How To Get A $5000 Loan with Bad Credit

How To Get A $5000 Loan with Bad Credit
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People with bad credit often lose hope when it comes to borrowing money, especially today in Canada, where banks are less willing to lend. Many people have lost their jobs which then results in monthly debt payments. In turn causing bad credit ratings. Even those who still possess a stable job, sometimes aren’t able to maintain their payments due to the increased need to tighten up the budget. As a result, it affects their credit rating score poorly. But don’t despair or lose hope, there is still a chance to become approved by a lender.

Some people decide to start a small business instead of acquiring a steady job, and the average amount needed to start a small to medium business is about $5000. The question is: can you take a $5000 loan out even if you have bad credit history?

There are a lot of reasons that you might need $5,000 fast. Maybe you have a one-time emergency, and you have no funds to pay for it, but if you don’t, things will only get worse. Or perhaps you are looking in a positive direction, toward opportunity, but you don’t have the venture capital you need to get your plan off the ground. Whether you are trying to pay for an emergency or fund a startup company, it can be challenging to get a loan with bad credit. You will have a very hard time finding an unsecured loan, and you may not have enough collateral to qualify for a secured loan at most major banks. But there are still ways you can get a $5,000 loan in Canada even with bad credit if you know where to look.

In this article, we’ll introduce you to a couple of different options for small bad credit loans in Canada. The first is applicable to business loan scenarios, whereas the second is geared toward personal loans for use in emergencies. Always look for a lender that caters not just to your financial needs, but to the purpose of the loan you require. That way you will get the product which will be most compatible with your needs.

Two Best Options for Consumer with Bad Credit

 

1.

What if we told you your current monthly payments could be cut in half? Well this is actually happening and Consumerdebtaid.ca is inviting everyone with over $10,000 in debt to chat with them. Have your debt negotiated for you, on your behalf. There is no obligation, click the link below to get in touch and see how your debt can be reduced and credit rebuilt.

 

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2.

You don’t want to fix your credit score and negotiate lower debt so you opt for a high interest Payday Loan. You can apply online here as well.

Comparison of other alternatives:

Loans Secured on Pay Cheques (Bad Credit Loans)

Bad Credit Loans

  • Website: http://www.bad-credit-loans.ca/payday-loans-online/
  • Offering bad credit loans which are secured on payday cheques. You will need a steady job for these loans and payments can be reported to the credit bureau.
  • Loan amount of $500, $2300, $3200 and $5500
  • APR’s are generally high up to 36.00%
  • For bad credit loan amounts of $5500, monthly payments will be very high

Canada Drives (Auto Loans)

  • Application URL: http://www.bad-credit-loans.ca/car-loans/
  • They are really not a lender but a broker
  • They mainly offer Bad credit Auto Loans
  • Loan amount starts at $5000
  • APR of up to 31.9%
  • Payment term from one day up to 96 months
  • Offers secured loans only
  • Needs a driver’s license to apply, a stable job and must be at least 18 years old

These are two of the most reputable online bad credit lenders that will allow you to loan greater amounts. Make sure you try to look for other lenders in your town or community, there will be one or two there for sure if the above list doesn’t satisfy your needs.

There is another thing to consider when applying for bad credit loan totaling $5000 and that is the type of loan, will it be secured or unsecured? The two lenders above only offers secured loans. That means that you will need to have a collateral to be able to have a successful loan application. And with that enormous amount, your collateral needs to be precious too, like a car, a house or a precious jewelry. Unsecured loans on the other hand don’t require as much, but with that kind of bad credit loan amount, $5000, it is nearly impossible to find an individual who would risk such amount of money to lend to a person without any guarantee that he’ll be able to reclaim it.

 

Community Investment Funds

Bad Credit Debt Consolidation
If you are specifically looking for a loan to help you start up a small business, you might be able to get help from a Community Investment Fund. These are non-profit organizations which help people who can’t get loans through traditional banks or credit unions, either because of credit ratings or lack of collateral. These groups can help people with bad credit as well as no credit.

