3000 Secured Loan

There are many people I work with who are confused by the terms ‘secured’ vs ‘unsecured’ when it comes to loans.  As such, I want to go over these definitions as to how they apply to those looking to take out a 3000 secured loan (yes, get a cup of coffee unless you are a financial dork like me – and I promise that I will try to make this as quick and painless as possible.  Yes, understanding this can help you a great deal, so let’s see if we can get through this in a few minutes).

 What is the difference between 3000 Secured Loans and Unsecured Loans?

First, let’s look at the definitions of both ‘secured’ and ‘unsecured’:

  • Secured Loan – a loan that is back by capital pledged to support a loan in case of payee default.  This jargon essentially means this: you have to sign over your rights to an asset (home, car, stocks, or anything that has value and can be sold easily) to the lender.  If you can’t pay your loan back then they will assume ownership of what used to be your asset, sell it, and try to get as much money so they can pay off your loan.  Yes, this doesn’t sound good if you are the person pledging the asset, but it’s actually very common in the loan world, and you have no issues as long as you pay the loan back in time. Read more »

3000 Personal Loan Options

When it comes to taking out a 3000 personal loan, there are really only a few good options.  Below we will discuss three of the options we consider to be the ‘best’: personal bank loans, peer-to-peer loans, and borrowing money directly from another person (i.e. from a family member or a friend).

3000 Personal Loans from a Bank

Bank loans for $3000 are actually not that easy to find (unless they are for a car).  Simply put, not all the banks offer personal loans for 3000.  Just take a quick look at the major banks in the United States – Chase, Bank of America, and Wells Fargo – and you will notice that only Well Fargo offers personal loans for this amount.  The other banks only offer such loans for vehicles and other such purchases.

As you can see, the minimum you will find a personal loan for is $3K – but not all banks and financial institutions offer them, and having a relationship with the bank will go a long way if this is the loan you need and are looking for.

 

Peer-to-Peer Loans

One great alternative to bank loans are peer-to-peer loans.  Basically, these are loans that you find online (Prosper.com is one example) that cut out the bank from the lending equation.  Instead, you are borrowing directly from normal people who simply create an account with the company and then choose which loans they want to extend.

One advantage of such loans is that you have access to 3000 personal loans for any reason – if you need it to start a business, or consolidate debt, or basically anything, you can get a loan.  You just need to explain what you want the loan for and how you are going to pay it back.

 

Borrowing Money From Family Members or Friends

A third option you have when it comes to these types of loans is borrowing from someone you know.  While this may sound like the best option, there are many reasons why you would want to look at either a bank or peer-to-peer loan first:

  1. Borrowing money and entering any type of financial transaction with someone close to you always has repercussions – and most of the time those end up being negative.
  2. Most people do not write out a contract before entering the transaction, and one of the parties end up forgetting or becoming confused on the original terms discussed (if they were discussed at all).

Bottom line – if you are going to borrow money from someone you know, make sure you have all the details outlined, including what happens in case you default on the loan.  This may sound weird and may be awkward, but it’s a necessary step if you don’t want to hurt your relationship.  Essentially, the only time I recommend taking out such a loan is when you are suffering from bad credit and don’t have any other options.

The Truth About The $3000 Payday Loan

I get a lot of questions regarding the $3000 payday loan.  Many people search (in vain btw) for such a loan, only to find that in reality a single payday loan for $3000 does not really exist.  The fact is, most payday lenders will not offer more than $1,500 – and on average the maximum you can generally borrow from such a lender is around $1,000.

So why is this the case, and why do people still advertise 3000 payday loans?  First off, let’s look at why loans for such an amount are non-existent.   In order to understand this, it’s important to understand the financial requirements for taking out a payday loan. Read more »

3000 Loan with No Credit Check

Finding a 3000 loan with no credit check is not an easy task – mainly because traditional banks and other lending institutions (credit unions, etc.) will never make a personal loan without a credit check.  Doing so is simply too risky and would never be classified as a good use of their capital.

So what can you do if you want a no credit check 3000 loan?  While your options are limited, you do still have options:

 

1) Payday / Title / Other 3000 Loans that do not require a credit check:

Yes, it’s true that payday loans do not require a credit check, but that is not necessarily a good thing – it forces the lender to charge much higher interest rates and fees, which makes a $3000 loan without a credit check very, very expensive – it will cost you almost $500 (or approximately 450% APR) to take out such a loan (and in fact you will need to take out at least two separate loans since the maximum amount most lenders offer is $1,500).  In addition, you will need to pay the loan back before or on your next paycheck, which for a vast majority of American’s would be a monumental task as not many people even get $3500 in one paycheck.

Bottom Line – try to stay away from payday loans, especially if you need more than a few hundred dollars.  The interest rates and fees will kill you, and in all reality you will most likely end up needing to roll over or default on the loan and put your financial situation in very bad shape.

 

2) Borrowing from family or friends.  Unless your friend is a lender, he/she probably won’t even have the ability to check your credit score.  However, be aware of the potential issues with a loan from a family or friend – if you don’t have everything spelled out beforehand, and if you have any issues paying back the loan you can end up hurting yourself and your relationship in the process.

