How to Get a $5000 Loan from a Reputable Bank
Generally a $5000 loan is out of the range of payday lenders. Their max is usually a $1000 loan. repayable in 30 days or less. Which is fine, because it would cost over $1000 to get a $5000 loan from this type of institution, and you would have to repay it quickly. By far the best option for a $5000 loan is to get one from an established bank. However, the recession has hit many banks hard, and the criteria for obtaining a personal loan has increased in stringency.
1) Credit Score: This is probably the single most important thing that your banker will look at. If you have a score below 600-620 you may be out of luck. Therefore, it is a good idea to run your score (there are several sites that do this online for free) and make sure there is nothing on there that shouldn t be there before going to a financial institution. If you find a discrepancy (a loan you didn t take out, for example) be sure to research it and dispute it immediately.
2) Other Debts: The lender will look at all your other debts to ensure that your percentage of debt in relation to your income isn t too high and that you will be able to repay the loan.
3) Employment: If you are unemployed, you will not receive a loan. If you are self-employed, you need to show at least two years of earnings before they will consider lending to you.
4) Collateral: Lastly, for a personal bank loan, financial institutions require some sort of guarantee in case you do not repay the loan on time and in full. Almost anything can be used as collateral as long as it is valuable to the bank. For example, a car, an antique, an expensive painting, etc.
If you don t meet some of the above criteria and desperately need a $5000 personal loan, your last option is to find someone who is willing to cosign for you. Obviously the co-signer must meet all of the criteria.
This entry was posted on Monday, April 4th, 2011 at 8:02 PM and is filed under Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.
5 Responses to How to Get a $5000 Loan from a Reputable Bank
Calculate Credit Card Payoff Says:
Managing credit debt is becoming a tremendous issue for people. I think this is caused by the lack of proper financial management teaching. Sure, people can file for bankruptcy, but the responsibility really falls on the person mis-managing their credit. To alleviate the lack of proper money management education I decided to create a few credit card calculators, like a credit card adb calculator. Please take a look. Please drop by my site when you have the chance and let me know your opinion! Great article by the way!
Formation savannah Says:
Many banks want collateral from anyone that borrows money from them. Anything that may be of value can be used as collateral. Cars, antiques, are just a few things that can be used in this manner. This provides the bank with a bit of security that you will pay them back. Nice information provide here.
Great article. I think nowadays getting loan is becoming more and more difficult. Last month I had applied for personal loan. The bank wanted many details which I duly furnished. But after verifying everything, they did not give me the loan. I do not know what is the problem. After reading this article, I have some clarity now about what matters and what not.
Davis Sara Says:
I do not have a great knowledge of finance and banking transactions.I found this post very informative and guiding me in the right direction. I also appreciate a loophole you mentioned in the last to get a co-signer who meets all the requirements in case you fail.
Martinez Brianna Says:
I just finished college and started working recently. Due to some personal issues I required a loan. But I was blank about the requirements, so I was browsing for information. I found this blog to be very informative. Thanks.
Leave a Reply
Mail (will not be published) (required)