Note that you will only be able to qualify for one of these loans if you do it at a local level, and if your business is seen as locally viable. Most of these organizations are backed by funding from local businesses and service providers—not the federal government. Examples include the CDBC First-Time Entrepreneur Loan in Atlantic Canada, and the Quebec City Community Loan Fund.

Check your local area to see if there are any similar investment funds if you want the $5,000 loan for a small business. Many of these organizations will fund that much or more, if you need it (some may even loan as much as $150,000 to eligible recipients). You will have to have a business proposal with detailed plans for the intended use of the money you are going to be borrowing. A few organizations are a bit looser about their loan terms and what you can use the money for. The St. John Community Loan Fund for example will provide up to $5,000 for small business, but adds that loans can be used for “almost anything, as long as it is legal.”

Personal Loans and Payday Loans

Another option is a payday loan company, which may also be called a cash advance lender. These companies specialize in offering small, short-term personal loans to customers who are in need of funds for emergencies. The loan terms and lengths may vary. In general, expect a very high interest rate, and a short loan term. Payday loans take their name from the fact that you are generally required to repay them by your next payday—within two to four weeks. Some personal loans may be available for longer time periods (several months for example). It is in your own best interest to choose loans with the shortest possible terms you can manage, so that you do not lose a lot of money on interest.

Be very careful when you are shopping for payday loans. There are many reputable personal lending companies out there, but there are also plenty of scammers as well who will attempt to defraud vulnerable customers. Do thorough research on any payday loan company you are thinking of borrowing from, and make sure you read the terms of the loan you are offered very carefully. The company will probably take the repayment plus the interest owed on the due date directly from your bank account. So if the money isn’t there, you will overdraw, and owe your bank fees. And that means even more money to pay back, and they could compound over time if you don’t take care of your debt quick.

Personal loans like these which are very short term in nature are intended for emergency use only. You should not take them out to pay for non-essential things, and you should never make a regular habit of using them, otherwise you can fall into a well of debt that gets deeper and deeper. You also would not want to go this route for a small business loan, since the interest rate and the terms are far too restrictive. But if you have a one-time medical bill, car repair, or other emergency to pay for, they can be great—as long as you can pay them back on time.

Applying for payday loans is easy, once you find a company you can trust. You can often do it online, and receive the money immediately once your application is approved (which can happen within a couple of days or even on the same day). This can be very helpful if you are pressed for time or money for transportation.

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However you decide to get a personal or business loan in Canada, always do your research and your math. Ask yourself whether you will be able to pay back the loan on time with interest. Taking out a loan with a high interest rate is always going to end up costing you money, but any trustworthy lender will provide you with full details and an exact statement of what you will owe if you pay on time, as well as the consequences should you be late on payments. Make smart decisions about small bad credit loans in Canada, and only take out what you can afford to pay back.

 

 

  1. Need a personal loan please email me info

  2. Hi Sarah my name is William bit can call me Bill. Ive been reading what your materials about seeking for pwrsonal loans for people with bad credit. Here’s my situation….I fell victim to online fraud by giving money to a company based in California by giving money upfront with the promise of obtaining 10000 dollars in return. That never happened and now im in a major financial crisis and I am struggling to pay rent and other bills. I am seeking to find a company that would grant me a loan of anywhere between 3-5 grand to get caught up. I do have a good steady full time job but I do not have any collateral to offer the lender. Can you please help me find a solution to this mess?

    Regards
    William ( Bill ) Allen

    Oshawa, Ontario, Canada

  3. I would like to borrow up to $5000 and please let me know how to apply as I dont have a very good credit.

  4. Hello Alice,

    There are a number of providers who can assist you with getting a loan in Canada, even if you’ve got credit that’s not the best. If you’re looking for a mortgage, check out some information on these lenders here – http://www.bad-credit-loans.ca/mortgage-lenders/. Additionally, if you are looking for a car loan or smaller amount you should check out our guidance on this page – http://www.bad-credit-loans.ca/car-loans/.

    We also always recommend that individuals try to save and keep better control over their money.

    Good luck!!

