Qualifying for a $5000 Loan

Posted on 30 October 2010


Qualifying for a $5000 loan can be hard if your credit score is low enough to be ashamed of. Many people are going through the same situation. Getting a loan isn’t that hard since there are a lot of options that you have. However, getting one that doesn’t have an interest rate that will make your cringe is another story. In order to put yourself in a situation where getting a good rate of interest is just a matter of applying for a loan, you will need to get working on your credit in order to raise it right away.

When it comes to money, lenders are very careful. They know the statistics about how many months people who default on loans will pay before that happens. They will look at your credit score and determine whether or not they should give you that $5000 personal loan and if they should, what interest rate they will give you. Having a low credit score could cost you thousands of dollars over the life of the loan. Even if you only take out a mere $5k, with a high enough interest rate, you could be spending the next couple of decades paying that off and end up paying way more than what you originally borrowed. This is why having a good score is so important. It can save you a ton of money.

Taking out a loan means you will go deeper into debt. This can be okay for certain things like buying a home or starting a business that you have a solid plan for. However, if your reason is to simply pay off some existing debt, you might end up worse off than when you started. Just because you need the money, it doesn’t mean that getting a loan is the best option. You can take up a second job or borrow from people you know instead.

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