Author Box
Articles Categories
All Categories
Articles Resources

$25,000 Unsecured Loans Are Available Regardless of Credit Ratings

March 14, 2012 | Comments: 0 | Views: 193

Anyone who believes that getting $25,000 unsecured loans is an impossibility with bad credit will be pleased to learn that this is not true. However, since applications are not approved randomly, the need to meet necessary criteria is very strong.

While most applicants are aware that criteria are the core concern when seeking large loan approval without security, not all are aware that credit ratings are only a small part of info that influences the final decision.

In fact, the credit rating - whether it is good, bad or simply average - is no great issue at all. When seeking loans with no security, it is the lack of collateral that is the bigger issue.

Why Credit Scores are Only a Guide

It is not hard to understand why so many people believe low credit scores will ruin any chance of getting a $25,000 unsecured loan. But the score itself is only a guide to the lender, indicating the repayment trend that someone has and allowing them to understand the applicant better.

Nevertheless, large loan approval without security can never be granted lightly. This is why lenders protect themselves by setting a higher interest rate in line with the perceived risk of the score.

For example, a low score like 400 will prompt a higher interest rate than a score of 500, which will have a higher rate than 600. The simple fact is that getting loans with bad credit with no security involves some compromise.

Loan Limits

Recognizing that bad credit scores are not a killer to a finance deal is one thing; being able to secure the kind of cash that is needed is another, and this is where applications for a $25,000 unsecured loan can stumble. Most lenders have very strict loan limits on unsecured loans, thus sometimes preventing approval.

The problem is simply that lenders want to protect themselves as much as possible. So, when seeking large loan approval without security, a limit of $30,000 is normal and anything bigger than that is practically impossible without a cosigner at least. You might also choose to borrow against home equity, though a maximum of 60% of the available equity is usually the limit.

While limiting loans with no security certainly benefits the lender, it can also benefit the applicant, who might otherwise find themselves in deeper financial waters.

How to Find a Loan

There is no exclusivity clause on any loan agreements. Lenders only care if the borrower can repay the loan or not, and if they can then the loan will be approved. A $25,000 unsecured loan may be granted to an applicant with a monthly salary of $4,000, but be refused to someone earning twice that if the available excess income is not enough to handle the repayments.

Anyone who has their application in order can convince a lender to give the green light. And to do this, an applicant needs to do some careful research into the available options, rates and policies so as to identify the right lender to apply to. A large loan approval without security is only attainable if the right steps are taken.

To start, look for lenders that fit your ball-park requirements, then whittle your shortlist down to two or three. Study their respective loan policies, looking for penalties and charges in the small print, and determine whether your application can meet their approval criteria. If qualification for a loan with no security is doubtful, then forget about them and move on.

Check your budget, and work out what the maximum monthly repayments affordable are. When the best lender is identified, then send them an application, leaving nothing to question.

Once these steps are taken, approval is more likely - though never guaranteed.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Military Loans for Bad Credit. Hilary publishes informative articles about Bad Credit Loans and other financial topics at

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Bad Credit Loan


Guaranteed Loans


Unsecured Loan


No Credit Check Loan


Personal Loans With Bad Credit

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Finding a lender that is willing to approve unsecured personal loans with bad credit is not impossible. But being in the know makes the whole application process a lot easier, and approval more

By: Hilary Bowmanl Finance > Unsecured Loansl April 26, 2012 lViews: 343

Looking for $25,000 unsecured personal loans can be hard what with no security and low credit scores as both features. But by considering some issues carefully, your chances of approval are increased.

By: Sarah Dinkinsl Finance > Unsecured Loansl April 23, 2012 lViews: 178

Convincing lenders to approve a $25,000 unsecured loan is not a simple case of filling out the application form. But there are some steps to take that will improve the chances of success.

By: Mary Wisel Finance > Unsecured Loansl April 20, 2012 lViews: 175

The introduction of the internet has revolutionised the finance industry, not only increasing the types of loans available, but making them much more accessible too. One sector of the finance

By: Jason C Scottl Finance > Unsecured Loansl April 18, 2012 lViews: 178

Most of us live from payday to payday with limited salaries coming our way. With limited income and expenses on a rise, there is no way that you can meet the urgent situations that need immediate

By: Stephen Broadl Finance > Unsecured Loansl April 15, 2012 lViews: 179

A relatively new type of unsecured loan is the guarantor loan, as with all unsecured loans they do not require the security of a property however they will require a guarantor to support the

By: Jason C Scottl Finance > Unsecured Loansl April 13, 2012 lViews: 339

Refinancing a home loan with bad credit is a great option if you want to enjoy the benefits of lower interest and monthly payments. This article will reveal the basic facts about the refinance

By: Hilary Bowmanl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 139

When it comes to military loans requiring no credit checks, there are positives and negatives to them. But the positives are hard to ignore, with both short-term and long-term advantages to be

By: Hilary Bowmanl Finance > VA Loansl June 27, 2012 lViews: 166

When applying for mortgage loans with bad credit, a few areas need to be addressed properly. In fact, there are three, each of which are more influential than any credit rating.

By: Hilary Bowmanl Real Estate > Mortgage Refinancel June 10, 2012 lViews: 141

For those applying for home mortgage loans with bad credit, FICO ratings are not the death knell they seem. Though influential, the true risk calculated by lenders is based on other factors.

By: Hilary Bowmanl Real Estate > Mortgage Refinancel June 04, 2012 lViews: 145

Finding a traditional lender willing to approve a $5,000 personal loan for bad credit remains difficult. But with so many alternative options, securing such funds is hardly an impossibility.

By: Hilary Bowmanl Finance > Personal Loansl May 27, 2012 lViews: 239

Military members are eligible for special no credit check loans designed to help them in times of financial need. This article will review the basic information and qualifications for such loans.

By: Hilary Bowmanl Finance > VA Loansl May 22, 2012 lViews: 155

Discuss this Article

comments powered by Disqus