I need a $5000 loan. I have a bad credit history. Is there anyway I can get it?

Tuesday, 01 September 2009 21:27

Q. I have tried iGrin but did not work. I do not have any assets to apply for a secure loan. Getting this money is very important for me.

A. Like most things in our lives, debt can be good or bad. It is good when it's used to capitalize on it, such as borrowing to buy a house and build home equity, or taking a student loan to obtain better education. Debt can be bad when it's use undermines financial stability of the borrower himself, such as boosting debt expenditure to sky-high levels, so that the person now has an eternity to pay off that debt.

I am afraid with no substantial assets and a poor credit history your chances of getting a loan from a bank of credit union are exactly zero. The only offers you are going to have are those from predators, who won't help you to capitalize on the loan, but are seeking to capitalize on your troubles. They are monsters you don't want to deal with, no matter what your situation, and no matter how sweet they sound.

Try your family and your friends. $5,000 is a lot of money, but if you are honest with yourself, and if you have a solid plan how you will use that money and how you will repay it, they might lend you. If $5,000 is too much for them to lend, split it in parts, and ask several people. You can also split the $5,000 in tranches with the same person. For example, "you get some $2,000, and you will get an additional $4,000, when you repay $1,000 back. These are terms, that banks won't consider, but your relatives and friends might want to talk about it.

Use the FREE FINANCIAL ANALYZER on this website to work out your situation.

The banks have already tried to lend money to people with poor credit history. That's what the subprime mortgages were about, and that's why this whole crisis today. It simply didn't work. Neither for the banks, nor for the borrower.

Good luck!

Moni.