In today’s economy where many people are struggling to pay their bills, millions are having their homes foreclosed and millions of others are declaring bankruptcy, you might think that it is impossible to get a 5000 dollar loan with bad credit, but it is not.
Some lenders realize that if they are going to do any business at all, they are going to have to expand their criteria to include people with poor credit. Private lenders have also sprung up online. These peer-to-peer lending arrangements can be a great option if you are able to persuade someone on one of these sites that you are truly a good risk now.
As for going through traditional lenders, if you have collateral your chances of getting a 5000 dollar loan are much better, even if you have bad credit. If you own a home, trailer, vehicle or something else of high value, a lender will look at your application much more favorably. Even then, however, the lender will charge you a higher-than-normal rate of interest for your repayment, and the terms might not be drawn out for longer than one year.
No Collateral + Bad Credit = 20% and More!
People with bad credit who do not have any collateral yet need an unsecured 5000 dollar loan have little chances. If you are approved by a lender, you can expect sky-high fees and interest rates. That’s why many people who need that amount of money seek out relatives first, then try the peer-to-peer lending sites.
An unsecured bad credit 5000 dollar loan will have the least favorable terms possible and should be avoided if they can be. Most of the loans in this category can be qualified as payday loans, and those are notorious for interest rates that can basically chop off up to ¼ (or more!) of what you earn each week or two. You need to ask yourself if a sudden influx of cash ($5000) is really what you need, or if you need to adopt a more patient approach to saving that amount.
Other options include getting multiple loans for smaller amounts and combining them, or finding a cosigner to secure the money that you need. A 5000 dollar loan with bad credit is not impossible to find, but search carefully so that you are not stuck with terms that can slowly strangle your budget.