Getting a $5,000 loan with bad credit

getting a $5,000 loan with bad credit

If you’re currently struggling financially, you probably know that it’s not always easy to get a large personal loan. Getting a $5,000 loan with bad credit may be challenging, but it’s not impossible! Typically, lenders base their approval decisions partly on the credit scores of their applicants. Borrowers with higher scores are generally given quick approval for a wide variety of financial products, while borrowers with low credit scores may be left with just bad credit loans. However, it’s possible to find $5,000 bad credit loans, it may just require a bit of research and looking around. 

For borrowers with poor credit scores, bad credit loans tend to be for smaller amounts. If you need several thousand dollars, make sure you do your research. Finding a lender you can trust is very important when borrowing this much money.

I Need $5000 Dollars Now With Bad Credit!

Oftentimes, emergency situations require quick cash. Maybe your car broke down, and you need to get the kids to school. Maybe you received some unexpected medical bills you weren’t aware of. In both cases, it would help to get some quick cash. And depending on the amount of the bills, you may need several thousand dollars. 

So what are your options for getting the cash you need? Some people have the option of using a bank loan or a credit card. It’s important to be careful when using credit cards to pay off debt, however. According to the U.S. Federal Reserve, Americans owed a total of about $4,806.3 billion in outstanding credit card debt as of late 2023.1 

Furthermore, if your credit score is low, those options may not be available to you. Many quick bad credit personal loans offer lower amounts ranging up to a few hundred dollars. 

Luckily, there are lenders out there that could provide you with a $5,000 loan.

Direct Lenders Offering Bad Credit Personal Loans

The first step in your search should be to figure out what kind of lenders will offer you up to $5,000. Luckily, CreditNinja is here to help with that. Below are a few different types of lenders that may be able to provide you with that much money. But remember, it’s very important to properly research any lender you’re considering. While some of the lenders below may offer this much money, their interest rates might make it too risky. 

Personal Installment Lenders

These lenders tend to offer higher personal loan amounts compared to other bad credit lenders. But, the amount you personally qualify for may differ based on your borrowing history and the state where you live. 

With personal installment loans, you make monthly payments or “installments” until the entirety of the loan and interest are paid off. These loans may also have more reasonable interest rates compared to some other small-dollar personal loans. 

Title Lenders

Title loans are a type of secured loan that uses the borrower’s free-and-clear vehicle title as collateral. These secured loans are a risky option if having a vehicle is a necessity in your life. Getting a $5,000 loan with bad credit through a title loan means offering up the title to your vehicle as collateral. This means that if you don’t repay the loan on time, the lender may take your vehicle and sell it to recoup their loss. 

With a title loan, the amount of money you get will be a fraction of the value of your vehicle. The lender will evaluate your car, truck, SUV, or motorcycle and determine its value. They will then offer you a cash loan equal to a fraction of that value. So the higher the value of your vehicle, the more money you can get. 

Payday Lenders

Payday loans online tend to be for smaller amounts, like a few hundred dollars. That being said, you may be able to find a payday lender offering larger payday loans up to $5,000. But is it a good idea to take out such large cash advance loans? That depends on whether you’ll be able to pay it back. 

Because the repayment period for payday loans is so short (usually only two weeks), they can be difficult to repay. And when you consider the amount of interest and fees associated with them, larger payday loans may be nearly impossible to repay in such a short period. 

Bad Credit Personal Loans vs. Payday Loans

While payday loans and bad credit loans are often similar, they have a few distinct differences all borrowers should be aware of. 

CriteriaBad Credit Personal LoansPayday Loans
Loan Amount RangePersonal loans can range from $1,000 – $10,000Payday loans typically range form $100 – $1,000
Typical Interest Rate 15% – 35%300% – 400%
Loan Term6 months –  5 years2 weeks – 1 month
Approval Time1 -3 business days Within 24 hours
Impact on Credit ScoresCan improve with timely payments.Typically doesn’t help improve credit.
Eligibility for Bad Credit BorrowersHigh (with higher interest)Very high
FeesOrigination, late paymentHigh service fees 
Collateral Required No (unsecured loan)No
Use of FundsAny purposeShort-term needs
Risk for Bad Credit Borrowers ModerateHigh (due to short repayment term and high interest)
Change of Bad Credit Personal Loans Guaranteed ApprovalModerate (depends on the lender)High (but with unfavorable terms)
Disclaimer: The information provided in the above table is for general informational purposes only and should not be considered financial advice. Interest rates, personal loan amounts, and terms can vary widely based on the lender, state regulations, and individual financial situations. It’s essential for consumers to do their own research and consult with a financial advisor or lender before making any borrowing decisions. Always read the terms and conditions of any loan agreement carefully.

Should I Get a Personal Loan or Use a Credit Card?

Personal loans and credit cards are two common ways consumers can cover their expenses. But, depending on the type of expenses you are looking to cover, you may find that one product will work better for you than another. 

Personal loans may work better for bigger expenses that will take longer to pay off. For example, if you are looking for funds to pay for major home repairs/renovations or other expenses that will take a few months or more to pay off, a personal loan may be the more sustainable option over a credit card. In general, personal loans tend to have more competitive interest rates over credit cards, making them a better option for long-term expenses. 

But, if you are looking to cover a few small emergency expenses you can pay off in a few weeks or less, a credit card may be a good option. While interest rates are generally higher with credit cards, you may not have to deal with them if you pay off your balance in full before the end of your billing period.   

