Why a $10,000 Personal Loan for Bad Credit is Likely to be Approved

Apr 20 17:41 2013 Melissa Kellet Print This Article

Getting approval on large personal loans is not easy when bad credit is involved. But a $10,000 personal loan for bad credit could be approved because the loan is intended for a specific purpose.

While most unsecured personal loans to be approved by lenders are small,Guest Posting it is not impossible to get larger sums, like $10,000 personal loans, for bad credit. True, when bad credit is a factor, then it would seem that such a large sum is impossible to get, but there is a crucial element that should not be overlooked.That element is purpose, and when the purpose is to address a bad credit score or to take control of personal debts, lenders are much more accommodating. This is because a $10,000 loan to clear bad credit or existing debts is much more preferable than a $10,000 loan to use for all kinds of everything.In essence, a lender wants to know that the borrower is a responsible person, not one that will waste money foolishly. So, when seeking personal loan approval, despite bad credit, it is a good idea to provide details on what the loan funds will be spent on.Why Purpose is So ImportantWithout doubt, criteria need to be met when applying for any loan, but while purpose is not usually on that list, it is always a good thing to provide. Often, the factor that swings the application towards approval is that the purpose specified is a practical and constructive purpose, not frivolous. A $10,000 personal loan for bad credit is a perfect example.Normally, a large loan is unlikely to be approved on the grounds that an applicant with a bad credit score is statistically more likely to default on a loan than someone with an excellent credit score. But a $10,000 loan to clear bad credit shows that the applicant is taking a proactive step towards improving his or her credit rating.And since the purpose is to improve or clear bad credit, the last thing that the borrower will do is default and, thus, make their credit score even worse. So, personal loan approval, despite bad credit, is more likely when clearing debts is the motivation.Providing DetailsOf course, stating the purpose is one thing, but how can the lender be sure that is the case? It is always possible that a $10,000 personal loan for bad credit clearance may be spent on something else, but such fraud is extremely rare.For anyone applying for a $10,000 loan to clear bad credit, the best thing to do is provide details on where every penny is to go. For example, the applicant might state that credit card debt worth $5,600, a personal loan balance of $3,400 and outstanding utility bills of $1,000 will be paid off with the loan.These details show that the applicant has a clear plan, and so granting personal loan approval despite bad credit is not seen as such a major risk.Finding a LenderOf course, getting approval on a $10,000 personal loan for bad credit is dependent on the chosen lender. Some traditional lenders have very strict lending policies, so the sum alone can prompt rejection as a matter of policy. Your local branch might be more accommodating since they are familiar with your character, but may require more than normal details to approve a $10,000 loan to clear bad credit.Generally, however, online lenders are much more accommodating, with better interest rates and repayment schedules too. What is more, personal loan approval despite bad credit is statistically higher with online lenders.

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About Article Author

Melissa Kellet
Melissa Kellet

Melissa Kellett has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Bad Credit Loans Guaranteed and also in helping people to get approved for home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards, Bad Credit Mortgage Loans among many other financial products. For further information, please visit http://www.speedybadcreditloans.com

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