When applying to borrow £5000, as exciting as it may seem, there are still some precautions you need to take and some factors to consider.
A loan is one way to fund things like developing your career prospects or improving your home but not for funding a spending spree or a night out. Before you apply for a loan, ask yourself do you really need to borrow and are there cheaper alternatives?
If you’re looking for a loan to pay off existing debt, try to consider other ways you can rectify the situation, such as managing your spending or budgeting to save money in advance of needing to spend.
Can I get a loan for £5000 with no guarantor to support my application?
There are a number of direct lenders in the UK that provide loans for £5000, that do not require you to have a guarantor. However, the key factor on whether a no guarantor loan is a viable option is your credit history. If you have a poor credit history it is likely that the only way to borrow a larger amount of cash is if you either find a guarantor to support your application or secure the loan against something of value eg. your house. Both of which come with the obvious risks that you should be aware of before you apply.
Will UK direct lenders offer me £5000 with bad credit?
If you have missed or defaulted on repayments in the past or have a CCJ recorded on your credit file it’s likely that lenders will consider you to have bad credit. If this is the case, it’s not the end of the world there are £5000 bad credit loan options, however your cheapest option and greatest chance of acceptance is likely to be if you can find a guarantor to support your application.
How long will I have to repay a £5000 personal loan?
This will vary from customer to customer. When you finalise a loan with a direct lender you will have an agreement in place that outlines how much you are expected to repay. Typically a £5000 loan would be repaid over at least 24 months but are available over shorter periods. Take your monthly cash flow into consideration and how much you can afford to spend on repayments allowing yourself plenty of extra cash to cover your essential household expenditure.
Although you may see loans advertised for home improvements or weddings, most loans can be used for anything you like (within reason). The reason lenders ask for your loan purpose is that it allows them to build a picture of why and what you plan to do with the money which helps in deciding whether or not lending to you is a responsible thing to do.
Each lenders requirements will vary but as a minimum you will have to be a UK resident and over the age of 18, sometimes over the age of 21 or 23, depending on where you’re applying. You will also be required to have a UK bank account, where the cash can be deposited if you are approved.