Option 1 – Personal Unsecured Loan for 4000
Both of your options that we will discuss come from a bank such as Wells Fargo, Bank of America, or Chase – strong, household names where you won’t have to pay extremely high payday loan rates. Your first option, the unsecured personal loan can be a great option for those with good credit. Generally speaking, the minimum amounts a bank will lend you will be a 3000 loan – they won’t lend less than that simply because origination costs make it very difficult for them to make money off of such a small dollar loan.
So what exactly is an ‘unsecured’ loan? The word unsecured simply means that nothing but your good credit is ‘securing’ or backing up the loan. You are not pledging your home, car, or other asset that the bank can take if you default. As such, you are not taking on as much risk…which means the bank is and they will require good credit. In our current environment it is not atypical to require a credit score above 650 and a steady source of income to qualify for the loan.
Option 2 – Secured 4000 Personal Loan
A secured loan is just what it sounds like – it is a personal loan that is backed by some kind of asset. Common assets people pledge for these loans are stocks, bonds, homes (think home equity loans), and cars. Because good, valuable assets are backing the loan the bank is taking on less risk and are therefore much more willing to lend you the money. You may even have a chance of getting loans for 4000 if you have bad credit as long as they are secured by enough solid assets (be aware, if you do have bad credit they will demand that you pledge more than if you had good credit).
So How Do You Get a 4000 Loan With Bad Credit?
Well, we’ve already talked about one way to get a bad credit loan by pledging a good amount of assets. Of course, you will have to pledge something around $8,000 – $10,000 worth of stock or bonds if you want this loan or have more than that in equity in your home or car in order to secure the loan that way.
Another way you can secure a 4000 dollar loan with a bad credit score would be to find a co-signer. A co-signer is someone who is willing to back YOUR loan with THEIR name and credit score, thus boosting your credit profile and making you much less of a risk to the bank. To be honest, most people who don’t have the best credit should check out this option first. Having a good, strong co-signer will not only get them a good interest rate on the loan, but this type of loan also builds your credit history and score up as you pay off the loan on time (something a payday or title loan WON’T do).