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3 Options to Access a 5000 Dollar Personal Loan

Friday, October 4th, 2013

Applying for a loan in today’s economic climate is complicated enough as it is, but when you’re also dealing with a more or less serious case of bad credit scores, it can turn into a downright impossible effort. Luckily, the advent of online platforms and other shifts in the mechanisms of the personal financing system have brought on several options to access a 5000 dollar personal loan. Yes, even if you’ve got a bad credit history.

Where traditional lenders fear to tread, i.e. in the realm of borrowers with poor credit scores, more dynamic and updated lending institutions saw the opportunity for profit. Thus a system for quick persona loans has emerged, which allows borrowers to sidestep the traditional lenders and their often complex application processes. The principle behind the existence of loans for bad credit borrowers is that they represent an increasing market segment. Their need to secure their household budget and bring it back on track is urgent, yet established banks subject them to an application process which is strict, exhausting, and sometimes even lacks transparency. As such, it often looks like bad credit borrowers who want to access a 5000 dollar personal loan are stuck in a downward spiral of debt, with little chances to extricate themselves from the situation. It must be said that potential borrowers with a poor credit history stand little chance at accessing major loans; for small amounts such as $5,000 in cash, however, they do have several options at their disposal.

Payday loans

Payday loans are a controversial alternative – and not without just cause. Sure, they may be quick and accessible to just about anyone, since applying for them does not involve a credit check. However, as anyone who has ever failed to repay them on time and in full knows, personal payday loans are a highly risky endeavor. That’s because a failure to repay one’s debt will result in enormous expenses, which far surpass normal APRs. On the upside – yes, payday loans are available to anyone who wants to access a 5000 dollar personal loan and has a job. Our advice is to avoid this solution, save for the scenario in which you have a bad credit score and are in dire need of some urgent cash. You can apply for such a loan within minutes, have the loan almost instantly approved and it often only takes a couple of hours for the money to reach your bank account via direct transfer. On the downside, the interest rates on such loans can reach up to 30 per cent. Additionally, you will often only get 30 days to repay the loan. Last but not least, $5,000 may be too high an amount to ask for via payday loans.

Apply for a 5000 dollar personal loan online

Online lenders are specialized in bad credit borrowers. You can access a 5000 dollar personal loan just as easily as for a payday loan – all it takes is filling out an online form which asks for some personal details. Once the application is verified, the money is quickly transferred into your account. Aside from the interest rates, which are usually on a par with those applied by traditional lenders, online loans allow for a larger window of repayment. By keeping your repayments at a bare minimum, but on time, you can make sure your loan is affordable. Approval depends on the applicant’s ability to repay the loan via a steady source of income.

Online bidding

This may strike many as a more unorthodox method to access a 5000 dollar personal loan. The mechanism involves having the prospective borrower bid on a site dedicated to online bidding for personal loans. The lender then selects the most appealing option from the bids at their disposal, depending on the interest rate offered and the repayment time offered by the borrower. Bad credit is also not an issue here, as the lender stands to make money out of the interest they claim.