5K$ Bad Credit Loans On The North Eastern Seaboard

Today’s publication is long overdue as we have not sufficiently covered lending and borrowing on the North Eastern Seaboard of the United States. Today’s loans are all related directly because they are for 5K and they are all cash loans to be paid back over a period of months, not to be confused with payday loans or cash advances.

Another thing that is positive about these 5K loans is that none of them carried over-the-top high interest rates. You can see this in the five loan data tables below (Update: The borrower in Boston declined all loan offers as he wanted a lower APR than 11%). This may turn out to be a fairly long publication so you may want to print it out to read it completely, or bookmark the page to finish reading at another time.

So the five states we are covering had applicants and borrowers who all agreed to share a portion of the information and the data on their borrowing experience. Going from North to South down the Eastern Coast of the USA, we are doing a loan for 5K in Maine, 5K in Vermont, 5K in New Hampshire, 5k in Massachusetts, and 5k in Connecticut. The reasons for these $5000 loans were (respectively);

• vehicle repair
• paying off payday loans
• final student loan debt payment
• medical bills
• paying off credit card bills

Besides the obvious comparisons with these loans, being their locations and the amount being 5K, there is one other commonality to these approved *(see update note above) deals. All five of the borrowers/applicants in these five states had poor credit ratings at the time of application.

We have categorized the FICO scores in order of FICO 600, FICO 610, FICO 620, FICO 630, and finally FICO 640. All of these borrowers were chosen for this case study based on the FICO scores and their logistical placement within the Continental United States. All of these applicants were chosen for another reason. The reason being that these credit scores were true FICO scores that were calculated properly as per the Fair Isaac credit scoring model, meaning that data from all three of the three major credit bureaus were included in the calculation – TransUnion, Equifax, and Experian. Without all of the major credit scoring agencies tallied in the math you can’t get an accurate overall score, and consumers need to know this so that they don’t assume that just one reporting agency is giving them the score that the banks will be using to make a judgment on the qualification of a loan request.

All of these applicants were not eligible for payday loans or cash advances because they were borrowing $5000 which is far and above what any short-term, high interest lenders will approve. PDL and cash advance stores are not even legally allowed to lend $5000 to their customers living and working in Maine, Vermont, New Hampshire, Massachusetts, or Connecticut. Furthermore, because of the low credit scores these borrowers had they were not able to be approved by their local bank branches, putting them in a position where it was seemingly out of the question that they would be approved anywhere for credit.

Ultimately, all of these borrowers resorted to searching online for willing lenders who would give them a second chance, and all of them used the three main search engines to conduct their research (Google, Yahoo!, and Bing). Once they got online they realized how difficult it is to get a personal loan approved for $5000, and even more difficult to sort out which websites actually provided loans for people with bad credit, who were conducting legal businesses, and were not just advertising hubs. As you may well know already, you can spend hours spinning around in circles on the Internet when you are searching for loans. We try to lift some of the confusion for our readers by publishing real-life occurrences of borrowers being approved by lenders (private and institutionalized).

None of these people have ever declared bankruptcy and none of these borrowers have sufficient home equity, so a second mortgage was not in the picture at all. All of them have the same financial problems that most people do, whereby $5000 could remove much of the stress in their life, and give them a second chance.

You can’t honestly say that any of these borrowers were in a worst case scenario because they were all employed at the time of application. It’s hard to see people strained under debt because of a medical emergency, like one of the borrowers in this case study, and unfortunately we see this reason for borrowing all the time. Furthermore, none of these applicants were looking for a large debt consolidation – 5k max.

$5K Bad Credit Personal Loan in Maine

Starting in Portland, Maine we have a $5000 bad credit loan for an applicant who needed to have his vehicle repaired. This is of course another common reason for people applying for fast cash loans. Not having a vehicle that is in good running order can be truly an emergency situation. You need to have upward mobility in order to get to work, look after family, and function in any Western society these days. You can use public transit, and many people do who lived in urban centers, but in most cases, employees are living a substantial distance from their workplace. This is the case here in Portland.

