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.