Borrowing up to $25,000 Without Collateral

In today's tough economic climate, more and more people are finding themselves in need of a large sum of money. It could be a major medical emergency or a costly home repair. Whatever the reason, it is sometimes necessary to borrow at least $25,000 or more without providing collateral for the loan.

If you are considering applying for this type of loan, there are things you can do beforehand to be fully prepared for the application process and also to improve your chances of being approved.

More than likely, you will be contacting several different lenders, so make sure you have all your paperwork together before you meet with each one. This should include all of your financial records, as well as personal information and references. You will need to show evidence to support all sources of income, including your work, other business revenues, and any monetary support from family members.

Lenders will want to see that you are an organized, reliable person. Write down any pertinent information, including a letter explaining why you are applying for this loan and what it will be used for. The more information you have ready for them means the less they will have to ask for.

It also indicates to them that you have taken the time to fully prepare for the meeting and that you understand the serious nature of what you are asking. An unsecured personal loan of $25,000 or more is a large sum of money. You want them to have a positive opinion of your trustworthiness and financial reliability.

Try to think of questions they may ask you when going over your application and have your answers ready. Make sure you read over all of your paperwork so that you are familiar with everything it contains. The last thing you want is for a potential lender to ask you a question about something in your file and you can't give them an answer. Again, preparation is the key.

If you have an excellent credit history and high credit score, being approved for a large unsecured loan is a much easier process. On the other hand, if there are negative items in your credit history, try to clean them up as much as possible before applying for a personal loan. Be sure to get a copy of your credit report and check it for any mistakes or outdated information. All potential lenders will pull your credit report when you apply for a loan, so it's important that you know what it contains and that the information is true and accurate.

When applying for a loan of this size, you should expect that you will not get an approval from every lender. It can also take a good amount of time so don't expect an overnight decision. Be prepared to handle the entire application and approval process, however long it takes.

If you want to improve your chances of being approved, you can try to find some valuable item that you own that could be used for collateral. The bank's view of its value may differ from yours, so be prepared for it not to be accepted. However, it is certainly worth a try.

Finally, if you know someone who has an excellent credit history, ask if they would be willing to co-sign your loan. By doing this, they become responsible for the loan should you ever default. This is a serious request to make so be certain that you are fully able to repay the loan yourself. If you aren't completely sure, re-consider your options.