advantage of this system is that it becomes practically impossible for the borrower to forget the repayment schedule, simply by debiting the amount from their bank account on a pre-approved day. This facilitates approval despite poor creditworthiness, since the risk of default is reduced so much.
In addition, bank accounts provide lenders with certainty knowing that a fixed income is earned every month. Without an active bank account, the lender can be suspicious of the reliability of the income, which negatively affects the chances of being approved for the personal loan.
Consider getting a guarantee
The next thing that can come closest to a guaranteed unsecured personal loan of $ 10,000 is to include a guarantor in the loan application, also known as a co-signer. This person basically provides a guarantee that the monthly repayments will be made even if the borrower cannot make them. And since this means that the lender’s risk is reduced to practically zero, interest rates are low and debt is all the more favorable.
In these circumstances, it is easy to get approval despite poor credit. In order to be accepted, a co-signer must have an excellent credit history and a sufficiently reliable income to cover the repayments should this become necessary. Of course, it can be worth taking the time to find the right candidate, as approval of the personal loan is almost guaranteed.