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Small Loans
There are many types of small loans that you can get, you just need to know where to find them. These are usually personal loans or loans for previously owned vehicles. There are various places that you can get small loans, you just have to do some research.
You can look online for small loans that are online or from brick-and-mortar lenders. One place that you might try is https://smålån.net/ and they can help you to find a small one. They can also help to find just the right type of loan for you.
This article will help you to see what types of loans are out there for someone who wants $5,000 or less. It will also help by telling what credit scores are necessary for the small loans. You can do more research to see what other places that you might find.
Where to Get Loans
- Online – you can get loans for under $5,000 online from many different lenders. Some of the more popular lenders can let you borrow money/cash without much trouble if you have a good credit score. The lower your credit score the tougher it is to get any loan.
Achieve – This lender can give you a loan with an interest rate that is 29.99% or lower and will give you up to five years to pay it off. They do have origination fees, but they do not have prepayment penalties. You need a credit score of at least six hundred to qualify for one of their loans.
Avant – Avant can let you borrow for under $5,000 with an interest rate that is 35.99% or lower. You only need a credit score of 580, so you can qualify even if you have bad credit. You can have up to five years to pay it off. They have origination fees, but they give you a discount if you sign up for autopay.
Axos Bank – If you have better credit scores, you can go to Axos Bank. They require a credit score that is at least in the 700’s. You can borrow money with an interest rate of under 15.19% and have up to six years to pay it off. You can look here to see what interest rates for personal loans are today: https://www.bankrate.com/loans/personal-loans/rates/. This site updates the interest rates as needed.
Best Egg – You will need a credit score in the 600’s and above to get a loan for $5,000 or less. The interest rates are 35.99% and below and the payment terms are up to five years. You can use these to consolidate your debts, refinance your credit cards, or whatever other uses that you might have.
Lending Point – You can borrow $2,000 or more from Lending Point with an interest rate of 35.99% or less. You will need a credit score of at least 580, which is a bad credit loan. If you have a higher credit score, your interest rate can be lower. You will have up to six years to pay off your borrowed money that has origination fees.
Prosper – The interest rates here are up to 35.99% and you can borrow $2,000 or more. You will have to pay off your loan in up to five years. They expect you to have a credit score of at least 640.
Banks – You can also go to a bank to get your loan, there are many to choose from. If you have a bank that you already do business with, you could get a discount on your interest rate or other fees. Some larger banks don’t do personal loans, but there are many local banks that will do them.
Wells Fargo – This is a national chain of banks that has many local locations. You can get a loan from them that starts out at $1,000 and goes up from there. If you already have an account with them, they will offer a small discount on your interest rates, that can go up to 35.99%. You will have up to five years to pay off your loan.
U.S. Bank – Another bank that is a national chain, but has local locations. If you have a good credit score, you can get a loan for $5,000 or less with an interest rate at 35.99% or lower. You will have up to five years to pay off your loan.
PNC Bank – This bank gives people with good credit scores of 600 or above loans that can be $5,000 or less. The interest rate is competitive at 35.99% or below and you have six years to pay off the loan.
- Credit Unions – Credit unions are another option for you to secure a loan of under $5,000. They are mostly local and you have to be a member of the credit union before they can loan you money. There is usually a small membership fee that they will charge you. If you already have a working relationship with a credit union, you will probably get a discount on your interest rates. Interest rates can vary and will probably go up to around 35.99%
What to Consider
- Amount of Loan – Many lenders will not loan you under $1,000, but many will go up to $100,000. If you are wanting a small loan of around $5,000, most lenders will be able to help you. If you have a good credit history, you will have a better chance of getting a loan.
- Interest Rates – If you have a good credit score and history, you can have lower interest rates. If you have a relationship with the lender, you could get a discount for your interest rates. Typical interest rates range from around 5% to around 35.99%.
- Repayment Terms – The lower the amount that you want to finance, the lower term you will probably have. Many lenders that will loan you $5,000 will want you to repay the loan within 5 years, sometimes even sooner. Some loans go as long as seven years, but they might have higher interest rates.
- Fees and Total Cost – You will need to talk to the lender to see what other fees might be attached to the loan. Some lenders will ask for origination fees and some charge prepayment penalties if you pay your loan off early.
Personal Loan Alternatives
There are alternatives to personal loans that you need to check out. You might already have credit cards that go up to $5,000 and you could use them to pay for your needs. You will want to make sure that you pay off your balance each month to avoid the higher interest rates.
You could also ask friends or family to loan the money for your needs. If you go this route, make sure that you draw up legal loan papers to protect you and your friend or family member. Look here for a template of paperwork that you could use. You want to make sure that you pay them back as promised so that you do not cause any ill feelings.
Conclusion
There are many options for you to get a loan for under $5,000, including online, in person, and using your credit cards. You could also ask your family and friends for the money, but you want to make sure that you draw up legal papers to protect you both. You will have interest rates that can be as high as 35.99% and have to pay on your loans for up to seven years.
