Do you suddenly need some major repairs on your car? Perhaps you have a student in college and need to come up with some cash for tuition for the school term coming up. Maybe the water heater blew and now your basement is flooded. All kinds of things can put people in a cash flow bind. And because of this tumultuous economy, many folks have depleted their emergency funds or have taken some bad hits on their credit records. If you are in need of a loan of up to $5,000 and you have bad credit, you might want to consider taking out a bad credit personal loan.
Check With Your Bank or Credit Union
Many banks and credit unions have really tightened their qualifications for issuing almost any type of loan. If you have bad credit, most traditional lenders will not be throwing out the welcome mat for you. But, consider that credit unions and smaller banks may be willing to do personal loans for folks who have been account holders with them for some time, in spite of a bad credit rating. If you have retirement accounts or investment accounts with the bank or credit union, that could work on your behalf as well. No matter what your circumstance might be, check with your bank or credit union because they will be able to give you the best interest rates.
You could also go online and check out peer-to-peer lending organizations. These consist of a number of folks who have money to lend and the websites invite borrowers to advertise for financing. You construct your own ad that consists of all your bona fides and the amount you need and what you can afford to pay on a monthly basis. Depending on you and your background, you could very well find private investors who are willing to take a chance on your despite any bad credit reports you have. You will probably find interest rates on a better scale than most commercial lenders. And since this is done through a third party with rules and bylaws, there is protection for both lender and borrower. Prosper is one peer-to-peer lender.
Online Lenders Fill the Gap
Since so many folks have bad credit, and so many traditional lenders are not lending, private companies, recognizing a growing market, have stepped up to fill the gap. You can find these lenders online and since competition is so fierce you will be able to pick and choose to find the best interest rates and repayment terms. As with any online transactions, you will want to ensure the website you visit is secure and that the lender is reputable. You can check on lenders through the online Better Business Bureau listings where you will find each company graded and usually see customer feedback as well.
Pay Day and Cash Advance Loans
If nothing seems to be working out and you just cannot seem to land a $5,000 loan - and if the need is piercing - you could approach payday or cash advance lenders. They often lend amounts up to $1500. Though it is not recommended, you could piece together three or four such loans to get the large sum you really need. The reason this is not recommended is that these loans have quick payback or turnaround times and you could very well be required to pay back $5,000 plus interest within two to four weeks.
Options for $5,000 Bad Credit Personal Loans
With all 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. Your byword will be persistence. Also, by taking such a loan and seeing it through according to the terms of your contract, you will be improving your credit scores.