  5. Hi, There are a range of sites you can visit that talk about obtaining loans even if you have bad credit. Also you should try to find ways to manage your money so you may want to read a bit more on that too.
    Good luck!

  6. Hi Bill, It’s awful to hear that you got caught up in identity fraud. Unfortunately this is on the rise & many people face bad credit situations because of it these days. There are a number of firms who can help you. First of all, you should think about what you need the loan for? If it’s for a car or something of a similar value, you may want to use our application tool – http://www.bad-credit-loans.ca/car-loans/. Also I strongly recommend reading a bit more about managing money – http://www.rabbitfunds.com/2011/08/trouble-clean-up-my-finances/. Although you were the victim of identity fraud you also need to demonstrate a good track record again so you can restore your credit properly. I would also recommend contacting your personal banker to see if they can help you at all since they’ll already know your habits around managing your finances.

    Good luck!!

  7. Thanks – it’s always good for our readers to have different alternatives. All the best, Miriam :)

  8. need a personal loan not a payloan where i can pay some bills and car payments

  9. Hi Domenic, We would steer most of our readers away from Payday loans so they can manage their money better. Personal loans are always a good idea whether you just need a bit of help paying off bills/other payments OR to consolidate a range of expenses/debts. We have some links on our website for a few partner sites that can offer you some help with your personal loan needs. You can apply for a car loan through our site – http://www.bad-credit-loans.ca/car-loans/. There are also some links on that page on the right hand side that can offer you other loans if you need one. Good luck Miriam :)

  10. I want to get loan for $ 10,000 can you help where to get

  11. Hi Sylve,
    Thanks for your comment. Do you have bad, poor, fair or good credit? If you are looking for a car loan, you can raise an application to a lender on our site – http://www.bad-credit-loans.ca/car-loans/. I assume from the amount of money you’re looking for that a payday loan wouldn’t make sense at all. There are also a range of links for other personal loans on the right hand navigation of the site. After clicking on the link, one of the lenders can assist you from there. Good luck, Miriam :)

  12. applied for a loan on January 1st but i never got a reply from, http://www.badcreditloan

  13. Thank you – I have removed his posts.

  14. I need aloan for 60000 so I could buy a house please let me know if you can help bad credit also want to pay off consolidate prosal ,have good job
    Pauline

  15. Hi Pauline, Thanks for your post. If you are looking for a loan for a home you may want to look at our mortgage lending page – http://www.bad-credit-loans.ca/mortgage-lenders/ and get in touch with some of the lenders there. For debt consolidation, you can visit this page on our site – http://www.bad-credit-loans.ca/debt-consolidation/ – which can provide some more information & helpful links to providers. Good luck! Miriam

  16. Hi

    Do you provide loans to Canadians?

  17. Hi all – I’ve found that Prudent Financial is an excellent lender in the GTA. They have the lowest rates of any bad credit lender and they’ve been around for years.

  18. Hi Bobby,
    Thanks for your suggestion. It’s always useful for our readers to hear about good lenders for their needs. Anyone else have a suggestion for a good bad credit lender they can offer? Thanks again, Miriam :)

  19. Hi all, I was wondering if there was a decent consolidation loan company out there, that I could use living in British Columbia? Prudent looked good until I saw it was Ontario only. I was looking for around $15000, and unfortunately do not have enough equity in my mortgage yet to qualify. I have looked around online, but it seems so many of these companies are shady or scams.

    Thanks,
    Joel

  20. Hello Joel, Have you applied through our online application? Otherwise I can recommend getting in touch with the nomoredebts.org. They may be able to link you directly if you aren’t able to get any help by applying online through our site.

  21. Hello, I been offered $10,000 unsecured loan from a place call forestdale financial. Anyone ever heard of it? They say it is to reestablish your bad credit, but you have to send them $695 to cover and insurance policy in case you were to lose your income in any kind of way then they would cover your monthly payments until you are back at work. Is this a scam or is it legit?

