How to Get a Large Personal Loan

Personal loans are the most difficult type of loan to be granted since they are not secured by collateral like a home or car and there is no guarantee to the bank that you will not default on the loan. Large personal loans are considered to be loans that are over $7,000 in total amount and can take up to 2 weeks to gain approval from most banks. Here is a guide to increase your chances of getting a large personal loan.

Difficulty: Moderately Challenging

Instructions

1. Check your credit prior to applying for a loan. Banks will not grant personal loans to individuals they deem to be not creditworthy. Credit-worthy individuals usually have a 7-year history of paying credit cards on time with no late payments or delinquent accounts. In addition, credit-worthy individuals do not have negative items reported on their credit in the form of collection accounts or charged-off accounts due to nonpayment. If your credit report meets these minimum requirements, you can proceed with your application.

2. Make note of your assets that could be secured as collateral for the loan in the event you were to default. Acceptable sources of collateral include home equity, cars and money in the bank. Take the value of your assets and ensure that it matches or exceeds the amount you wish to borrow.

3. Apply with a bank you have a good, long-standing history of doing business with, as they will be the most inclined to grant a large personal loan to you with the least amount of hassle. It is best to choose a bank that has a record of positive transactions with you over a long period as well as a bank that holds a majority of your spendable cash on a regular basis.

4. Bring your bank statements, W-2 forms, tax returns and paycheck stubs with you when applying for a personal loan. These are all documents that the loan officer will need to qualify you for a personal loan and determine the amount you can borrow.

5. Complete the loan application and provide the loan officer with your list of assets that can be used as collateral in the event of a default. If there is not a place on the application for you to enter in your assets, ask for an additional statement page to declare when your loan officer is submitting your file.

6. Wait for your loan approval. This could take as little as a few hours or as long as 2 weeks. Be patient and follow up with your loan officer if you have questions. Once approved, go in and sign the final paperwork that will release the check for your personal loan.

Tips & Warnings

• When adding assets to your application, it is best if they are not currently financed or have only a few months left until their maturity or end date.