5000 Loan Today
Nearly everyone can use a financial shot in the arm from time to time, especially if you need a 5000 loan today. The poor economy has forced many to cut back on their expenses and curtail plans for starting a small business, taking that long-awaited vacation or paying off those high interest credit cards. Unfortunately the bad economic climate has led to the belief that small loans of $5,000 or more are unobtainable without perfect credit. A number of lending institutions are out to prove this belief untrue, and there are online companies dedicated to putting consumers seeking personal or business loans in touch with lenders or investors willing to take a chance on the average individual.
Some Examples Of Moderate Risk Lending
Direct Lending Solutions offers borrowers the opportunity to apply online for personal loans of up to $5,000 and more simply by filling out a short form that includes personal identity verification, banking information and the purpose of the loan. This info is matched to lenders interested in financing individuals. Some of the loan packages will require collateral in the form of real estate or other property. Other contracts will require a signature only. Direct Lending Solutions works with a number of financial institutions and is dedicated to finding the perfect loan package for each individual situation.Prosper is a unique lending network that connects borrowers with private investors. The company website details the process of completing a loan listing.
This listing is much like a personal profile and allows investors to decide whether to work with the individual. The borrower’s credit score is checked by Prosper and the borrower is assigned a rating based on his or her credit history, income and purpose of the loan. Several investors can provide the loan and in return receive a portion of the interest that is collected. Loans of up to $5,000 are common with Prosper, and borrowers pay no listing fees and only nominal closing charges. The loan rates for Prosper vary from less than 6.6 percent to over 25 percent depending on the credit score of the individual and the term of the loan.
Zopa is similar to Prosper in that there are no banks involved, the identity of the lenders and borrowers is kept secret and there are flexible repayment plans for every individual. Loans of up to $5,000 are available with loan periods ranging from 36-60 months. This form of P2P lending is becoming quite popular because any credit check performed by Zopa will not affect the borrower’s rating. In a typical loan package set up by Zopa borrowers can expect a small fee once a loan has been made possible by lenders, and the lenders themselves are charged only a one percent annual fee on all of the money they invest. Interest rates may be as low as 7 percent for those with exceptional credit, but those with black marks on their credit history are encouraged to apply. While some applicants’ interest rates and monthly repayments will be higher, these moderate risk borrowers can still expect a number of investors to “fill” the loan package, insuring the full amount requested will be available. Borrowers can visit their site for full details.
What Credit Is Needed For These Loans?
In most cases the lender or loan management company will take the information provided in the online application and put the borrower into a category. These range from AA credit rating to high risk, and the interest rate given for any loan offer will reflect the borrower’s financial standing. Some lenders who extend credit in the amount of $5,000 or less may want some form of collateral. Home ownership is a big advantage, assuming the property is not in foreclosure and there is a history of timely payments on the real estate loan. Other property such as a boat, second car or even jewelry may also be considered as collateral. The P2P programs listed above do not require collateral but do place applicants in a category according to their credit rating and score.
Filling out the application is the easiest part. Regardless of the loan purpose and amount, applicants will only need to provide basic information such as Social Security Number, loan amount requested, some brief description of credit history and if there is any real estate held by the borrower. Most of these online applications take just minutes to complete and lenders provide all pertinent information on their website concerning interest rates, loan periods and repayment options. If you’re diligent about filling out the application, you might even get approved for your 5000 loan today.