Author Box
Articles Categories
All Categories
Articles Resources

$5,000 Personal Loans for Bad Credit: No Myth, Thanks to the Range of Loan Options

May 27, 2012 | Comments: 0 | Views: 239

Getting any kind of loan can be a challenge to applicants who have a bad credit rating, but it is certainly not an impossibility. In fact, the simple rule is that once the necessary criteria is met, there is very little reason for a lender to turn an applicant down. With this in mind, an application for a $5,000 personal loan for bad credit has every chance of ending in approval.

Of course, a sum of $5,000 can go a long way to improving the financial situation any of us might be in. But securing that kind of loan is not a simple matter. Criteria needs to be met, and with traditional lenders, like banks, often charging high interest rates, the costs can sometimes make the effort not worth it.

But there are other lending options available, with $5,000 personal loans for bad credit by many of the alternative lending sources. So, it is worth considering these sources when trying to secure such loan.

Online Lenders

The most common alternative to traditional lenders are online lenders, who offer greater expertise. For that reason, a $5,000 personal loan for bad credit is more accessible, and much more affordable as they charge lower interest rates.

Approval rests on confirmation of the monthly income of the applicant. In fact, quite often loans are available without any credit check. But what must be provided in order to be approved is bank account details. Funds are released directly into a bank account and repayment sums usually withdrawn from the account on a specific day each month.

Finding a lender can be the most difficult thing, but by using comparison sites, it is relatively easy to find the best deal very quickly. In many ways, the online option is best.

Payday Loans

A second option when seeking a $5,000 personal loan for bad credit is to take out a series of payday loans. These loans are small, ranging from $100 to $1,500, so to raise the necessary funds, more than one is needed - though they do not need to be taken concurrently.

There are two main drawbacks, however. These loans are synonymous with high interest rates (perhaps as high as 30%) and with very short repayment schedules. So, a $1,000 loan may have to be repaid within 1 month, with a total repayment of $1,300.

This is a big ask, especially when the loan is secured against an upcoming paycheck. And given that $5,000 loan may need as many as 4 such loans, there can be considerable pressure to repay them.

Family Loans

A third loan source is much closer to home, with family members a possible option. Of course, getting a $5,000 loan depends largely on whether family members have the funds available, but if they do, there are definite advantages to the option.

For example, rarely will interest be a factor of the deal, so the repayments are set to be the lowest one could hope for. There can also be more flexibility afforded to the repayment schedule. But, as with all loans, it is a good idea to write everything down and have it signed.

Hilary Bowman is a Financial Expert who specializes in Loans for People with No Credit and Bad Credit Loans

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Personal Loans With Bad Credit


No Credit Check Loan


Unsecured Loan


Guaranteed Loans With Bad Credit

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

A payday loan is a high interest short-term loan designed to be covered within the next pay periods or two. As payment for the loan, the borrower either uses a direct debit authorization to their

By: Cooper N Ferrell Finance > Personal Loansl June 16, 2012 lViews: 247

The sudden pressure of financial emergencies can be crippling. But thanks to fast cash personal loans, the pressure can now be alleviated as quickly and efficiently.

By: Donna N Hammondl Finance > Personal Loansl June 10, 2012 lViews: 183

Many borrowers with bad credit assume that rejection for a personal loan is the end of their hope. That is not the truth, however, as there are several factors that go into assessing a loan

By: Mark Venitel Finance > Personal Loansl June 10, 2012 lViews: 202

Usually, people seeking to secure personal loans with bad credit scores are expected to see their efforts fail. But there are some options worth considering that can greatly improve the chances of

By: Sarah Dinkinsl Finance > Personal Loansl June 04, 2012 lViews: 143

This article discusses the Weemba social lending website and how this Miami based company differs from the peer to peer loan companies like Prosper, Lending Club, and Zopa. Microlending has become a

By: Chuck Flickl Finance > Personal Loansl May 28, 2012 lViews: 161

Sometimes in life you need cash right away. Perhaps you or one of your family members was in an accident and needs help covering medical expenses, maybe you lost your job and need some money to pay

By: Rocky C Rhodesl Finance > Personal Loansl May 25, 2012 lViews: 189

Refinancing a home loan with bad credit is a great option if you want to enjoy the benefits of lower interest and monthly payments. This article will reveal the basic facts about the refinance

By: Hilary Bowmanl Real Estate > Mortgage Refinancel July 02, 2012 lViews: 139

When it comes to military loans requiring no credit checks, there are positives and negatives to them. But the positives are hard to ignore, with both short-term and long-term advantages to be

By: Hilary Bowmanl Finance > VA Loansl June 27, 2012 lViews: 166

When applying for mortgage loans with bad credit, a few areas need to be addressed properly. In fact, there are three, each of which are more influential than any credit rating.

By: Hilary Bowmanl Real Estate > Mortgage Refinancel June 10, 2012 lViews: 141

For those applying for home mortgage loans with bad credit, FICO ratings are not the death knell they seem. Though influential, the true risk calculated by lenders is based on other factors.

By: Hilary Bowmanl Real Estate > Mortgage Refinancel June 04, 2012 lViews: 145

Military members are eligible for special no credit check loans designed to help them in times of financial need. This article will review the basic information and qualifications for such loans.

By: Hilary Bowmanl Finance > VA Loansl May 22, 2012 lViews: 155

Finding a lender that is willing to approve unsecured personal loans with bad credit is not impossible. But being in the know makes the whole application process a lot easier, and approval more

By: Hilary Bowmanl Finance > Unsecured Loansl April 26, 2012 lViews: 343

Discuss this Article

comments powered by Disqus