There are clearly times in life when the need for fast cash trumps all others. However, people with bad credit seem to be at a direct disadvantage in these situations. Are there $5,000 personal loans for those with bad credit readily available? What choices do bad credit borrowers have in the loan market?
In fact, there are several choices that you have available, even if you have bad credit. Personal loans for $5,000, though more difficult to come by in these instances, are out there if you know where to look. This article will review the choices that exist for borrowers with bad credit.
Choice #1: Student Loans
If you are currently a college or university student, then the best and easiest option for you is to utilize student loan services. If you are not currently taking student loans, there are several government programs such as the Stafford Loan and Perkins Loan programs that will offer you personal loans for $5,000 or more at a low interest rate, regardless of credit. In fact, most government student loans do not even require a credit check to obtain. Even if you are already using government student loans, private companies also offer packages to students that come at lower interest rates and pay less attention to bad credit than traditional personal loan packages.
Choice #2: Ask Family & Friends
Though most people only think of loans as something given by banks, in fact private lending between friends and family members happens every day. If you need a small amount of cash, even up to a $5,000 personal loan, and know of someone with that sort of money, you can approach them. Obviously people who know you will not require a credit check, but they may want to draw up repayment terms. This is a great idea since by doing this you are able to adhere to an agreed repayment schedule (with or without interest) and avoid creating bad blood between you and your new lender.
Choice #3: Online Payday Lenders
The final option available to people with bad credit is the payday loan. Generally, these loans are only given out for short periods of time – 14-60 days. Payday loans carry higher interest rates and fees than regular loans as well. However, payday lenders will not check your credit and can usually approve you for a loan in a matter of minutes and deposit the loan in your account within 24 hours. This fast access to cash is ideal in times of emergency when you know that you will have the money to repay your lender in the short term. Payday loans are generally given out for amount ranging from $100-$1,500. Therefore, if you require a $5,000 personal loan, you will need to combine payday loans from several creditors.
There Are Choices
People who have bad credit feel like the loan industry is off limits to them. However, nothing could be further from the truth. There are clear choices available for personal loans for borrowers with bad credit. You can get a $5,000 personal loan by looking in the right places and combine offers when necessary.