Urgently need to get $6k? Don’t panic! There are several options to turn to that would not rob you blind. Read on and make notes to get approved for a $6000 with bad credit.
Need to fix a car? Planning a huge party? Urgently need to fix a couple of teeth? All these needs do not cost an arm and a leg, yet not everyone may have $6k on the bank account. If you are one of them, then there are several options to find the money urgently. Of course, talking to your friends and family is a possible way out, but in most cases, you will not be able to borrow such a large sum fast enough. And in such situations, there is a great option – a $6000 loan. Read about the pitfalls of the process, the red flags to stay away from, and the tricks that will help you get a fair deal.
What options do I have if I need to borrow $6000 dollars?
$6000 loan offers a solid sum that would not pose any problems for the perfect credit score owners, but which can become a challenge for people with bad credit. Here are several most popular variants to opt for with a bad credit score.
- Personal loan. Personal loans can be secured and unsecured. Secured loans imply that you have something to put as guarantee (collateral) to the lender. This means that even if you do not repay the loan, the lender can take the collateral and anyway receive their money back. Unsecured personal loans do not have any physical guarantee, and for this reason, their conditions are less favourable than of the secured loans. Be ready that in any case, you will have high interest and possible additional fees.
- Union loan. If you are a member of any credit union, then you can apply for a $6000 loan in this organization. Generally, union loans offer attractive loan requirements and conditions for the union members. Yet, there is only one condition: you need to be a member of a union for at least half a year.
- Cosigner loan. Cosigners serve as a guarantee (a kind of collateral) to the lenders that they receive the borrowed money. Cosigner loans are generally beneficial for the applicants with a bad credit score because cosigners tend to have a better credit score and hence can make an impact on the lender’s deal. You will likely to get better interest rate and repayment plan.
- Peer-to-peer loan. This is a pretty favourable deal for any borrower which can be a perfect option. Peer-to-peer loans guarantee that you receive your $6000 loan with bad credit of almost any FICO score (yet the higher the score, the better the deal). The interest rates vary from 5% to about 40% depending on your credit score and additional information a lender might request. Be ready that loan regulations differ from state to state (payday loans Oklahoma rules may differ from the order of bad credit loans in Indiana). Make sure to learn the peculiarities before applying for one.
Where to get $6000 loan with bad credit?
- Bank is usually the number one lender when it comes to borrowing $6000 loan with bad credit. Banks offer attractive interest rates (usually about 14%-20%), feasible repayment plans, and transfer of money within three to seven business days. However, with banks, FICO score plays a huge role. Poor credit borrowers can be accepted, while only a limited number of banks would consider a really bad credit owner.
- Auto dealerships can help car owners. If you are ready to use your vehicle as collateral, then you can come to the nearest dealership and discuss your options. The interest goes from as little as 20% to as much as 240% and heavily depends on your vehicle kind and condition as well as the repayment period. Auto dealers do not pay that much attention to the credit score, so it is easier to apply for a $6000 loan with bad credit. You can expect to receive the money within a week.
- Online lenders generally offer the fastest deals for borrowers. Once you send your request with all the required documents, you are likely to receive the approval in one to three days and the money on the next business day after approval. The average interest of online services is about 30%, yet the terms, conditions, and fees will vary from case to case. This is, probably, the most convenient way to receive your money since the whole procedure is handled online.
- Credit unions, as mentioned above, are likely to have additional conditions for their borrowers. You need to be a union member, be a resident of the union’s state, and pay some membership fee even before applying for a loan. However, if you satisfy these basic conditions, the unions then offer more affordable interest rates and simpler repayment plans for their members.
How to get $6000 loan with bad credit?
To be approved for a $6000 loan, you need to satisfy the universal requirements, such as:
- Be a US citizen or a long-term resident and have proof of any status
- Be 18 years of age or more
- Be a resident of the lender’s state
- Have a steady source of income and be able to prove is (with a job contract or a bank statement for the past six months, which is more common)
Besides these official requirements, you will also need to show your credit score to most of the mentioned lenders. Some (banks) may have a requirement of a checking account (in their bank), others (credit unions) will need you to be their member). Every lender will have particular requirements to its $6000 loan borrowers, and it is essential that you learn about them before getting into the application process.
Note: every application has an impact on your FICO score. So instead of applying to several uncertain lenders, choose one most probable and best variant for you and apply there. Only if you get a rejection, move on to the next position on your list.
What bank will give me a $6000 loan with bad credit?
Local banks can offer a $6000 loan for bad credit owners. But there is no rule here. It is advised to take your phone and call several local institutions to inquire about the possibility of loan approval with your score. However, some major banks are known for dealing with borrowers with a low and bad credit score.
SunTrust Bank promises loans for practically everything, and its online service LightStream makes application process convenient and fast. PNC Bank is ideal for borrowers with non-regulated income since flexible payments are one of the perks with this bank. Wells Fargo is known for competitive rates and minimal fees as well as perfect discounts for loyal clients. You can also consider Citibank if you have a cosigner or U.S. Bank if you are looking for a home improvement loan (U.S. Bank has special rates for such applicants).
What should the first time $6000 loan bad credit borrower know?
There are several important facts that you should learn before applying for a $6000 loan. Some of it you might need to research while some are essential to ask a lender.
- Interest rate and fees or APR. Interest rate is the percentage you pay to the lender monthly and APR (Annual Percentage Rate) is the percentage you pay to the lender annually. Before you hand over your papers or click the “Send” button, ensure that you learn the numbers to select the most attractive lender for your credit score. Do not hesitate to call a lender directly and inquire about the conditions for a borrower with your credit score.
- Acceptance and returning terms. Sometimes you need to be a member of a union for a fixed period of time, sometimes you need to have a checking account, sometimes you might need to present more documents. Some lenders allow skipping one repayment without any fees others would toughen your conditions. Always ensure that you learn a complete list of requirement and repayment regulations at a particular lender before applying for a $6000 loan with bad credit.
- Fees and charges. Lenders usually have additional administrative and procedural fees that differ from one another. You might also face some penalties for late repayments. Ensure to learn about them beforehand to calculate whether a particular deal fits into your budget.
- Lender’s reputation. Yes, the market is full of scams that would change your $6000 loan deal on the go. Make sure that you select a lender with a good reputation from Better Business Bureau and do not forget to verify online reviews for this company online.
And the final important note. Getting a $6000 loan is a major decision that not only changes your credit score but can change your whole life. Make sure that you weigh all the pros and cons of getting a loan and apply only to a reliable source. In case you hesitate whether a $6000 loan with bad credit is manageable for you, think of applying for a smaller amount, such as $5000 loan or even a $4000 loan with bad credit.