How to Get a Large Loan

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Getting a large loan is easy if you have an excellent credit score and collateral. Large loans are also available without collateral, but generally the larger the loan, the greater the need for collateral. Some banks advertise unsecured signature loans for as much as $100,000, but approval standards are usually extremely rigid. Having adequate collateral makes approval a lot easier.

  • Get your credit report and score. Order the credit report from Annual Credit Report (annualcreditreport.com), a website authorized by the Federal Trade Commission to offer free credit reports under the Fair Credit Reporting Act (see Resources). Order your credit score separately, for a fee, after receiving the report.

  • Compare your credit score with generally accepted standards for excellent credit. Privacy Rights Clearinghouse, a nonprofit consumer information company, reports that credit scores range from 300 to 850, with scores of 720 or higher necessary for the best interest rates. Approval standards can vary with the lender, but generally you'll want a credit score of at least 720 for approval on a large loan without collateral. A large loan with collateral may be possible with a much lower score. Ideally, your credit report should not reflect recent bankruptcies, judgments or foreclosures -- all indications that you may be having financial problems.

  • Review your banking relationships. Your chances for approval on a large loan may be better if you apply at a bank or credit union where you already have existing business, such as credit card account, installment loan or savings account. Review how well you have paid the loan accounts by checking your billing statements or calling customer service to ask how many times you have been late -- if any -- over the past 12 to 24 months.

  • Determine if you have any assets that could be used as collateral. Equity in your home could be used, for example. Or you could offer certificates of deposit that you have on deposit at the bank.

  • Apply for a large loan, preferably at a bank or credit union where you have a good relationship. Apply for an unsecured loan if you have an excellent credit score and the income to support the loan. Or apply for a secured loan, such as a home equity loan, if you have collateral.

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