$25,000 Unsecured Loans: How to Improve Approval Chances

There is a school of thought that when it comes to seeking approval on an application for a $25,000 unsecured loan, bad credit scores are almost certain to ruin the chances. But this is actually not a very accurate belief. What is more accurate is the idea that some careful measures need to be taken to increase the chances of getting the green light.Most applicants like to dream of having guaranteed loan approvals, but it is better to focus on reality and the realistic terms that lenders find agreeable, it is possible to better strategize.There are three principal areas in which an applicant can strengthen their application for an unsecured loan: namely, securing a cosigner; addressing low credit scores; and providing confirmation of income.Secure a CosignerThis is a major addition for any applicant to include in their application for $25,000 unsecured loans. The chief issue for any lender is the unsecured status of the loan, and the fact that in such cases a confirmed statement of income is the only thing that lenders can go on.The weakness of this kind of application lies in the fact that, should the borrower fail to make repayments, then the lender has nothing to use to recover losses. However, a cosigner promises to pay the repayments in the event that the borrower fails to. This adds great security to the loan deal, as far as the lender is concerned, and in doing so, bring the applicant as close to guaranteed loan approvals as they ever will.Of course, the cosigner needs to have an excellent credit history, and a monthly income that is enough to cover repayments on the unsecured loan, if that becomes necessary.Address Low Credit ScoresThis might require some pre-planning, but by improving their credit scores, applicants strengthen their position in their quest to get a $25,000 unsecured loan. The problem with low scores is that they indicate a high level of risk for the lenders. The result is that either they are not willing to accept the risk, or they charge exorbitant interest rates to compensate.The scores can be improved by taking on some smaller personal loans and repaying them on time. With every loan that is repaid (regardless of their size), the score is improved. So, by repaying 5 or 6 small loans over the course of a year, for example, it is possible to raise the score considerably. This does not necessarily mean guaranteed loan approval, but it certainly helps.The best loans to get are payday loans. They range in size from $100 to $1,500, and can be repaid in as little as 14 days, though 30 days is more usual. A negative aspect is that interest rates are very high (30%), and this means they are costly. But getting a larger unsecured loan as a result makes it worth it.Income ConfirmationThis is a logical requirement, with lenders needing things like confirmation of employment and the amount of income earned to be sure that the borrower is able to make the repayments in the first place. A $25,000 unsecured loan is certain to have a significant repayment sum each month.But it is not just the income amount, it is the amount of income free to dedicate to paying a new loan. This means that all of the existing debt, along with typical monthly expenses, are added up to discover the balance. Virtual guaranteed loan approval is enjoyed if the repayment sum is 40% or less of the total excess income remaining.Unsecured loans are not the favorite of lenders because of the risks involved, but with these measures their fears are likely to subside.