 

Summary:

In all reality, a 3000 loan no credit check does not exist albeit a loan from a family member or friend.  Even the payday loan option is a stretch, as the max you can usually borrow is $1,500.  Your best bet – find a way to repair your credit score and try to find a more traditional form of a loan.  There are banks (such as Well Fargo) that offer personal loans for as little as $3,000, but you will need to be able to pass a credit check.

If you are simply too nervous to have someone check your credit, or if you want to repair your credit, then you can start by checking your credit score/history for free.  You are entitled to one free report from each credit bureau each year, and that’s a good place to start.  However, it’s best if you find your actual score – and you can do so for free at several sites online.

3000 Loan with Bad Credit

If you are looking for a 3000 loan with bad credit, your options are going to be limited.  Of course you can always try to repair your credit before you apply for the loan, but if you need the loan quickly then this will not be an option.

Below we will look at your different options, with the goal to help you understand how you can go about securing a 3000 bad credit loan – and finding one that won’t cost you an arm and a leg in the process. As such, we list your options below in order of how much we recommend them (i.e. the most highly recommended number 1, least recommended at the end).

 

Option 1 – Personal Loan from a Bank or Credit Union

As always, we recommend first and foremost that you try to find a regular, personal loan.  Not only are your costs going to be much lower than other options, but you will also have the most time to pay the loan back.  However, there is one problem when you have bad credit – banks won’t typically lend to you.  Aside from the subprime fiasco, banks are typically pretty stringent with their lending standards, so if you want to be able to secure a loan from them, there are two different things you are going to need to do:

  1. Secure the loan with an asset.  The best way to help the bank look past your poor credit history / score is by offering some collateral to back the loan.  By putting up some collateral you are offering to secure the loan with that asset – essentially this means that if you default on the loan the bank has the rights to take that asset from you.   They can then sell the asset to recover their losses on the loans.  In addition, you won’t want to lose your asset, so the bank feels more secure in extending the loan.
  2. Finding a third party co-signer.  Probably the easiest way to make up for your bad credit is to find someone with good credit who is willing to sign on the dotted line with you.  How this works is they sign on the loan document next to you, stating that if you fail to pay back the loan they will step in and be responsible for the payments.  The bank then has the right to go after both you and the co-signer in case of default.  Of course, you will want to find someone who has a credit score above 640, but a credit score above 760 is ideal.

 

Option 2 – Borrow money from Friends or Family

We don’t put this as the first option primarily due to the complications involved in borrowing money from those you know:

  1. It can be uncomfortable / awkward
  2. You have to find someone who has the money and is willing to lend it to you
  3. A default on your part can ruin the relationship

However, if you know someone who can lend you the money and you KNOW you can pay it back, then this is a much better option than taking out payday loans or other bad credit loans for 3000.

If you do decide to go this route, MAKE SURE YOU FOLLOW THE BELOW GUIDELINES:

  • Create a WRITTEN agreement with the terms of the loan (when due, interest rates, what happens in case of default, etc.), and have all parties sign and keep copies.
  • Come up with a WRITTEN plan for payback
  • Make sure you can pay the loan back

This will be the cheapest 3000 loan with credit that you can get, but if you don’t write everything down and make sure all parties understand the terms you can end up making enemies out of good friends very quickly.

 

Option 3 – Payday loan (actually more than 1 payday loan)

This is BY FAR the least recommended option, and should only be used in extreme circumstances.  This will be the most expensive option by far, and is not recommended for dollar amounts greater than $1,500 or 35% of your monthly income.  However, there are no credit checks required, and as such you can have bad credit and qualify for the loan(s).

There are several problems with such loans, especially when it comes to higher amounts, such as a $3000 loan for people with bad credit:

  1. You will need to actually apply / take out more than 1 payday loan, as most companies will only offer a maximum of $1500 per loan.  In addition, some companies will not offer you a loan if you already have another payday loan currently.
  2. Interest rates and fees are very high.  On average, you can expect to pay $15 per $100 borrowed, so that comes to about $450 if you need to borrow $3000.
  3. You will have to pay the loan back by your next paycheck, so unless you have the capability to pay back $3,450 in the next few weeks you won’t be able to take out the loan.

Obviously, you can see that this is not a great option and should be avoided unless you are in a real emergency.

 

Option 4 – Title Loan

Title loans are very similar to payday loans, with one exception – you secure the loan with the title to your vehicle.  If you don’t pay the loan back then you lose your car, and they won’t be bashful when it comes to collection times.  The one advantage you have over a payday loan is that you can take out more than the $1,500 – the actual amount will depend on the amount of equity you have in your vehicle.

However, I don’t like these loans at all.  The rates are just as high as payday loans, they are also very short-term like payday loans, but you can lose your car if anything goes wrong – making a bad financial situation even worse.

 

Options that are out of the question:

-Peer to Peer lending organizations (they typically require a score of 640 or above)

-Unsecured personal loan for 3000.