$50,000 Unsecured Personal Loans With Bad Credit: How to Get Much-Needed Funds

Large loans might seem like a pipe-dream when credit ratings are very low, but it is surprising how accessible even a $50,000 unsecured personal loan with bad credit is. By getting the application in proper order, the chances of securing practically any loan sum are greatly improved.Of course, there is no such thing as guaranteed loan approval, so it would be very foolish to take a lax view of the issue and think no effort needs to go into formulating the application. A strong application is likely to need some work, with steps taken in advance to enhance the chances of success.Amongst the steps to take are identifying the right lender to apply to, and improving the credit score as much as possible. This usually takes a little time, but the effort is well worth it when it finally comes to applying for an unsecured personal loan.Opting for Online LendersBy and large, the best loan terms available these days are from online lenders. Traditional banks have very strict terms so the chances of getting a $50,000 unsecured personal loan with bad credit is more or less impossible. The repayments are highly unlikely to be affordable, given the higher interest rates charged.However, online lenders are recognized as experts in lending to bad credit borrowers, and as such can offer better terms like lower interest rates and more flexible repayment schedules. When it comes to small loans, of perhaps $1,000 or so, lenders do offer guaranteed loan approval with no credit checks, but with larger sums that luxury is not offered.The reality of the situation is that a large unsecured personal loan will have risks, and while online lenders are more accommodating, they still require assurance that repayments will be made without a hitch.Income and the Debt-to-Income RatioWhen it comes to applying for a large loan, like a $50,000 unsecured personal loan, with bad credit, there is little chance of getting a green light unless there is ample income to cover the repayments. But having a large income is not in itself enough to get approval. The ability to meet the repayment schedule is more important than any other factor.For this reason, lenders are always interested in the debt-to-income ratio the applicant has. The ratio is set at 40:60, and is strictly adhered to by lenders. It means that a maximum 40% share of income can be dedicated to repaying loans. If the ratio is broken, then the application will be rejected. So, even with a monthly income of $10,000 there can be no guaranteed loan approval.For this reason, it is worth the time taken to reduce existing debt before applying for a such a large unsecured personal loan. A series of smaller loans can be used to clear individual debts, thus improving the debt-to-income ratio.Consider Getting a CosignerProbably the surest way of getting a $50,000 unsecured personal loan with bad credit, is to include a cosigner in the application. With someone to guarantee repayments, lenders can feel more confident they will get their money back. And with the risks practically removed, the borrower can enjoy the closest thing to guaranteed loan approval.However, there are some conditions. For a start, not just anyone can be a consigner. He or she must have an excellent credit history and have a good enough debt-to-income ratio to be able to handle making repayments, if that becomes necessary. And even with the addition of a cosigner, the unsecured personal loan still needs to be affordable for the borrower.