A lot of problems can be solved (or opportunities taken advantage of) with a $5000 loan. Bad credit will usually cause banks to turn you away, though. What do you do in this case?
As it turns out, there are a variety of lenders who may be able to help you. Read on to find out how to get a 5k loan, bad credit notwithstanding.
What Are Bad Credit Personal Loans?
Personal loans are usually “unsecured”. This means you don't have to put up something you own, like your car or house, as collateral. Unsecured loans do, unfortunately, come with higher interest rates.
You can theoretically borrow up to $35,000 in this way, but your credit score may limit you to lower amounts. A 5k bad credit loan is more realistic (and affordable).
Another feature of the typical bad credit 5k loan is that you're not expected to pay it back all at once. Instead, you'll repay the amount you borrowed plus interest a little at a time each month. Loan periods can range from a few months up to 3 years.
Can I Get a Bad Credit $5,000 Loan With Guaranteed Approval?
Guaranteed is too strong a word to use regarding bad credit personal loans. “Guaranteed approval $5000 loans” really means that almost everyone will qualify – Texas almost never sees a foot of snow, but it does happen occasionally. In the same way, a small percentage of applicants do get turned down.
There is good news if your credit score is low, though. While banks and other traditional lenders see your FICO number as the holy grail of personal loans, innovative financial companies are also willing to look more closely at your income, home and car ownership, and many other factors that show your ability to repay a 5k loan for bad credit. Approval still isn't totally guaranteed, but there's a good chance at least one lender will be willing to work with you.
How to Get a 5000 Loan for Bad Credit Easily?
The secret to obtaining an affordable $5000 loan, bad credit or not, is to search online. Filling out paper forms in various offices is no fun after the first dozen or so, especially if you're getting turned down by one lender after another. There's really no reason for torturing yourself in this way now that it's the 21st century.
Online, the approval process is far more streamlined – you'll often receive a decision within a couple of minutes. With a little luck, you may even see the money in your account the very same day once you've supplied all the necessary documentation.
Where Is The Best Place to Get a Bad Credit $5,000 Loan Online?
Even over the internet, applying to lenders one by one is tedious. Most of them don't make the details of their approval process public, so you never know whether or not you can qualify for one of their bad credit loans. Guaranteed approval $5000 advances may just not be accessible to you through any given company, forcing you to take out a lower amount or pay a ridiculous interest rate.
Using a loan broker like CocoLoan sidesteps all this frustration. The basic idea is that you only need to fill out one form, not dozens asking for basically the same information every time. CocoLoan will then do its best to find a bad credit 5k loan that meets all your needs.
Fast and Easy Loans You'll NeedApply Now
How Does CocoLoan Work?
If you want to loan 5k, bad credit limits your options. You won't know which avenues remain open to you, though. What you really need in this situation is a middleman who knows what lending companies are worth approaching.
Once you supply them with some personal and financial details, a process that takes only about 5 minutes to complete, CocoLoan will start applying for 5k loans for bad credit on your behalf. You don't need to do a thing: CocoLoan knows which lenders can offer you the best rates.
Only “soft” credit checks are run during this time, meaning that simply applying won't hurt your credit score. As loan offers become available, CocoLoan will forward them to you so that you may pick the best one.
How Does CocoLoan Compare
|Why Trust CocoLoan?|
|How much can you get?||$50 to $35,000||Zero upfront charges|
|What are the loan terms?||1 - 36 months||Easy repayment|
|Are credit checks needed?||Yes||Mostly soft pulls|
|Are bad credit accepted?||Yes||All credit considered|
|How to apply?||Totally online||Simple and straightforward|
What Are The Eligibility Criteria For a $5,000 Personal Loan?
There aren't all that many absolute requirements to get a $5000 loan. Bad credit won't automatically disqualify you, but will probably affect the amount of interest you'll have to pay.
- You have to be at least 18 years old and a citizen/permanent resident of the United States, with a Social Security number.
- You need to earn at least $1,000 per month and to have worked at the same company for the last 3 months.
- You have to have a checking account, phone number, and email address.
Some lenders have a few additional requirements, such as a proof of address like a recent utility bill.
What Are The Costs For a $5,000 Personal Loan?
Some lending companies will ask for an origination fee; an administrative charge for using their services. Other fees, like penalties for missed payments, may also apply. With most 5k loans with bad credit, however, you need to look most closely at the interest rate specified in your contract.
This, as well as origination fees, are often capped by laws in your state. If the maximum allowed rate is too low, this typically means that 5k loans for bad credit just aren't available where you live.
In general, you'll see an annual interest rate of somewhere between 17% and 40%. For comparison, credit card debt has an average rate of about 18% right now, with maximums of over 30%.
How much would you like to borrow?
What are the benefits of bad credit $5000 personal loans?
The main advantage of these loans is that they're very quick and easy to get. A low credit score by itself doesn't disqualify you, and you'll often get approval within minutes and cash the same or the following business day.
What are the differences between payday loans and personal loans?
Payday loans are meant to be paid back within 30 days (i.e. with your next paycheck). This means that they're typically for smaller amounts (under a thousand dollars), carry higher interest rates, and can't be repaid in installments.
What should I know before applying for a bad credit $5000 personal loan?
Any kind of high-interest loan should be taken out only after careful consideration and usually only in an emergency. You will always have to pay back more than you borrowed, so these loans aren't meant for ordinary or non-obligatory spending.