Looking for a $6000 installment loan but worried about bad credit? There are a few options you can choose whether you want to borrow money for personal or business purposes. In general, such financing are not recommended to be used lightly and avoid long term loans at high interest rates. A short term high risk loan limits the total amount of interest payable, which helps to avoid increasing your debt load and making your finances worse.
There are generally 2 ways to get $6000 direct installment loans for the bad credit, aside from asking friends for a private loan with no interest. We will check out the difference between installment loans and P2P loans, given that most people are only aware of bank loans and have no idea where to get a loan when denied due to low FICO score.
Lenders are willing to give $6000 high risk installment loan even if you have bad credit, as long as you have a stable job or income. For this amount, you may need 3 to 6 months to pay back, depending on how much you earn. However, most people only borrow up to $1500 on high risk loans, so this is quite a big amount we are talking here. Make sure you realize how much interest fees this unsecured personal loan is going to cost you. So if you determined that the loan costs are worth it, use the money carefully to bridge any gaps you currently face in your financial needs.
An unsecured installment loan is available at online loan companies for convenience. They require that you have a checking account and a job. Most lenders will do a credit check, even if they have to turn away 90% of all borrowers. There is also no requirement for a collateral to secure the loan, which complicates paperwork and adds delays.
However, there may be additional costs on such online installment loans such as up front costs and interest rate costs. The average up front cost is the maximum of $500 or 15% of the loan amount, while the average interest rate cost is approximately 400% annualized. As you can see, the interest fees are staggering which is why very few people will borrow large installment loans for more than 3 months.
Peer to peer (P2P) online lending networks such as Prosper are becoming the new way for people to borrow or lend out money. Yes, ordinary people can lend out a small amount of money in order to earn better returns compared to CDs, mutual funds etc. Most borrowers who are interested in getting a $6000 p2p loan do so because banks refuse to lend them any money due to their poor credit or lack of collateral. Thus, to get a peer to peer loan, you have to pay more interest fees to compensate the lenders for the risk exposure. Different lenders on prosper may have their own additional lending requirements, and you can borrow from more than 1 lender to make up the required funds.
We need to warn you that many people end up taking another loan just to cover an existing installment loan, and never manage to improve their financial situation at all. Their debts simply grew larger and faster after being stuck with an expensive predatory loan for people with bad credit.