Knowing how to get a $10,000 bad credit loan can make a big difference in the amount of money you save in finance charges. The type of collateral you use to secure the loan will affect your interest rate and length of repayment. If you are in the process of repairing some of your bad credit, it will be easier to get a $10,000 bad credit loan. You may have to check a few different lending sources, before you find one that will approve your request.
- A $10,000 bad credit loan will be hard to find unless you have some collateral. Most lenders will not make you an unsecured loan if your credit is damaged. If you can put up one or more assets to secure the loan, you may be able to get approved if the lender is comfortable with the risk. The lendable value of the collateral will determine your loan amount. For example, if you have equity in your home you can request a second mortgage loan from your lender. They will have an appraisal done, and if the valuation has enough room for the lender to make you a $10,000 loan, they will discuss how to structure the loan so it is within your budget.
- If you do not own your home, there are many other types of collateral you can use to get a $10,000 bad credit loan. You could put up a car that is paid for, stocks, a savings account, or a combination of one or more other assets you own. Ask your lender what they are willing to accept as collateral, and the interest rate and term of the loan for each.
- If your lender will not make you a $10,000 bad credit loan, check online for lenders who specialize in bad credit. Make sure you find out the interest rate they charge before you submit your application. Do not use an online lender if they are charging an outrageous rate. Check several sources, until you find one with favorable loan terms.
- Using a co-signer may help you get a $10,000 bad credit loan. Try friends or family, and if necessary pay them a fee for their willingness to help you get your loan. The lender may even give you a better loan package if your co-signer has a solid credit rating.
- If you are still unable to get a $10,000 bad credit loan, try to fix your credit. Contact the creditors that you are late in paying, and arrange a repayment schedule. Even if you are unable to pay a large amount each month, by showing some effort to repay, a lender will see that you do not walk away from your credit obligations. This may be the deciding factor in getting your loan approved.