You can get a $5,000 personal loan with bad credit

Suddenly in need of some major repairs on your car? Maybe you have a student in college and need some tuition money for the next school term. Maybe your hot water heater blew and now your basement is flooded. All sorts of things can put people in a cash flow bind. And because of this tumultuous economy, many people have exhausted their emergency funds or taken some bad hits to their credit records. If you need a loan of up to $5,000 and you have bad credit, you may want to consider getting a bad credit personal loan.

Check with your bank or credit union

Many banks and credit unions have really beefed up their qualifications to issue just about any type of loan. If you have bad credit, most traditional lenders will not welcome you. But keep in mind that credit unions and smaller banks may be willing to make personal loans to people who have held accounts with them for some time, despite a poor credit rating. If you have retirement accounts or investment accounts at the bank or credit union, that could also work on your behalf. No matter what your circumstance, check with your bank or credit union because they may be able to offer you the best interest rates.

peer-to-peer loans

You can also go online and check out peer lending organizations. These consist of a number of people who have money to lend and the websites invite borrowers to advertise the financing. You build your own ad consisting of all your good faith and the amount you need and what you can pay monthly. Depending on you and your background, you may very well find private investors who are willing to take the risk despite your poor credit reports. You’ll probably find interest rates on a better scale than most commercial lenders. And since this is done through a third party with rules and statutes, there is protection for both the lender and the borrower. Prosper is a peer to peer lender.

Online lenders fill the gap

With so many people having bad credit and so many traditional lenders not lending, private companies, recognizing a growing market, have stepped in to fill the void. You can find these lenders online, and since the competition is so fierce, you’ll be able to pick and choose to find the best interest rates and payment terms. As with any online transaction, you’ll want to make sure the website you visit is secure and the lender is reputable. You can check out lenders through the Better Business Bureau’s online listings, where you’ll find each rated business, and you’ll often see customer reviews as well.

Payday loans and cash advance

If nothing seems to be working and you can’t seem to get a $5,000 loan, and if the need is dire, you can approach payday or cash advance lenders. They often end up with amounts up to $1,500. Although not recommended, you could put three or four of those loans together to get the big sum you really need. The reason this is not recommended is that these loans have quick repayment terms and you may very well have to pay back $5,000 plus interest within two to four weeks.

Options for personal loans with bad credit of $5,000

With all of these options and depending on the degree of need, you should be able to find a bad credit personal loan of up to $5,000 or more. Its synonym will be persistence. Also, by taking out such a loan and carrying it out according to the terms of your contract, you will improve your credit scores.