How to Get $60,000 Loans With No Collateral

How to Get $60,000 Loans With No Collateral. Life is certainly full of surprises and unfortunately, some of those surprises require quite a bit of cash at once. Maybe you need money for an addition on the house, a kid's college tuition or to cover soaring healthcare costs. Here are some tips on how you can get $60,000 with absolutely no collateral.

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Step 1

Establish an excellent credit report. Because you are attempting to secure a sizeable personal loan without any collateral, you have to show the lender that you have a track record of being responsible with the money which has been lent to you. This means that for 3 years prior to seeking such a loan, you must pay every bill that hits your credit report on time. That's everything from the cable bill to the water bill to other credit card bills. Also, if you have negative items on your credit report, have them removed. This can be done by paying any monies owed (so they'll show a zero balance) or checking the statue of limitations in the state where the delinquency occurred (this is between 3 and 8 years). If it's longer than the statute, you don't have to pay the money back.

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Step 2

Apply for credit cards. A credit card is a completely unsecured loan. This means while a credit card company will threaten you 17 ways to Sunday if you don't pay them back, there's nothing they can repossess to get their money back. This why it is considered different from an auto or home loan. If your credit report is in decent shape and you have an overall low debt ratio and have a steady job, you will have no problems getting approved for credit cards. You may not get all $60,000 at once, but after 6 months, ask for increases on your credit cards until you reach that threshold.

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Step 3

Contact personal loan lenders. They will offer you cash that can be wired to your checking account within a couple of days. However, there are a few things to look out for when obtaining these loans, the first of which is the interest rate. Make sure that is better than a cash advance from one of your credit cards. Second is the repayment terms. Make sure you can pay the loan back early without a penalty. Also check the length of the loan. Most of these lenders offer terms up to 7 years. With interest, that means you need to be prepared to pay upwards of $900 per month on an average interest rate. Don't obtain the loan if you can't make the payments.

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Step 4

Seek lender-to-lender sites on the web. There are some sites, such as Prosper.com, where people lend to other people. After signing up for the service, they run a check on your credit. Then depending on how good your credit is, they approve you for a certain amount of money at a certain interest rate. You then create a profile of yourself (picture optional) where you tell the Prosper community why you need the money. Then people pledge money to your loan. Once you've reached the amount of your loan, it give you the funds and you have your cash in hand. Just be conscious that if you squelch on this loan, it will not only show up on your credit report, but you'll get a negative mark on your Prosper account that will cause people not to lend you money.

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Step 5

Ask friends and family for the money until you reach your goal. This is the best possible scenario for you if you can swallow your pride and do the asking. This loan will never show up on your credit report, and you can probably convince your family to allow a simple interest loan at a favorable rate. Even if this accounts for only part of the money you need, it's well worth the interest savings.

Warning

Be very careful of the interest rates of unsecured loans. Many of the companies which advertise on television and radio will charge close to 100-percent interest on the money. That means if you borrow $5,000 and follow their payment plan, you'll end up paying $10,000. That's a steep premium on money.

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