When the economy started to tumble a few years ago, many people fell behind on bills and are now suffering with bad credit. Because of this problem, they cannot acquire a personal loan which would really help them to make ends meet and get back on track. However, getting up to $5,000 with bad credit is still possible if you know where to look and what to look for in a loan.
Background: Bad Credit
Personal loans for $5,000, like any loan are generally given to individuals based on a couple of factors: credit score and income. Basically you need to have both be sufficiently high to get the best deal. However, what is a high credit score? What is a low credit score? The truth is many people simply do not know.
Your FICO credit score is calculated based on many different factors and will be expressed as a three digit number that falls between 300 and 800. Those with the best credit scores are 720 and higher. Those with the worst credit scores (i.e. "bad credit") are 650 and lower. Anyone else is in between.
Obviously, the higher your score the better, but there is still hope for those whose scores are below 650 to find $5,000 personal loans from select lenders.
Moving on: Finding a Lender with Bad Credit
Personal loans for $5,000 are given every day by both traditional banks and private lenders. Due to your poor credit score, acquiring a personal loan from your local bank may not be possible. However, you should still talk to them. Maybe the lender at your bank can help you with credit counseling or even offer tips for you to improve your credit score over time.
If you absolutely need a personal loan soon, then you should consider using the services of online private lenders. Generally, the limits in terms of bad credit accepted by these companies are much more lax since they specialize in making loans to those in similar situations.
Online lenders can often create a loan package unique to you and your personal needs. Getting a personal loan of $5,000 is one thing, paying it back is another. Therefore, working with lenders who know the particular struggles of those with poor credit can go a long way in ensuring your success.
Get a Good Deal: Comparison Shopping with Bad Credit
Personal loans for $5,000 are actually pretty commonly offered by online lenders. However, that does not mean you should accept the first deal that comes your way. Instead it is important to make sure you shop around and receive quotes from more than one lender. This way you will make sure that the terms, conditions, interest rates and fees are the best possible for you. You may also be able to bargain with lenders if you have more than one quote.
Personal Loans for $5,000 with Bad Credit
Clearly, getting a $5,000 personal loan with bad credit is possible in this tough economy. By understanding where you stand and who you should talk to, getting this help can be achieved with ease. Consider these tips as you begin your loan search and keep a positive attitude.