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Get a $5,000 Bad Credit Personal Loans (Guaranteed Approval)
It may seem tricky to get a personal loan with a bad credit score. But don’t worry; we are here to explain how you can still borrow $5,000 or more, even if your credit score isn’t perfect.
Remember, an easy pre-approval isn’t a guaranteed promise. However, it’s a standard feature for the unsecured loans we’ll discuss here. If you’re hoping to borrow a large sum, it may likely come from one of these providers.
Best $5,000 Personal Loans for Bad Credit With Nearly Guaranteed Approval
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees up to 12%
- $15 late fee
- $15 NSF fee
- Quick access to loan funds
- No prepayment penalties
- Flexible monthly payments
- Soft credit check when prequalifying
- Flexible loan amounts
- Origination fees up to 12%
- High maximum annual percentage rate
- Co-signers aren’t allowed
- Hard credit checks for final approval
- Limited repayment loan terms
One business day (same-day funding available)
Poor credit borrowers who can’t qualify for traditional personal loans
Upstart is a financial platform that enables borrowers with low credit to get personal loans with flexible payback options. Its key advantage is same-day funding.
Upstart does not do hard credit checks when you prequalify. In addition, customers can apply in the morning and receive their personal loan by the end of the day.
- Quick funding (same-day deposit available)
- Available to borrowers with poor credit
- Soft credit checks when viewing your rate
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Have fair credit (at least 660)
- Provide an active email address and phone number
- Late fee of $39
- Long repayment periods
- Three options for repayment help
- High level of customer satisfaction
- No origination fees
- Free FICO score monitoring tools
- Competitive interest rates
- Charges a $39 penalty for late payments
- Strict eligibility requirements
- No co-borrower permitted
One business day (same-day funding available)
Borrowers with fair credit scores who want to consolidate debt, renovate home, or make big purchases.
Discover is more than just a digital bank known for credit cards. It’s also a loan service provider. It gives out fixed-rate personal loans up to $40,000 to people nationwide. The company offers flexible repayment terms and reasonable interest rates to borrowers with fair to good credit.
Discover has some of the best rates in the industry. Plus, they charge no origination fees or prepayment penalties. This means that the overall cost of borrowing is less. If you are in a rush, Discover can transfer funds to you on the next business day.
- Zero origination fees
- No prepayment penalties
- Loan funds in one business day
- Be a U.S. permanent resident
- Live in a qualifying area
- Be at least 18 years old
- Have a valid email address
- Have a valid personal checking account
- Provide income confirmation
- Origination fees: 1% to 5%, depending on your state
- Cash advance fees: 10%
- Late payment fees: vary by state
- Non-sufficient funds fees: None
- Next-day funding
- No application fees or prepayment penalties
- Bad credit is accepted
- Flexible repayment terms
- Convenient minimum loan amounts
- Very high APRs
- Low loan maximums
- Origination and late payments fees may be charged
- Not available in all states
Next business day
Borrowers with bad credit in need of fast cash
NetCredit helps bad credit borrowers qualify for personal loans and credit cards. Despite fast approval and funding, APRs and fees are high. Additionally, NetCredit is unavailable in 14 states.
NetCredit offers cheaper alternatives to regular personal loans and provides bad credit individuals with more flexibility. Additionally, it has fast funding times and allows borrowers to improve their credit.
- The ability to change the due date;
- Refinancing with the same lender in some states;
- Credit-building opportunities.
- At least 18 years also
- Permanent US resident
- Income confirmation
- Valid bank account or debit card.
- Origination fees: 1% to 10%, or $25 to $500, depending on the state
- Late payment fees: $5 to $30, or 1.5% to 15% of your loan amount
- Non-sufficient funds fees: $10 to $50 per payment returned
- Joint and secured loans are available
- Wide range of loan options for low credit
- Pre-qualifying doesn’t affect your credit score
- Convenient options for debt consolidation
- Relatively high interest rates
- Charges origination fees
- APRs are not disclosed when pre-qualify
- Not available in all states
Within one business day of approval via a direct deposit. Funding within several hours may be offered if you receive the funds on your debit card.
Borrowers with credit issues who want to avoid predatory lenders.
OneMain Financial is a reliable financial service that offers personal loans between $1,500 and $20,000 without minimum credit score requirements. With its joint applications, flexible repayment terms, and soft credit checks for pre-qualifying, it can suit borrowers with bad credit. Interest rates are usually high, though.
The company offers a wide range of secured, unsecured, and joint loan options with flexible repayment terms. Its personal loans are available to underbanked borrowers.
- Direct payment to creditors for debt consolidation
- Loan cancellation within 7 days
- Fast funding
- Be at least 18 years old
- Prove your US citizenship or permanent residence
- Provide your bank account information
- Show your monthly income by providing pay stubs, tax forms, or bank statements
- Provide an active email address and phone number
- Origination fees, prepayment penalties, or other fees may be applicable
- Prequalification for multiple personal loans on one platforms
- Low minimum interest rates
- Fast funding (same-day direct deposit may be available)
- High maximum interest rates
- Extra fees may be applied
- The company’s partners may perform a hard credit check
- Data privacy concerns
One business day (same-day funding available)
Borrowers with bad credit scores who want to consolidate debt or cover other significant expenses.
