Getting a loan for any reason in today's financial market is a really tough job. And, no matter what kind of credit score you posses, the idea of finding an unsecured loan for a large sum, say, $50,000 seems downright outrageous. This fact can be compounded by bad credit.
Yet, if you are in a tough financial spot, $50,000 can make a world of difference in terms of keeping you going and getting your bills paid. However, this sum of money is far and above most individuals to lend privately, so no asking parents or friends. However, in some cases unsecured loans for $50,000 are given; review the following options for more details.
The Traditional Financial Institution
Anyone looking for a loan can and should consider their personal bank or their credit union. In fact, these institutions are giving loans to some people, even unsecured loans for $50,000. However, in the case of getting this type of loan from a bank, far more than a credit check will be in order. In addition, the bank will need to undertake a quite detailed background check which may include asking for personal references as well as digging into your financial history and present salary and work.
You see, the nature of an unsecured loan carries risk because if you default on repayment there is no hope for recovery in the form of repossession (such as with a car or home). You need to have your act together for this kind of loan at a bank. That includes a good job with an income that can support repayment and low debt otherwise.
Other Options Available
If your income and credit are insufficient to qualify you for a large unsecured personal loan, the next option is to find someone to cosign on the loan who meets those qualifications. The best bet here is a family member or very close friend. However, because your default on this loan will require your cosigner to repay it, there needs to be a serious evaluation independent of the talks with the bank. How do you plan to pay back this money and what will you do if you cannot?
The basic qualifications that a bank will look for in granting an unsecured loan for $50,000 include an income above $120,000 per year. This is what they deem to be sufficient enough to repay all debts given the other costs of life. Therefore, the income needs to be stable. If you have no way of qualifying in this respect, then your best option is to research and consider taking smaller unsecured loans that do not require a credit check. Generally, these loans can be anywhere from $2,000-$5,000.
Keep Your Guard Up in the Lending World
Listen, the financial collapse of the 2000's happened in part because predatory lenders gave money to people who could not afford to repay them. Though the recession put a lot of these people out of business, they are still out there. When you see ads that claim to grant cash advance loans for $50,000 you can bet they are a scam. They will either charge you obscene fees and leave you hanging or steal your identity. Either way, you need to be careful.
Ultimately, getting a loan for any amount of money in the current financial market is tough. You need to be certain that you have a real need for this cash and that you will have the means and ability to pay it back before moving on any further. Be responsible with your credit no matter how good or bad it is, because this is what will allow you to have a financially healthy future.