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$5000 Loan For People With Bad Credit

By Edited Dec 2, 2015 0 2

Any type of loan is going to be more difficult for a person with bad credit to get than someone who has good credit. You should know that the companies willing to lend money to people are going to always have a look at their credit score and credit history before they will ever work out a deal. It is not going to be what you would consider "a breeze" or "easy" if you have a lot of credit problems and are trying to take out a loan. In good economic times, you may not have as much of a hard time in getting a loan for just $5000, but during a recession, you are going to likely find that a lot of lenders are done with giving certain groups of people loans; one of these groups happens to be "people with bad credit."

Does this mean that a person with bad credit will never be able to find a place willing to give out a $5000 loan? No, because there will always be places that will be open to the idea of working something out. You may be required to put up some collateral and if you don't have any kind of collateral, then they may want you to get a cosigner for your loan to make sure that they are going to get their money back. What many people do not know is that the banks make a profit only by getting customers that pay them back on time. It is people that have poor credit who they usually have problems in negotiating with for an offer.

Even though five-grand is not considered to be a lot of money for a loan, it is still significant enough that banks will want to make sure that you are up to date with your payments and are not in deep debt. There are other times when people with bad credit may need to take out a $10000 loan or even $20000 loans in order to get themselves out of a revenue crisis. However, you should really consider yourself lucky if all that you need is $5000 because it is fairly easy for most people to make payment towards.

There are a lot of people in need of a few thousand dollars to help them finish making a payment on something like an auto loan or maybe to help them pay for their mobile phone bill. Whatever you need the loan for, there are plenty of reasons that you should think about not getting it. Unless you can positively tell someone that you need a loan, you probably do not actually need one. Anytime that you can avoid having to take out a loan, you will probably save yourself money. If you can get a $5000 loan with no interest rate for up to a year, then you will be in very good shape. Many times people can get a slightly bigger loan to help pay for a new car or truck that has no interest rate.

If you are going to be paying over a five-percent interest rate on your loan, then it is probably very wise to stay away from getting one. Even with loans as small as a few thousand dollars, you do not want to get yourself into even more of a credit jam. People with bad credit should always be advised to save up their money and not take out loans unless they are able to use one to their advantage. Getting a good interest rate on bad credit loans is not very common, so be very cautious if you ever take one out.



Jul 25, 2009 11:48am
True. You should not borrow to get out of dept, you should always work and pay your bills. But things happen in life, like, you work. God desides you need a baby after 14 years. The type of work you do, your body has to be perfect (not pregnant), the father, well no help at all, & your just really behind in your car payment which you need for the new baby and to drive the 120 miles to work once you get back into shape. Unexpected things happen in life.. This is just one girls story of need, Im sure there is alot more out there. So what do we do? Wish for the lottery? Can't win if you have no money to even play. Not that your chances are any good.
Jul 25, 2009 5:15pm
Very true Miss Dee... Some people borrow to temporarily tide themselves over though (e.g. if they cannot afford to put food on the table) and they know that they have a check that will be coming. But if you can help it, it isn't usually a good idea to borrow money to fix debt!
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