A lot of folks have always had a little trouble tending to their finances. These recessionary times have only compounded the problem. Some folks have turned around to suddenly find themselves in debt with many smaller loans that equal $10,000 or more. And they find themselves on the verge of defaulting on many of them. If you are in these circumstances, you should probably find a large loan to clean up those smaller debts.
Right now, because of a self-imposed credit crunch, many traditional lenders such as banks and credit unions are reluctant to grant large personal loans, even for folks with good credit, until they are sure that the economy will improve. If you have bad credit and need a substantial loan, you need to consider some alternatives.
The No Credit Check Large Loan Market
A good place to start your search for a no credit check large loan lender would be the business directories of the Better Business Bureau (BBB). Go to a BBB website and start your search for non-bank lenders in your area who specialize in large loans for people with poor credit.
The nice thing about the BBB directories is that you will be able to see how these lenders operate. The file on each lender will contain contact information, a profile of the company, the kind of products (loans) they offer, as well as a customer complaint registry. Of course, you will see a BBB rating ranging from A to F. Stick with the A-Lenders.
Approach the Lenders
Using contact information from the BBB lists, start making queries directly to the lender. Use email or get on the phone. Be frank and tell the lender that you have bad credit and need a large loan. The private lender will focus on your employment and salary rather than your credit scores. They will attempt to gauge the amount of disposable personal income (DPI). If you have a high DPI, the more likely these lenders will be to grant you a loan. And, the higher your DPI, the larger your loan may be.
If the person to whom you are speaking refuses your request or offers a loan amount below that which you need, ask to speak to a supervisor or a person higher on the chain of responsibility, especially if the loan was denied due to low DPI. Sometimes persistence of this nature pays off. Again, be quite frank with the next person as well. Tell them that you need a large loan and you have poor credit.
Taking the Next Step
Should you still be denied a loan because your DPI is low, ask the lender for suggestions regarding how you can land a large loan with poor credit. More often than not, the lender will probably suggest getting a cosigner. Having a cosigner on the loan could help approval and maybe even help to get a larger loan amount.
The lender may run a credit check on the cosigner, but not on yourself. The cosigner should have a high DPI income and a better credit rating than yourself. Is there the possibility that your wife or a trusted friend or family member would be able to sign on? The cosigner should be aware that the loan becomes their responsibility should you default for whatever reason.
Once you have been granted a large loan, be responsible. Perhaps put some of it away for a rainy day. If you successfully retire such a loan, it will improve your credit ratings.