  22. I am in need of a loan to pay off money that I owe to a friend, $3,000.00. I have $2,700.00 in credit card debt. I make $1,040.00 a month but have no expenses. The most important is to pay off the $3,000.00 that is needed ASAP (end of next week). Do you know what my best options are?
    Thank You

  23. Hi Ashley, if you get in touch with one of our affiliate loan providers (links are on our site) they may be able to provide a solution for you. They will look at a variety of options for you including debt consolidation and other methods of clearing your debt. Good luck, Miriam

  24. I am looking for a loan for $5000 that being said most my ID was stolen and so far all I have back is my health card SIN and birth certificate, where can I go?

    Please advise

  25. Miriam Berman May 12, 2014, 5:48 pm

    Hello Lacey, First of all, we’re so sorry to hear about the identity theft you experienced. It is a very difficult situation when this happens and it’s unfortunate that a lot of the responsibility is left with you to deal with. Have you contacted the credit bureaus (Equifax & TransUnion) to advise them? I would highly recommend doing this. Unfortunately – again – they are difficult to get in touch with but if you fax them or post a letter to them they are required to reply to you within a certain period of time.
    For your loan needs, I would suggest visiting our loans page – http://www.bad-credit-loans.ca/loans/. Depending on what the loan is for you can click through and complete an application. For instance, our “Personal Loans” page leads to Refresh Financial which provides personal loans for various denominations.

    I hope that my reply was useful & good luck to you, Miriam

  26. Hello
    I also have been dealing with Forestdale Financial regarding a 7000.00 loan to rebuild my credit thanks to my ex completely destroying it without my knowledge. The issue I have is I was emailed a contract to sign and send back. It looks legal and because I didn’t have a cosigner I was asked to send them four months payments up front. I tried calling the 18886416333 phone number I’ve been calling for a couple of weeks now and talking to this girl and all of a sudden it says it’s temporary inactive ? I’m basically homeless without this loan and I did not send the payment to them yet. Please advise if you have heard if them. Their web site looks legit but only an email address and no phone number.

  27. The car loan website has nothing on personal loans. I need a small loan for my mortgage payment which happened to fall at the same time as another payment and my pay wasn’t big enough for both. I am currently in a consolidation program so do not need budgeting advice. As they provide lots

  28. Hi Kris. Unfortunately sometimes payday loans are the only option once traditional routes such as bank loans, have been exhausted.

  29. I agree, I don’t mind payday loans. As long as they don’t call the employer. I just couldn’t find any link on you website. Do you have any other suggestions. Right now I will try almost anyone. I don’t want to lose my house.>

  30. Hi there, I’m looking for a personal loan for around $3,000 to $5,000. I’ve already obtained one from Easy Financial (they are fantastic) but unfortunatly they gave me the maximum and I need a bit more. Are there any other companies out there that’ll loan to me? I have a great job, make pretty good money, but unfortunatly just let a few things get away from me and if I could just borrorw even $3,000 that would get me back on track. Help!!

  31. Hello Cathy, Try to click through some of the links on our site. You can apply for a loan online through these providers and they may be able to help you – http://www.bad-credit-loans.ca/. Another alternative are payday lenders but please only use these providers for very short-term loans due to higher interest rates.
    Good luck, Miriam

  32. Hello I am a permanent resident in canada I’ve made 1/2 mistakes now my credit rating is just very weak but I have a good full time job but cannot get ahead I need to pay of some bills and catch up on things 3000-3500 max I’ve asked My bank for loan or loc will not entertain me yet they have made such a lot of money on fees from me it’s so frustrating is there any advice or banks that would be willing to give you a chance to redeem yourself once again and live a life without worrying constantly thank you in advance.

  33. Hi Freddy,
    Try to use the links on our site to apply for the loan. We don’t provide the loan ourselves but one of the partner sites may be able to help you.
    Thanks Miriam

  34. Thanks for reply I used one of links I seen on page and was contacted next day regarding application now as I said I’ve poor credit so it’s hard for me he told me there was two options co-signer which I can do at me bank with him but I don’t have that option 2 they co-sign for a fee of $650 which is refundable of course , is this something you’ve heard or come across before ? Alarm bells are ringing in my head big time thanks
    Freddy

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