5000 Personal Loans Bad Credit Guaranteed Approval

If you’ve hit a snag in your finances, a large loan can help smooth things over and get you back on track. But how do you go about getting that $5,000 loan if your credit is already bad? While traditional bank loans might not be an option for those with bad credit, there are other ways you can arrange to borrow money.

$5,000 Personal Loans

Your credit score is only one piece of the puzzle when it comes to borrowing money. Lenders also consider your income and other factors. Every lender has its own standards and criteria for lending as well, which means you may qualify for a loan at one lender and not at another.

It’s important to apply for a loan in a few places before committing. This way you are sure to find the most favorable terms and see what you qualify for, since this amount and interest rate can be very different than what is advertised. A 5000 loan with bad credit is possible, although you will probably have to pay higher interest rates than someone with a good to excellent credit score.

$5,000 loans are available from several sources including:

• Traditional banks
• Credit Unions
• Online Lenders
• Peer Lending Sites

Borrowing from Traditional Banks

If you are looking for 5000 personal loans with bad credit and guaranteed approval, traditional banks might not be much of an option. These banks often have the highest lending standards and require the most documentation. If you’ve banked in one place for years and have an excellent history, it’s worth a try. Just be sure you can make timely repayments on the loan or you might risk hurting your reputation at the same place you store your money. Note that it is unlikely to find a lender with guaranteed approval.

Borrowing from Credit Unions

A credit union is a financial institution that isn’t set up for profit, like a bank. Credit unions work with individuals who meet certain criteria and have slightly looser standards for borrowing. If you haven’t been able to qualify with a bank for a new loan, you might have better luck with a credit union.

Borrowing from Online Lenders

An online lender might be the easiest way to borrow $5,000. The application process is typically online and streamlined so that you can apply, get a decision and possibly even have funds within 48 hours. The entire process is done online and because there is no overhead, online loans may be less expensive than those from brick and mortar institutions.

Borrowing from Peer Lending Sites

There are lending clubs online where those with extra cash invest and offer loans for those with less cash. When you repay your loan with interest, the lender makes a profit. There is no bank involved at all, since it’s one individual or company lending money to another through the online platform. Peer Lending sites often consider loan applications that banks and credit unions do not.

Getting a $5,000 Loan with Bad Credit

Once you know where to apply for a loan, you need to know what you’re looking for with your loan.
There are several factors to consider. Assuming that your loan is $5,000, you need to think about the:

• Interest rate on the loan
• Fees that might be taken from the loan
• Repayment period and terms

All these factors contribute to how much you will wind up paying for your loan.

The Interest Rate

The interest rate on your loan is how much it costs to borrow the money. The higher the interest rate, the more you’ll be required to pay every month and the higher the total cost of borrowing the money over time. It’s important to know that the interest rate tends to reflect your credit. If you have bad credit, you will likely have a higher interest rate on the loan.

Loan Fees

Some banks and lenders charge an initial fee when you borrow the money. You might set up a loan for $5,000 for example, but only $4,700 of the money actually makes it to your bank. The other $300 might be taken out immediately as a fee for borrowing. That may mean you need to be borrow more than $5,000 to account for the fee or consider working with a different lender.

Repayment Terms

How long you keep your loan also affects interest rates and payments. If you pay a loan off quickly, perhaps in 24 months, you might have a lower interest rate than if you pay the loan off in 60 months, which creates a higher risk for the lender and comes with a higher interest rate, respectively. Check the repayment terms for any fees that might come with early payment as well. You don’t want to be penalized if you pay the loan off early.

Qualifying for a $5,000 loan may be easier than you think, even with bad credit. Interest rates vary on personal loans, but they are almost always lower than you’d pay with a credit card. Throw in the finite terms of a personal loan and you can be confident that you can borrow the money you need an pay it back in a set amount of time, something that can be very hard to do with a credit card. Just keep in mind that finding a lender with guaranteed approval is a tall order and not likely in most cases.

When you can use $5000 personal loans with bad credit and guaranteed approval you might try Match Financial, which works with many lenders and can probably help you.