With all of these loan examples we’re going to mention and point out the bank branches that declined the borrower. This is not in any way an effort to shame or discredit the particular financial establishment(s), but just to point out how difficult it is to get credit these days when you have a low credit score. This borrower, who was in need of some fast cash to repair their vehicle and pay off some utility bills, does all of his personal banking with the Bank of America branch in Portland, Maine, which is located at the corner of Free Street and Union Street. This applicant also doesn’t make a lot of money per month, with only a net income of $2700, and after rent, utilities, and car payments, he has very little left in which to make a personal loan payment with. In other words, his DTI was fairly high. He was going to have to find a high risk lender if he was going to get approved at all.

He did try to find a conventional bank somewhere else in Portland that would approve him, and he tried at the Maine Bank and Trust (AKA – People’s Bank), Key Bank, Camden National Bank on Milk Street. No joy with any of these banks either.

This loan was approved at a very low rate when you consider the applicant’s credit score. He was approved at 6% over three months for $5000 in principal, which came to a measly $50 interest. This kind of short-term loan is virtually unheard of these days – anywhere, and this lender has been very busy managing all the applications that come through. One of the reasons this loan did go through was because the borrower had $3500 in back-pay coming to him shortly after the date of application, and he had a letter of intent from his employer of the fact. So yes, most applicants with poor credit scores wouldn’t be eligible for a loan at this rate.

The loan payments came to $1660 every month. You can see the full data table below showing this borrower’s basic loan agreement terms, and we should note that this lender also lives in the State of Maine and is based out of Westbrook (just north of Portland International Jetport off of Interstate 95).

$5K Bad Credit Personal in Vermont

The next loan in this case study is also a personal loan and not a business loan. The borrower lives in Burlington, Vermont and required a 5K loan to pay off multiple payday loan debts. Also another common reason for requiring a conventional style installment payment loan. Too many times we see visitors to our site in this situation, where they have overextended themselves with some of the most expensive lending products in the financial marketplace. You want to avoid payday loans if you can (I am guessing that you know this already).

In this case the borrower requested an interest rate below 10% and was willing to make payments of $855 a month for six months. Luckily for this person she managed to get a 9% APR on the $5000. Considering a FICO score of only 610 this borrower was extremely happy to have all of her payday loans cleared away, and happy to have one monthly payment for a short term.

This lender has solid employment working at the Fletcher Free Library close to City Hall Park in Burlington, Vermont. She has been working there for 4 years in total, and has never been laid off, or even had the threat of a layoff in her time working there.

She showed the lender her pay stubs, her bank statements from the last two months, and her Vermont State Driver’s License for photo ID, and she had the money deposited into her account within three days of her application.

This personal loan happened fairly quickly after the initial meeting between the lender and borrower. The lender is also based out of Burlington.

The bank that she does business with, that turned her down for any credit (including a small overdraft) was the Citizens Bank of Burlington at 148 College Street. They were professional and polite in denying her credit, but nevertheless, under their policies and guidelines their loan officer had to decline the loan.

Six months later she managed to have all of her debts paid off, but she had to live like a church mouse to pull it off. No extra movies on the weekends, no expensive parties, no new toys, no shopping, and no gambling – nothing that was costly could be considered. She had to stick to finding entertaining activities that were 100% free.

$5K Bad Credit Personal in New Hampshire

Our third loan in this case study takes us to Concord, New Hampshire where a young man in his mid-20’s was trying to get rid of an expensive student loan that he still had hanging over his head. The interest rate he was paying on this student loan was way more than it should’ve been, coming in at 10.5%.

