My husband and I are trying to furnish our house and fix our car but we can't get a loan for higher than 1000 because we have no collaterol but neither of our parents have enough collaterol or don't want to sign our loan. How can we get a loan for 5000 in this situation?
2006-12-10 04:44:50 · 5 answers · asked by Catie K 1 in Business & Finance ➔ Credit
If you do find someone to loan you 5000, it will be at a very high interest rate. If you have title to the car, you could get a title loan. It sounds as if a 5000 loan is going to make you financial situation worse, not better. Fix the car first, then furnish your home with yard sale, salvation army, and goodwill items, you can find a lot of free items on www,craigslist.org. Then save and purchase new items of furniture one at a time. It sounds as though you are trying to acquire "things" faster than you can earn the money.
2006-12-10 05:08:28 · answer #1 · answered by Mike M. 5 · 0⤊ 0⤋
You need to do some shopping and prioritizing. Just like the first comment stated, if you receive an unsecured loan for $5000 you are looking at a higher interest rate, longer finance terms, ect. I received a $4500 from Beneficial (HSBS group), you may want to check them out if you are sure this is the right way (www.beneficial.com).
If your car is paid, fairly new, and has low mileage you may qualify for an auto loan (basically putting a loan lien on the car). This type of loan could offer a lower rate because of collateral. I have one of these loans through American General Finance (https://loans.agfcredit.com/Iaps/Html/AGHome.html).
As far as repair the car, that should be your first priority. If you had the car repaired and maintained at the dealership’s service department, see if they can offer you a payment plan. I had to get some major work done on my Honda a few years ago. The estimate was $1500, which I did not have. Since I was a loyal customer with the dealership’s service department, they worked out a payment plan. I paid $750 upfront and $250 every two week. Find out who the service department supervisor is and ask, it could not hurt.
2006-12-10 06:23:37 · answer #2 · answered by jynxx25 2 · 0⤊ 0⤋
start with the loan for $1000. do what you can - i.e. fix your car. take the funds that you would have paid for a higher loan amount and set them aside in a regular savings account. The five key elements a borrower should have to obtain credit: character (integrity), capacity (sufficient cash flow to service the obligation), capital (net worth), collateral (assets to secure the debt), and conditions (of the borrower and the overall economy).
in the absence of one they want more of another. being able to go back in 6 months showing that you have repaid the $1000 loan as agreed and saved funds will make an unsecured (no collateral) loan more available.
older vehicles are generally not accepted as collateral - and bankrupcy laws (different in each jurisdiction) sometimes state that if the loan was not for the purchase of the vehicle, the owner is able to hang on to it under a certain value.
2006-12-10 05:24:14 · answer #3 · answered by doesn't matter 2 · 0⤊ 0⤋
Are your furnishing plans and car repairs dire? If not, I would put it off. It's not worth the hassle.
However, if these expenditures are urgent, you might want to consider a home equity loan or line of credit. However, if you can't get a home equity loan because you don't have enough equity or not enough credit, consider getting a title loan for your car (if your state permits).
All in all, however, it's best NOT to get any further loans until you can pay down your home and get more equity or have built up more credit. No one wants to wait, but that's the reality.
2006-12-12 23:09:53 · answer #4 · answered by Guru Sharma Prasad 4 · 0⤊ 0⤋
If you own your house you can refinance it. Doing that will give you the extra money you need for things you need to do.
2006-12-12 17:36:33 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