Personal Finance

Recommendations for Low Interest Loans

  • Last Updated:
  • Mar 18th, 2019 10:41 pm
[OP]
Newbie
Mar 11, 2019
5 posts

Recommendations for Low Interest Loans

Looking to borrow $5000.
Not employed right now and bank is not an option.
700+ credit score with no adverse records.
9 replies
Deal Addict
Aug 20, 2007
1827 posts
584 upvotes
Kitchener
Good Luck. Considering your unemployed, your going to have a difficult time just finding a lender, the interest rate is a different story.
Moderator
User avatar
May 8, 2009
8908 posts
4660 upvotes
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Questions...
  1. do you owe $5k already?
  2. Bank isn't an option due to your current employment status, or because you have other reasons for avoiding banks?
  3. How long will you need to pay back the $5k?
  4. Why are you unemployed? How long will it take you to find a job if you had to guess?
  5. Does your household have income?
  6. Do you have credit cards? They often send out balance transfers to existing cardholders
  7. Can you reduce or eliminate your cost of living? Get rid of a car, move in with relatives, switch to a prepaid cellphone carrier, cancel bank accounts that have monthly fees, etc.?

Because:
  1. cheapest way to borrow $5k is a credit card balance transfer. It's relatively easy to get $5k+ CL, but the card app will ask for employment or even household income. Second best is BT offers to existing cardholders
  2. lines of credit are great for a rainy day, but OP you've hit a storm so if you don't have a line of credit yet (which you probably don't, hence this thread), get one after you receive your first paycheck on your next job
  3. Cash advances on credit cards are still cheaper than payday advance lenders. You should never resort to payday advance loans.
  4. The payday loan sharks are lurking around the corner. They're beyond a last resort, but if you must...
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Deal Addict
May 15, 2013
1461 posts
282 upvotes
Montreal
The sad reality is that you need to have available credit (credit card, insecured line of credit, etc, etc) when you don't need it to use when you'd need it and not qualify for it.
Sr. Member
User avatar
Mar 9, 2012
650 posts
244 upvotes
You'd have to lie on an online credit card application to get that... however I'm not sure if you'll get $5,000.
[OP]
Newbie
Mar 11, 2019
5 posts
titaniumtux wrote:
Mar 12th, 2019 10:17 pm
Questions...
  1. do you owe $5k already?
    No I am going to study professional courses over 3 months in Toronto. Expecting deficit depending on major expenses like rents & minor expenses like flight, new small cooking appliances due to move in etc. I led a simple life with money spent on Rent & food. Never got anything on credit. Only used credit card because of cashback+buyer protection.
  2. Bank isn't an option due to your current employment status, or because you have other reasons for avoiding banks?
    Visited banks but they need contract letter & you must have passed the probation period. Issue is I recently switched to a better job but it was temporary.
    Again as I notified my study plan they switched me to on call basis. So I don't have any fixed hrs or a regular pay stub to prove income.Technically I am unemployed as I have not got much shift in the last month
  3. How long will you need to pay back the $5k?
    $5k will be my reserve. If I exceed my budget at the end of 3 months of study+travel then I will dip into that.
    Rather than panicking at the end of 3 months. Once I get a job I will payback in full since I wont need them or at least make the monthly payments to keep my credit score clean.
    Till I get another job it will be my emergency fund.
  4. Why are you unemployed? How long will it take you to find a job if you had to guess?
    Study 2-3 months--> Look for jobs & settle in 4th month --> 5th-6th month Get a Job -> 7th month Payback in full or continue making monthly payments depending on how I have used from that reserve.
    Now if there is an option that my loan will only be sanctioned in 3rd month then we are looking at 3-7 = 4 months which I when will be using the loan money to service the monthly payments of the loan itself.
    Reason being I will pay 100$-200$ in monthly payments with loan but without loan I will be bankrupt in the sense I cant make future payments especially Rent & not because I owe a lot to my creditors.
  5. Does your household have income?
    0
  6. Do you have credit cards? They often send out balance transfers to existing cardholders
    Wouldn't that lead to a high credit utilization ratio which in turn will affect my credit score. I do have $5k in credit cards which I have paid in full.
  7. Can you reduce or eliminate your cost of living? Get rid of a car, move in with relatives, switch to a prepaid cellphone carrier, cancel bank accounts that have monthly fees, etc.?
    Like I said I pay rent + food & my money is gone.
    I dont need a switch as from day 1 I already took those measures.
Finally, I need $5K so that after my study period I can rent a place. That will enable me to look for jobs & use the loan money to service the monthly payments.
Once I get a job I will either pay my loan in full or else be capable to service the monthly payments. This is the plan, feel free to make any other comments.

Because:
  1. cheapest way to borrow $5k is a credit card balance transfer. It's relatively easy to get $5k+ CL, but the card app will ask for employment or even household income. Second best is BT offers to existing cardholders
  2. lines of credit are great for a rainy day, but OP you've hit a storm so if you don't have a line of credit yet (which you probably don't, hence this thread), get one after you receive your first paycheck on your next job
  3. Cash advances on credit cards are still cheaper than payday advance lenders. You should never resort to payday advance loans.
  4. The payday loan sharks are lurking around the corner. They're beyond a last resort, but if you must...

By the way:-
1.what about borrowell loans ?
2. What interest do major banks charge for personal loans or student line of credit if I am eligible ?
3. I saw a MBNA % balance transfer credit card but how does it work ?
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May 8, 2009
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SignUpItsFree wrote:
Mar 13th, 2019 7:36 pm

By the way:-
1.what about borrowell loans ?
2. What interest do major banks charge for personal loans or student line of credit if I am eligible ?
3. I saw a MBNA % balance transfer credit card but how does it work ?
  1. not sure about Borrowell loans. Maybe best to read into it and figure out if it's worthwhile to you
  2. ~9-13%
  3. Did you read the MBNA threads? Get a card with BT offer, schedule a BT to chq account, do minimum payments until end of promo period, then pay off in full
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[OP]
Newbie
Mar 11, 2019
5 posts
titaniumtux wrote:
Mar 13th, 2019 9:17 pm
  1. not sure about Borrowell loans. Maybe best to read into it and figure out if it's worthwhile to you
  2. ~9-13%
  3. Did you read the MBNA threads? Get a card with BT offer, schedule a BT to chq account, do minimum payments until end of promo period, then pay off in full
Thanks I checked the them.
mbna-cards-bt-promos-2210803/

My question is - are there any restrictions on who can apply ?
For example to apply for university, you have to work or study there, etc.

Last thing what credit score Transunion or Equifax is needed for MBNA ?
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User avatar
May 8, 2009
8908 posts
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SignUpItsFree wrote:
Mar 18th, 2019 9:54 pm
Thanks I checked the them.
mbna-cards-bt-promos-2210803/

My question is - are there any restrictions on who can apply ?
For example to apply for university, you have to work or study there, etc.

Last thing what credit score Transunion or Equifax is needed for MBNA ?
  1. apply for any MBNA card, even an affinity card of a school that you have never been to
  2. Afaik 650 at bureaus min score, but I could be wrong
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