When you have a poor credit history, you’re usually not eligible for a loan from a bank or a traditional credit lender. However, there are other loan options available to you, even if you have bad credit. To get a loan with bad credit, you’ll need to show that you can repay the loan by providing evidence of a steady income.
How do I apply for a $5,000 loan online?
Follow these 6 steps to apply for a $5,000 loan:
Compare lenders. Compare loan amounts, rates, terms and eligibility requirements to find an option you can afford and qualify for.
Fill out the application. Go to the lender’s website and complete the application. Want to use a lender from our table? Click the Go to Site button to get started.
Review and submit. Double-check your application for mistakes before submitting it.
Upload required documents. Typically, lenders ask to see proof of income, bank statements and a valid photo ID when you apply for a $5,000 loan.
Sign and submit your agreement. Carefully read your loan’s terms and conditions before signing anything.
Get your funds. Most lenders offering this amount can send it to your bank account as soon as 1 business day.
Compare $5,000 personal loans
3 tips to get approved for a loan with bad credit
There’s no one surefire way to ensure you’re approved for a loan, though the following may be able to help:
Check the eligibility criteria before applying. Most lenders have specific requirements you need to meet in order to qualify. If you’re not sure you’re eligible, call the lender’s customer service team to discuss your situation.
Compare options before applying. Every application you submit shows up on your credit report and lowers your score. To avoid this, compare lenders before applying to find the best fit for your needs.
Options for a $5,000 loan with a good credit rating
If you have good credit score (usually a minimum score of 650 or higher) you could be eligible for a loan from a bank, credit union or a standalone lender at a more competitive interest rate than you’d get from providers who lend to people with bad credit. You may be able to borrow up to a limit of $10,000 without providing collateral such as your car or house.
Type of Lender
Typical Interest Rate
Estimated Turnaround Time
Pre-approval decision in 1-3 business days Funding within 7 business days
Bad Credit Online Loan
Pre-approval decision same day Funding within 1-3 business days
Peer-to-Peer Personal Loan
Pre-approval decision same day Funding within 7 business days
What to consider when comparing $5,000 loans
Weigh these factors before applying for an installment loan.
Online application. Most installment loan providers offer convenient online applications that take just minutes to fill out.
Bad credit OK. Many installment loan providers are willing to work with borrowers of all credit types.
Repayments line up with payday. You’ll generally have your repayments lined up to when you get paid, and some lenders will give you the option of how to make repayments.
High cost. Due to the risk to the lender, you’ll usually face high fees that equate to APRs in the triple digits, making repayments difficult to afford.
Disreputable lenders. It’s common to find disreputable lenders operating online who prey on people with bad credit, so make sure you check reviews before applying.
Overdrawing your account. While direct debit loans can be positive, it can prove costly if your account becomes overdrawn by your lender automatically withdrawing owed funds.
Things to avoid with bad credit unsecured loans
There are several risks associated with bad credit loans that don’t require collateral. Here are some things you should avoid:
Not being cautious. Taking out a bad credit personal loan can come with high fees and inflexible terms.
Not considering the affordability. Make sure you check twice before applying for a bad credit unsecured personal loan up to $5,000. The repayment period is much shorter than standard loans, meaning your repayments can be quite high each week, month or every two weeks, depending on your repayment plan. Lenders usually offer calculators to show an indication of your repayments.
Not considering the fees as well as the interest rate. Lenders may charge you an interest rate as well as fees and other charges. Check all fees before you apply and consider the total cost of the loan.
Frequently asked questions
This will differ between lenders, but you will usually receive a notification as to whether you have been approved or not for the loan, via email or telephone, along with further instructions for the next steps.
When you apply for an online loan up to $5,000, your details are securely transmitted over an encrypted connection. The majority of sites you might apply to use 128-bit or 256-bit SSL encryption to ensure your details are safe and secure.
When institutions lends you money, they want to be certain that you can repay back the debt within the allocated timeframe. If you’re unemployed, your income may be limited unless you’re receiving benefits. If the majority of your income comes from welfare payments or government benefits, you may still be eligible for a personal loan – but be sure to check with the lender. Read our guide on loan options for welfare recipients for more information.
This depends on the individual lender. When reviewing your loan contract, be sure to voice this question as some personal loan lenders charge extra fees for early repayment.
Funds are usually deposited into your bank account on the next business day, but it may take longer for larger amounts. It ultimately depends on the lender and your bank.
While not all lenders report to the credit bureaux that handle your credit score, some might choose to report late or missing payments. This is at the discretion of the lender.
The best solution is to contact your loan provider and inform them. Usually, the lender will be willing to extend the payment deadline and find ways to help you through difficult financial times. Keep an open line of communication between yourself and the lender as much as possible.
Aliyyah Camp is a writer and personal finance blogger who helps readers compare personal, student, car and business loans. Aliyyah earned a BA in communication from the University of Pennsylvania and is based in New York, where she enjoys movies and running outdoors.
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