If you need a 6000 loan, there are several factors that will affect your ability to secure this kind of funding. These factors are very different than those that may be considered for a smaller amount, such as a 1000 cash advance or signature loan. You will not be able to use payday or cash advance programs. Your main source will be financial institutions, such as banks or credit unions. You may even need to be more creative, in obtaining such funding. In this post the various options are reviewed, along with suggestions on how to get creative and bypass traditional organizations, to fund a 6000 dollar loan.
The main source to consider for funding more than a 5000 loan is a financial institution. Cash advance companies rarely offer amounts greater than 1000 or 15000. This makes quite a bit of sense, when you consider the high interest rates and fees such lenders charge. Most of the payday lenders will only offer to loan a quarter of your monthly salary. You would need an income of $24,000 monthly, to quality for a 6000 loan.
Financial institutions such as banks will likely have a couple options. Usually they include secured and unsecured loans. Each of these programs has benefits and drawbacks. Secured loans are easier to qualify for, as some tangible asset or assets are used as collateral. Assets can be a home, car, property or stocks and bonds. There is a risk in losing the property, if you do not keep up with payments. Unsecured loans do not involve such risk and do not require collateral or physical assets to be used. They are sometimes referred to as signature loans, because your signature is the only thing that guarantees payment. The interest rate on such loans is typically greater, as the institution is taking a greater risk with a loan for 6000. Both forms of financing require a satisfactory credit rating and stable income verification.
So, what can you do if you need a 6000 loan and have poor credit? One option that banks may not mention is to find a co-signer or somebody willing to use their credit rating, to help secure the financing. Usually a credit score of 700 or better is required for a co-signer. The person must be willing to sign the agreement. This helps you secure a loan with a good credit rating. The financial institution can hold you and the co-signer responsible, if the loan is defaulted on. It is important to keep in mind, that if financing is secured in such a manner, you make the payments on time. Otherwise, you may jeopardize your credit and that of the person who signed. You will not want to risk losing a friendship or distancing a favorite relative, by not keeping up with payments. Sit down with the co-signer and work out a monthly budget, so that he or she can see you are able to make the monthly payments.