Banks and credit unions are often not willing to lend money to people who do not seem creditworthy. But bad credit personal loans guaranteed approval of up to $5,000 are exactly the opposite: anyone with a low FICO score can apply online and have the guaranteed loan decision with no traditional credit check. All this became possible in exchange for bigger monthly payments stemming from higher interest rates. Despite these factors, online installment allowances may help you out in an emergency if you use them responsibly.
Bad Credit Personal Loans: Pros & Cons
Let’s take a look at some advantages and disadvantages of a $5,000 personal loan bad credit with guaranteed approval. In that sense, the main pros of these allowances revolve around:
- the issue of credit delinquency
- the payment term
- the speed of credit
- the possibility of approval
- the question of property ownership
Despite the above, bad credit loans come with some drawbacks, including the high interest rates, origination fees, and abusive or fraudulent loans from unregulated companies. That’s why we stress the importance of verifying that the entity with which you want to contract a bad credit personal loan with guaranteed approval up to $5,000 is a regulated financial institution: you can do it in the Consumer Financial Protection Bureau.
Who are They For?
To all borrowers who are over 18 years old, have a decent or bad credit score, and need quick money. Unlike payday credits, installment loans provide a more convenient and straightforward repayment plan for borrowers.
Thus, if you need a larger sum of cash to borrow and want to pay it back over a longer period, a bad credit personal loan with guaranteed approval of up to $5,000 may be a suitable option. The latter has a similar APR rate as payday allowances, but can be paid for up to two years rather than in one big sum.
How to Apply?
If you are looking for a medium-term personal credit, you need to explore all possible options. Below, we have listed three sources that can help you out in this situation:
- Online Lenders. The online providers offer the easiest way to qualify for a $5,000 personal loan, with some of the most competitive rates.
- Banks. The financial institutions may be the second easiest option to apply for larger allowances. However, the application procedure and approval process usually take much longer than most online lending websites instant debit card loans online.
- Credit Unions. The ones who offer great interest rates, but can be difficult to qualify for. Most of them require borrowers to have a FICO score higher than 500. Moreover, the application procedure may take up longer than online lenders and banks altogether.
So, from the above, it became clear that an online lender is the best solution to qualify for a $5,000 bad credit personal loan with guaranteed approval.
Online Application Process
It can be a good idea to gather the documents you need to apply for an installment loan beforehand. These may include proof of identity, source of income, financial statements, and your valid Social Security number.
To get this type of loan, you should enter a lending website and fill out an online request form. Some lenders will give you a decision on approval the same or the next business day after applying. So, you are almost guaranteed to find quick money for bad credit without any hassles!
Details of Installment Loans
Finally, it is high time to cover the three most common questions borrowers have when applying for this type of allowance.
How Long will it Take to Receive the Funds?
Some providers offer a same-day decision, meaning you can receive credit money the same day of your approval. Other lenders may take up to 7 business days to receive funds. It is worth investigating their financing time beforehand, because the speed of transactions is critical in an emergency.
What is the Monthly Payment on a $5,000 Loan?
To define your exact monthly payment, you should know the specific T&Cs that come with the loan approval, including an approved rate, loan term, and amount. For example, applying for a $5,000 guaranteed approval bad credit personal loan amount with an APR of 7.0% and 2-year term, you will pay $224/month.
Can I Get a $5,000 Personal Credit if I’m Unemployed?
It may be challenging to get an installment loan this way. Some lenders may not ask you for proof of income. It usually depends on your credit history and FICO. Also, if you are unemployed and can’t prove income, the chances are higher when applying for a short-term credit.