How to Get a $2000 Loan

There are always times when the need for fast cash arises. The problem is most of us do not have the money saved to take care of these issues.

Anything from an automotive repair to an unexpected medical bill can cause these problems. The following are a few places where you can find a $2000 loan with good credit or bad.

Where to borrow $2000 with good credit

Traditional bank

A traditional bank is usually the first place someone with good credit will go to get a loan. Most big banks, such as Bank of America, do not really like to write small personal loans.

This means that the interest rate will usually still be quite high even with your good credit. Smaller community banks are a great alternative to big banks. You will usually get much better customer service and a better rate on your $2000 loan.

Credit union

An even better alternative to a community bank would be a credit union. If you are a member of a credit union then you already know most of these institutions offer fantastic customer relations.

This is because account holders at the credit union are the owners. The employees work for you. Credit unions pass the savings of operating a nonprofit back to the owners.

There are credit unions available to nearly everyone either through an employer or even the location in which you live.

How to get a $2000 loan with bad credit

Family members

If you need a $2000 loan and you have bad credit, your choices are much more limited. One of the first places to look for a loan would be through family members.

Many people don’t like the thought of borrowing from family; however, this can often be your best chance of getting a good interest rate and creating a win-win situation.

If you have a good relationship with a family member who has the extra cash, you can offer them a chance to earn a greater rate of return than they could through traditional investing.

A loan document should still be drawn up even between family members to avoid any conflict in the future over the loan.

Pawnshops

If you have something of value you may be able to use it as collateral for loans through a pawnshop.

Pawnshops have been making a big comeback in recent years because of the economic downturn. The great thing about going through a pawnshop is that your collateral guarantees the loan and as long as you pay it back you can get your valuable item returned.

Peer to Peer Lending

Peer-to-peer lending has also become a popular spot to get a loan when you have bad credit.

Sites such as prosper.com and lendingclub.com create a community to bring together borrowers and private lenders. You will be ranked by your credit risk using your credit score and other factors.

The worse your credit rating the higher the interest rate you’re going to have to pay. However, the process is easy and the site lets you tell your story about how your credit got bad and exactly what you will use the money for.

Payday Loans

Payday loans are one of the last resorts you should use to get a $2000 loan. The fees and interest rates charged on payday loans can be astronomical. Not to mention, if you are late paying the loan back you can incur further charges.

Today with online payday loans it is easier than ever to receive these types of loans. However, try your hardest to exhaust all other avenues before resorting to online payday loans to get your money.

Final word

There are many different ways to get a $2000 loan, both with good credit and bad. It is important to compare interest rates and terms before deciding on a loan. Be careful of payday loans, which can have very high-interest rates and fees.

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