How Getting $50,000 Personal Loans With Bad Credit Can Be Possible

Austerity dictates that the confidence we once had in loan applications no longer exists. It seems that everyone - especially banks and other lending institutions – has tightened the purse strings, lessening the availability of loans. Borrowing large sums, like a $50,000 personal loan, with bad credit surely is impossible.In fact, it is not impossible, but it is now necessary to look outside the box when considering your application and where to send it. Of course, this is nothing new since there has never been guaranteed loan approval, but if the application is properly prepared, then the chances of success improve greatly.Obviously, to secure a large personal loan, it is necessary to put come effort into application preparations. So, what is the best strategy? And what are the decisions that need to be made before submitting your application?Choose Your LenderArguably, the first decision to make is what lender to apply to. This decision dictates some of the key factors of the application, so knowing where your application for a $50,000 personal loan with bad credit is going can help to prepare for the conditions set by the chosen lender.The choice really comes down to two options – a traditional lender or an online lender. Banks are often an automatic choice, but the truth is that they do not offer the best terms, especially to a bad credit borrower. Interest rates are higher, and repayment terms are extremely strict. The overall costs are likely to make the loan unaffordable.In the absence of any kind of guaranteed loan approval convincing a traditional lender is extremely difficult. But online lenders are a different matter. As expert bad credit lenders, they offer terms that are more suited to the situation bad credit borrowers are in. The interest rates are slightly lower but the repayment term is longer, thus keeping the monthly repayments on a large personal loan affordable.Ensuring Loan AffordabilityThe key to any loan application is that the loan itself is proven to be affordable. This is the challenge when seeking a $50,000 personal loan with bad credit. But it is possible to do so even with a loan of this amount, if the amount of excess income is large enough.The excess income, of course, is what is left over when the regular monthly expenses are taken from the monthly income. But it is the debt-to-income ratio that has most influence in the matter. It states that a maximum 40% of the figure can be committed to repaying debts. This means that even a large income cannot guarantee loan approval.For example, even with a monthly income of $10,000, if the monthly outgoings amount to $9,000, it means the excess income is $1,000. However, the ratio limits repayments to $400. This can work against the chances of securing a large personal loan.Adding a CosignerSo, is there anything to be done that will swing the approval decision in your favor?  The good news is that there is. When seeking a $50,000 personal loan with bad credit, providing security is the best move to make. However, collateral worth $50,000 is likely to be difficult to find, making a cosigner the most logical optionA cosigner acts as a guarantor for the loan, promising to make the necessary repayments in the event that the borrower is not longer able to. The result is that the risk involved in the loan is practically removed, taking the applicant as close to guaranteed loan approval as is possible.Remember, however, that the cosigner has to be acceptable for a large personal loan. To be so, they need to have an excellent credit history and a large enough excess income.