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- £5000 loans are specific types of loans built for emergencies to allow customers to get the money they need when they need it.
- Quick and easy loans that have flexible repayment terms and interest rates that customers can rely on.
- £5k loans are can be an option to almost everyone even those with a bad credit history.
How to get the ideal £5,000 loan
If you want a cheap and flexible way to borrow money to cover expensive purchases and home improvements, taking out a 5000 loan could be the solution you are looking for. The good news is, obtaining the financial product has never been better in the UK. For one, there are numerous options available online and in brick and mortar shops and the high number of competition has dragged interest rates down for borrowers to celebrate. And because they are offered online, you can take out a loan right in the comfort and convenience of your own home.
As mentioned earlier, there are a variety of sources for a 5000 loan in the UK. If you want to enjoy the best deals from a reputable lender then you will want to use a known and trusted broker like PickALoan, who can review the financial market in full, thus getting you the best rates and terms for you and your circumstances. Because you already know how much you want to borrow, the next three steps would include:
- Determine how long you would need to pay back the loan, this is called the duration. This will depend on your budget and your present circumstances.
- Do your homework. Search the internet for reliable lenders and compare their different rates so you will find the cheapest loan, or use a broker to save on both time and money.
- Ensure that you meet the lender’s rules and eligibility criteria before you make an application. Know how you’re going to afford your repayments.
With these three steps in mind, you will realize that taking out the right £5,000 loan is easier than you might have originally thought. And if you have found the lender of your choice, you can simply make your application online and wait for a decision from your lender that can sometimes take just several minutes. And once you have been approved, you will normally get your money after two business days. It’s that quick and simple!
The cheapest £5,000 Loan
The cheapest 5000 loan is the one that will offer you the lowest APR(interest rate) for the kind of period that you want to borrow. Using a comparison site or a broker site could help you get the cheapest loan available in the UK. Comparison sites normally provide £5,000 personal loan options available in the UK today, so you can compare rates to find the best loan.
How To Get the Cheapest £5,000 Loan
To get the cheapest loan, possessing a good credit rating is often crucial. Lenders normally reserve the best APR for those with good credit score and a credit history that reflects responsible lending with no late and missed payments. And before you can take out a loan from a reputable source like (Pick A Loan), you must also meet certain requirements such as:
- Being a UK resident and at least 18 years of age
- Have a minimum annual income that meets the lender’s criteria
- Possess a good credit record e.g. no history of missing loan payments
- No history of bankruptcy
If you possess a good credit rating and meet the requirements above, taking out the cheapest 5000 loan would be a walk in the park.
£5000 Loan Bad Credit
If you have bad credit, would you still qualify for a £5,000 loan? The answer is yes. There are still lenders who offer £5000 bad credit loans designed for borrowers who do not possess a good credit history. These loans can be found by introducers like us at Pickaloan, the types of bad credit loans available fit into two categories:
- Secured £5,000 Loan Bad Credit – With this type of 5000the loan, you will need to offer an asset like a house or car to secure the loan. The asset will serve as collateral and in the event that you won’t be able to make your repayments, the lender has the legal right to take possession of it. This means that lenders will grant you the money that you need simply because there is a collateral that will help them cover their losses if you decide to default on your loan. With that being said, your bad credit rating will not be that of a factor but will also mean that you risk losing your house or car if you don’t make the repayment.
- Unsecured £5,000 Loan Bad Credit – An unsecured loan will not require you to put up any form of collateral whatsoever. You only have your name and reputation to back your loan. The best way to obtain an unsecured 5000 loan if you have bad credit is by providing a guarantor. The guarantor will act as a second party to your loan and will agree to make the payments if you are unable to. This offsets the risk associated with your bad credit allowing lenders to give you the money that you need with the knowledge that there is someone to back you up if you find yourself struggling to make the proper repayments.
If you want a bad credit no guarantor loan simply because you cannot source out a guarantor to back up your bad credit, then taking out a secured loan is the ideal route. While you can still take out a 5000 loan bad credit no guarantor that is unsecured, lenders may end up charging you with higher interest rates to compensate for the high risk involved in your application.
£5,000 Loan over 5 Years
5000 loan over 5 years is offered by only a few lenders like AmigoLoans and GeorgeBanco. You can take out the loan and pay it back after between 5 to 7 years, depending on your lender, your eligibility, and your personal choice.
The advantage of taking out a 5000 loan over 5 years is that it gives you more than enough time to pay back your loan. And because the interest rate is normally fixed for every month of payment, it would also be easier for you to make an effective budget to make your repayments without struggling with your finances.
£5000 Loan FAQs
How does the loan work?
Unlike other types of loans, this loan gives out a specific amount of money so you already have an idea of how much money you will be getting. Apart from these, every other thing is pretty much the same. You can apply online and compare loans to find the right lender. Doing so will allow you to negotiate terms that will be of benefit to you. For example, you can negotiate a repayment plan that will ensure you do not have issues paying the loan back. You can also work with a lender that offers interest rates that you are comfortable with. In essence, it could be a win-win situation for you.
Can I get the loan even if I have a poor credit history?
Most lenders will like to conduct some sort of a credit check before granting you a 5000 loan. So the chances of you securing the loan with bad credits are reduced, but not impossible. However, if you compare loans and search for the right lender, you may be able to find one with rules that will be of benefit to you. Note that lender’s who give loans to people with bad credit tend to charge higher interest rates because of the risk they have to contend with.
But if you desperately need to get cash, you can try other loan options like Installment loans with no credit check. You stand a better chance of getting the 5000 pounds you need even if you have bad credits. But note that you may need a guarantor or some form of collateral to secure this type of loan.
What do I need to be accepted for a 5000 pound loan?
Since you already know how much you need, the rest of the process is easy:
- Make sure you earn enough money annually so you can meet or surpass the lender’s specification.
- Be eighteen or above and you must live in the UK.
- Have a means of identification.
If you meet the above criteria and your credit score is not so bad, most lenders will be inclined to give you a loan.
How long will the loan process take?
If you meet all of the lender’s requirements, the loan amount will be released to you as soon as possible. Some times you could get it the same day your application was approved or a day or two after. Our lenders ensure that customers get the money they need fast as long as the loan process is successful.