LendingTree serves as a handy platform for seeking personal loans. It allows borrowers to explore a variety of loan offers in one place. Many lenders that partner with LendingTree can provide loans swiftly. However, borrowers with bad credit scores typically get high interest rates.
LendingTree has accreditation from the Better Business Bureau, a non-profit group dedicated to customer safety and trust. The BBB rates LendingTree as A+, a symbol of excellence. The BBB’s decisions are based on how a company reacts to customer gripes, truth in marketing, and openness about company procedures.
- The ability to compare multiple loan offers in one place
- Loan funds in one business day
How Do Guaranteed Approval $5,000 Bad Credit Loans Work?
$5,000 loans for bad credit are options with high approval rates designed for people with less-than-perfect credit scores.
The “guaranteed approval” aspect implies that lenders do not review your credit report. They focus more on your current financial state and your capacity to pay back the loan.
$5,000 loans typically don’t require collateral like cars or homes. However, lenders take on ezra risks when working with bad credit borrowers. This means that interest rates on such loans can be higher than those on traditional options.
The application process is relatively simple. You submit basic personal and financial details, and the lending company determines if they can approve you. This process is faster compared to traditional loans since it only involves a soft credit check.
Before accepting a loan offer, make sure you read the terms and conditions. Review the repayment terms, interest rates, and any extra charges involved. Remember, borrowing wisely and managing repayments effectively is important for your financial future.
How to Apply for a $5,000 Bad Credit Loan?
Securing a bad credit loan of $5,000 might seem challenging, but it’s possible. Here’s a simple guide for you:
- Review your credit score. First, see where you stand. This will give you an idea of what option you can qualify for.
- Compare lenders. Find loan providers that deal with bad credit borrowers. Consider online lenders, credit unions, or peer-to-peer platforms, as they may be more accommodating.
- Prepare necessary documents. Get your financial records ready – your ID, proof of earnings, job details, and proof of address are typically required.
- Consider secured loans. If you can, think about a secured loan. This might improve your chances of getting approved and help you qualify for a lower interest rate.
- Evaluate APRs. Compare interest rates among various lenders. Don’t rush; find one that fits your budget.
- Pre-qualify. Some lenders let you pre-qualify without impacting your credit score. It gives you a hint of your chance to get the loan and shows the potential terms.
- Apply online. Many lenders have online applications. Complete the required forms and provide copies of your documents.
- Get the loan funds. If approved, review the final terms and e-sign a loan agreement. The money will be deposited to you within 1 to 5 business days.
How Can I Use a $5,000 Loan?
A $5,000 loan can be used for a wide range of personal needs. They are almost an ideal option for financing big purchases or long-term projects. Here are some reasons why people take them out:
How Much Will a Personal Loan of $5,000 Cost?
Borrowing money comes with interest and fees. Your loan cost depends on various factors: loan sum, repayment period, interest rates, and credit score. Most personal loans have a fixed rate that doesn’t fluctuate over the loan life. They typically range between 5.99% and 35.99% for borrowers with fair to good credit. However, bad credit borrowers may face APRs of up to 200%.
Let’s take a look at an example. A $5,000 loan for five years with a 27% APR comes with a $152.68 monthly payment. The total loan cost will be $9,160.60. It includes $4,160.60 in interest.
Here’s a table that demonstrates how the cost of a 36-month loan may vary based on average APRs for each credit score range:
| Credit Score | Average APR | Monthly Payment | Total Cost |
|---|---|---|---|
| Poor (300-639) | 32.06% | $217.94 | $7,845.79 |
| Fair (640-679) | 28.13% | $207.17 | $7,458.09 |
| Good (680-719) | 21.69% | $190.15 | $6,845.45 |
| Excellent (720-850) | 16.50% | $177.02 | $6,372.79 |
Before taking out a $5,000 loan, assess your potential APR, choose a convenient repayment period, and calculate its cost and monthly payments. Use our personal loan calculator to better understand whether you can afford this potential debt.
Loan calculator
ESTIMATED MONTHLY PAYMENT
TOTAL LOAN AMOUNT PAID
TOTAL INTEREST PAID
TOTAL COST OF LOAN
When Will I Get Approved for a $5,000 Loan?
The approval time for a $5,000 loan depends on various factors, like the type of loan, your credit history, and the lender’s processes. If you applied for a personal loan from a regular bank, it may take a little longer because they perform a hard credit check that takes more time to complete. Online lenders can be faster with their choices. Sometimes, they say yes within just a few minutes.
What Are the Alternatives to Borrow $5,000 Quickly?
If regular loans don’t work for you, there are other ways to get $5,000. Let’s look at the unique options you can choose:
Cash Out Auto Refinance Loans
Cash out refinance loans allow you to replace your current auto loan with a new one and get extra funds in cash on hand.
The amount you can get is determined by how much equity you own in your car. It’s calculated as the car’s value minus what you owe on it.
Auto Title Loans
Vehicle title loans are secured loans. It means you pledge your car’s title as security. They are generally short-term and allow you to get up to 50% of your car’s price.
