Reasons Why a 5000 Loan Can Be Difficult to Secure
The main difficulty that you face in securing a loan in this amount if you need it fast and have bad credit is the amount itself. Most bad credit lending companies do not like to lend that much cash – most loans range between $500 and $1500 dollars. They especially don’t like to let you borrow the money long-term and instead structure the loan to be a short, two week payback period.
So what can you do if you need a 5000 loan with bad credit? You have two main options:
- Find a payday lender willing to extend a 5000 dollar loan with no credit check. While these loans are more difficult to come by, they do exist – you will just have to search for them. Sometimes there are companies who act like brokers for such loans, and they claim they can get you a loan up to 5000 – unfortunately, many times this doesn’t work out. They take your information and submit it to several different lending networks, get the bids and bring them back to you, and sometimes there just isn’t a bid for $5K. However, this is still an option, but make sure you understand all the costs associated with the loan and how the structure works. These are very expensive loans, especially if your are needing 5000 dollars.
- Apply at a bank or a credit union. Yes, after reading that you are probably thinking that I am drunk or high and that banks or credit unions don’t extend loans to people with bad credit scores. However, there is a simple way to improve your credit score and get that 5000 dollars loan: find a co-signer who has good credit, and who is willing to sign on the dotted line next to your name. The upside? You get lower (much, much, much lower) financing costs than you would with payday loans, and you have a much longer time period to pay the loan off. Furthermore, traditional banks and credit unions do offer 5000 unsecured personal loans – many will go down even as low as offering a 3000 dollar loan that is unsecured.
Summary
The bottom line is that is is possible (although difficult) to secure 5000 dollar loans. Just remember – make yourself a ‘lower risk’ to the lending institution and it will make it that much easier for yourself.