Personal Lines of Credit vs. Credit Cards 

You may also be debating between using a personal line of credit or credit card to pay for your expenses. While personal lines of credit and credit cards are similar, credit cards tend to be more popular. You may find there are more options with less-strict approval requirements for borrowers looking to get a credit card over a personal line of credit. However, with both of these financial products, be cautious of accumulating a balance that is too high so your debt doesn’t become unmanageable.  

What Are Instant-Approval Loans for Bad Credit Borrowers?

When a lender says they offer “instant approval” for bad credit personal loans, it most likely means that you will receive a decision on your application as soon as it’s submitted. And since many lenders now offer online applications, you can apply for a loan online with bad credit and get a decision instantly after completing the application. 

Tips for Improving a Bad Credit Score 

The higher your credit score is, the easier it will be to get approved for a $5,000 loan. You can utilize the tips below to work on building your credit! 

Make Your Payments On Time 

The most important habit you can pick up that will help you improve a bad credit score is to make all your due payments on time. Payment history is the most influential factor that goes into calculating your credit score, so, to see the most significant improvement you will want to work on having a steady payment history. 

If you have trouble remembering to make your various payments on time, consider signing up for autopay. With autopay, your minimum payment amount will be removed from your checking account on the day your payment is due. That way, you don’t have to worry about manually making the payment yourself! Just make sure you have sufficient funds in your bank account to avoid insufficient funds fees or other penalties. 

Focus on Repaying Debts

Another habit you can pick up that will help improve your credit is to focus on paying down your debts. As you pay off debts and improve your debt-to-income ratio, credit bureaus will see this activity as financially responsible activity. To help pay off debts consider using repayment strategies such as the avalanche or snowball methods. 

Limit New Credit Inquiries 

While trying to improve your credit, try to limit the amount of new credit inquiries you submit. Every time you apply for a loan, credit card, or other financial product, the creditor will request a hard credit check. With each hard credit check, you may see your overall credit score drop a few points. Because of this drop, you’ll want to avoid applying for more loans or lines of credit while you are working on raising your credit score.

Become an Authorized User 

Becoming an authorized user on a credit card allows you to benefit from having access to a high credit limit without being responsible for repaying the balance. To become an authorized user, a primary credit card holder must add you into their account. From there, you can spend money against their credit limit as well as benefit from the increased credit amount on your next credit report. 

FAQ: Bad Credit Personal Loans

What is a personal loan, and how does it differ from other types of loans? 

A personal loan is a type of unsecured loan that doesn’t require any collateral. Unlike secured loans, where you might use property or other assets as collateral, personal loans are based on your creditworthiness.

How can a personal loan be used for debt consolidation? 

Debt consolidation involves taking out a new personal loan to pay off multiple debts. A personal loan can be used for this purpose, allowing you to combine several debts into a single monthly payment, often with a lower interest rate.

What are unsecured loans? 

Unsecured loans are personal loans that don’t require any collateral. This means that the lender is taking on more risk, which might result in higher interest rates compared to secured loans.

Do I need a bank account to get a personal loan? 

Yes, most direct lenders require you to have a bank account to get a personal loan. The bank account is used to deposit the personal loan amount and also to collect repayments.

What does “bad credit personal loans guaranteed approval” mean? 

“Bad credit personal loans guaranteed approval,” also referred to as bad credit loans, suggests that a lender will approve the loan regardless of your credit history. However, it’s essential to be cautious, as such personal loan offers might come with high interest rates or unfavorable terms.

Can I borrow money with a personal loan even if I have a bad credit score? 

Yes, there are direct lenders who offer bad credit loans. However, the interest rates might be higher due to the increased risk associated with lending to individuals with a poor credit score.

What’s the difference between a poor credit score and a fair credit score? 

A poor credit score typically indicates a history of missed payments or other negative financial behaviors, while a fair credit score suggests a slightly better credit history but might still have some negative marks.

How is my credit rating determined? 

Your credit rating is determined based on various factors, including your payment history, the amount of debt you have, the length of your credit history, and the types of credit you’ve used. All this information is found in your credit report.

What is the minimum credit score required to get a personal loan? 

The minimum credit score varies by the direct lender. Some lenders might offer loans to individuals with scores as low as 500, while others might require a higher score. It’s essential to check with the direct lender about their requirements.

How can I improve my bad credit score? 

Improving a bad credit score involves consistent on-time payments, reducing outstanding debt, and regularly checking your credit report for any errors or discrepancies.

A Word From CreditNinja About Bad Credit Personal Loans Guaranteed Approval 

While bad credit loans that offer instant or guaranteed approval may seem convenient, they often come with hidden consequences consumers don’t realize until it’s too late. Instead, CreditNinja encourages everyone to research lenders and compare multiple offers before committing to any one personal loan. 

At CreditNinja, you’ll receive a decision right away. We offer online personal installment loans that allow you to get cash and make payments, all from the comfort of your home. You can also ditch the hassles and hidden fees that often come with predatory lending products like payday loans.  Borrowers can also enjoy the following benefits when they choose CreditNinja:

  • Flexible repayment terms
  • Quick cash*
  • Bad credit scores OK
  • Easy online process

Getting a $5,000 bad credit personal loan  doesn’t have to be a chore. Apply today to see how much you may qualify for!


  1. Federal Reserve Board – Consumer Credit – G.19 | U.S. Federal Reserve

* Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications approved before 10:30 a.m. CT Monday – Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case, the loan if approved, will be funded the business day after such additional verification is completed.

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