$5,000 loans

How can I get a $5,000 loan?

Taking out a personal loan is probably the simplest way for most borrowers to get a $5,000 loan.

• While payday loans are advertised as fast, easy ways to get smaller loans, they're limited by law to $2,000 and have very high fees.

What kind of personal loans can I use to borrow $5,000?

Most people looking for a $5,000 loan will choose an unsecured personal loan. These loans are easier to get and you don't have to put up a car as security.

Secured personal loans typically require a new (or newish) car as security. While some lenders may offer you a lower rate (because the loan is lower risk to the lender), these days the lowest unsecured personal loan rates are often just as low.

How much does a $5,000 personal loan cost?

The exact cost of a $5,000 personal loan depends on:

• The length of the loan.
• The interest rate.
• The fees.

$5,000 personal loan cost examples

It's important to consider the different fees, interest rates and loan terms when you apply for a personal loan. As you can see, a 5 year loan term with a higher interest rate will give you lower monthly repayments, but you'll end up paying much more in fees and interest over the loan period.

These are just simplified examples that don't take your personal circumstances into account. Use a personal loan repayment calculator to figure out your own loan costs.

How do I compare $5,000 loans?

• Look at the rates and fees. A loan with a lower rate and fewer fees will save you money.
• Choose the right loan term. A personal loan with a 1-year term is usually cheaper than a 5-year loan because you pay less interest over a shorter time. But your monthly repayments will be higher. So the right loan term is about balancing your monthly and your overall costs.
• Look for a loan with features you need. Some personal loans allow you to make extra repayments without a fee, which helps you pay off the loan faster.
• Check the lender's eligibility criteria before you apply. Don't waste time (and hurt your credit score) applying for a $5,000 loan you're not eligible for. Make sure you meet the lender's criteria first.
• Get your credit score in good shape. The lowest rates and the best deals go to borrowers with excellent credit scores. Improve your credit score before applying for a loan.

Check your credit score for free through Finder

Can I borrow $5,000 if I have bad credit?

Borrowers with bad credit who need money quickly often turn to:

• Payday loans. Payday lenders offer fast approval and are only available up to $2,000. Some lenders may go as high as $5,000 - but it is not considered a payday loan.
• Bad credit personal loans. Some lenders specialise in lending to borrowers with bad credit or limited proof of income.

When borrowing as much as $5,000, short-term loans and bad credit loans are going to become very expensive. These loans have higher interest rates and hefty fees. This makes any loan expensive, but the more money you borrow the worse it gets.

Can I get a $5,000 personal loan with guaranteed approval?

Beware of lenders whose websites mention "guaranteed approval" for small loans. The truth is any regulated lender will perform some kind of check on your credit score and suitability as a borrower before lending you $5,000.

These lenders are often going to charge you very high interest rates and fees.

If a lender is truly promising you "a small personal loan with guaranteed approval" they are likely a scam. You can check ASIC's register to see if a lending business is appropriately licensed.

Which lenders offer $5,000 bad credit loans?

The following lenders offer loans up to $5,000 for bad credit applications. Be sure to compare lenders before applying:

Alternatives to a $5,000 personal loan

If a personal loan doesn't work for you and you'd rather avoid a pricey payday loan, you could consider one of the following:

• Credit card. If you have an existing credit card you might be able to get the credit limit raised to $5,000. You might already have a limit that high. This could be useful to cover a one-off purchase instead of a personal loan. Credit cards also offer interest-free periods. But after that, you'll be charged a higher interest rate compared to a personal loan. If you can't pay back the $5,000 purchase in a short time this will end up being quite expensive.
• Home loan top up. If you have a home loan and you've been making repayments on time, your lender may approve a top up to the home loan, allowing you to borrow slightly more against your equity and put it on your loan. Your home loan will have a lower rate than a personal loan. But keep in mind that a home loan is a much longer debt, so adding to it means you pay more in interest in the long run.
• No interest loans (NILs). While you can't get $5,000, eligible Australians on low incomes can qualify for no interest loans from community-led non-profit organisations. You don't get charged interest, but it's also not really a loan. You can only use the money for an approved expense, such as car repairs, medical expenses or an essential household item.

Why compare personal loans with Finder?

Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)

Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.

Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.

Frequently asked questions

• How do I apply for a $5,000 loan?

  Click "Go to Site" on Finder's comparison table to begin your applications. Most lenders have applications online, making it easier to access.

• What if I need a $5000 loan ASAP?

  Some lenders have a faster approval time than others and offer quick loans. While you may get the money faster, it's important to be aware that these loans may charge higher interest rates.

• Is it hard to get a $5,000 loan?

  If you have a steady income, a decent credit score and minimal outstanding debts then getting a $5,000 loan approved shouldn't be too difficult.

  Many lenders will approve much larger loans for creditworthy borrowers.

• What happens after I submit my application?

  This will differ between lenders. However, you will typically receive a notification on whether or not your application has been approved. The lender will also provide instructions for the next steps.

• Are my details secure?

  When you apply for a loan online, your details are securely transmitted over an encrypted connection. The majority of the sites you apply through use 128 bit SSL encryption to ensure your details are safe and secure.

• Can I get a $5,000 loan if I'm unemployed?

  You may be able to apply, but you'll need to be receiving some form of income to qualify. Lenders will look into whether you can afford to repay the loan. If you receive Centrelink payments, it shouldn't exceed 50% of your total income. You can read more about loans for unemployed applicants in our guide.

To make sure you get accurate and helpful information, this guide has been edited by Rebecca Pike as part of our fact-checking process.

Written by

Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise

Richard has written 553 Finder guides across topics including:

• Home loans
• Property
• Personal finance
• Money-saving tips