Here’s how it works: you get a vehicle title loan and give your car’s title to the lender, but you can continue driving your vehicle. Remember, the interest rate for these loans is often high. If you can’t pay the loan back within 30 days, the lender can repossess your car.
Home Equity Lines of Credit
A HELOC lets you tap into the equity you own in your home whenever you need extra cash.
It comes in the form of a revolving credit line secured by your home. You can borrow money up to a specific limit and only pay interest on what you use. It’s like having a safety net for unexpected expenses or big projects like home renovations.
Pawn Shop Loans
Pawn shop loans can help when you need quick cash with no application procedures and soft credit checks. They allow you to borrow money against something valuable like a phone or game console. Then a pawn shop gives you a portion of its worth in cash. If you repay the loan plus fees within 30 to 60 days, you get your item back. Otherwise, your assets might be sold.
401K Loans
Your 401(k) is a retirement savings plan that you borrow money from. It’s like giving yourself a loan, which sounds pretty cool, but there are some things to be aware of.
You can only borrow up to 50% of what you have in your account or $50,000, whichever is less.Also, you have to pay interest on a 401(k) loan. The good news is, you pay the interest to yourself. The interest goes back into your 401(k) bank account. So, strangely, you earn interest on the loan you took from your 401(k). Just note that you may face tax consequences if you fail to repay your loan for some reason.
Loans from Friends and Family
Loans from friends and family are basically what they sound like – borrowing money from your loved ones instead of a traditional financial institution.
These loans are often more informal and may not involve any paperwork and interest rates. The terms are limited only by your verbal agreement. The key is communication. Be clear about expectations to avoid any awkward money-related tension during Sunday dinner.
Where Can I Get a $5,000 Personal Loan?
Here are some places where you can ask for a $5,000 personal loan:
- Traditional Banks. First, check out the options offered by your bank. Make an appointment to talk about your money and possible loans. Banks often offer some good deals for loyal customers in good standing or clients with good credit.
- Online Lenders. There are many websites that offer personal loans online. Places like SoFi, LendingTree, or Upstart make applying for an unsecured loan easy. Remember that interest rates and conditions may differ, and it’s essential to look at each lender’s rules.
- Peer-to-Peer Lending. Platforms like Prosper and LendingClub connect borrowers directly with individual investors. Peer-to-peer lending can offer competitive interest rates, but your poor credit score and financial profile might still play a significant role in the approval process.
- Credit Unions. Credit unions may offer better terms than bigger banks. Explore options offered by credit unions near you for more personal loan choices. Just note that you need to be a CU’s member to qualify.
Pros and Cons of $5,000 Loans
Loans for $5,000 come with both advantages and drawbacks you need to know to make informed decisions.
Pros
- Long repayment periods. You can choose a convenient loan term to make your monthly payments fit your budget.
- Reasonable APRs. Borrowers with good credit can get low interest rates, which will result in less overpayment.
- No collateral. You can get a loan without providing any extra repayment guarantee and risking your property.
- Fixed monthly installments. $5,000 loans are predictable. You will always know how much you need to pay, making it easier to budget.
Cons
- Long repayment periods. Extra fees may apply.
- Extra fees may apply. Lenders may charge you costs for processing your loan, late payments, non-sufficient funds, and early loan repayment.
- Higher APRs for bad credit borrowers. People with less-than-perfect scores are likely to get less favorable loan terms, which results in more overpayment.
- Potential credit score damage. If you fail to make your payments on time, your credit score may drop, making it difficult to get loans at good terms in the future.
Why Choose Us
BadCredify is a trusted platform that allows you to access offers from multiple lenders in one place. With our help, you can fill out just one simple form and get personalized loan offers from several reliable loan providers. We make it easy to compare their terms and rates and choose the best option for your current situation.
While choosing and comparing lenders, BadCredify reviews offers from 40+ lenders. We pay special attention to customer reviews, interest rates and fees, repayment terms, funding times, and eligibility criteria. Our team of experts also pre-qualifies via the platforms reviewed to make sure the process is convenient and safe. We contact lenders’ representatives and cross-check the information on their websites to make sure loan terms are clearly outlined.
After we gather and fact-check information, we choose 5 best offers for a certain loan category based on the reviewed parameters.
Frequently Asked Questions
What if my loan is denied?
Ask the lender for more info. A slight misunderstanding or inaccuracies might be the cause. Fix that and try again. You can also consider alternative options like secured loans or co-signed loans to increase your approval chances.
What’s considered sufficient income for a personal loan?
Each money lender has specific requirements. Generally, to receive a loan with poor credit, you should earn at least $1,200 monthly. The exact income amount depends on the required loan sum, the repayment period, and your credit score.
How does a loan help improve bad credit?
Borrowing money can lift your credit score when you manage your payments according to the repayment schedule. Paying on time proves your reliability to lenders. Moreover, having various credit types in your credit report is beneficial.
How long does it take to get approved for a $5,000 loan?
Usually, it takes up to one hour to receive approval for a $5,000 loan. Lenders need time to review your loan application form and check your financial situation.
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