He wanted to get a different loan to pay off this student loan and be left with a much lower APR for the duration. He was extremely anxious to get going and find a lender through the site and managed to have three different offers come in for personal loans all between $4000 and $5000. In his loan request he asked for a longer term than the first two applicants, being nine months. He also requested an APR that was lower than 10%. Once again, it’s pretty difficult to find a bad credit loan for less than 12% or 13%, so this was a challenge – to say the least.

This applicant had a FICO score of 620 at the time of application, which he had worked hard to resurrect from what it used to be a year prior (580). He got involved personally in removing some old and erroneous black marks against his credit score with two of the main credit scoring agencies (TransUnion and Equifax).

This applicant doesn’t earn a great deal of money per month, as he works full-time at the Shell Truck Stop over on Loudon Road down the Franklin Pierce Highway from the corner of Hazen Drive and Airport Road. One thing that he does have going for him is that he’s getting some help from his fiancée because she works full-time as an administrative assistant for a law firm in downtown Concord.

This borrower was turned down for more credit with his bank – the Centrix Bank and Trust of New Hampshire, on Main Street. He tried to talk his way into the $5000 loan and bent over backwards trying to satisfy his loan officer that their investment with him would be sound and that he would pay back all the money to the last penny. Unfortunately, loan officers don’t have that personal leeway anymore in today’s banking establishments. It simply a mathematics game.

By using our pre-application system here at FUSA this applicant made a detailed loan request for $5000 which was picked up quickly by a couple of lenders that legally do business in the State of New Hampshire. In the end this applicant was able to be approved with an APR of 7%, with a term of six months.

$5K Bad Credit Personal in Connecticut

Our fourth 5K loan is Hartford, Connecticut. The borrower here also has a bad credit score with the FICO rating of 630. This is also a score low enough that banks will say no to the applicant. In this case the bank that said no to our applicant was the First Niagara Bank over on Trumbull Street located in the XL Center in downtown Hartford. Our applicant knew that she was likely to be turned down from her bank branch, but smartly chose to at least try there first.

In her situation, she needed to pay off some medical bills that she incurred almost 8 months earlier. She had fallen down and an enbankment while hiking the at the Rocky Neck State Park in East Lyme, Connecticut. The whole ordeal was extremely painful and left her with permanent damage to her lower back. This has affected everything in her life.

She did have some health insurance with United Healthcare Insurance Company located on Asylum Street. Unfortunately for her though, she was not covered for all of her treatments because she could only afford the minimal insurance plan. She ended up being in the arrears of $8000 for her total care – not to mention some of the medication costs she has been dealing with. She had to pay for her prescription Demerol because that wasn’t covered in her health insurance plan.

Her parents managed to help pay some of her medical expenses to the tune of $3500, but that put her $4500 shy of paying off the doctors and the hospital. Her primary care was at the Hospital of Central Connecticut on Meridian Avenue which is in Southington, Connecticut if you are not familiar with the area.

The lender that she ended up choosing offered her an 8% APR based over a 12 month term with biweekly payments of $435 per. She managed to pay off all of her debts and stopped the phone from ringing. Ever since then she has been working tirelessly in rehab to regain more and more strength in her back and her core.

$5K Bad Credit Personal in Massachusetts

Our last loan takes place in Massachusetts and of course we chose Boston. In actuality this applicant was declined for their loan, and we thought we should include this particular example to show why communication is so important when you’re trying to do business with any kind of lender. This borrower was a man in his mid-30s and living in Cambridge, which is close enough to Boston central for this example.

He works in delivery services for FedEx and travels all through the Eastern Seaboard but most of his focus for delivery is in areas like Cambridge, Watertown, Waltham, Somerville, Medford, Malden, Chelsea, Brookline, Arlington, Newton, and Melrose. This applicant needed to borrow $5000 to pay off existing credit card bills that were piling up and causing him a lot of stress in regards to collection agencies calling his home phone (landline) and his cell phone.

He wanted to borrow $5000 over a 15 month term, with an interest rate around 10% at the highest. As it turned out he couldn’t find a lender that will lend him the money for anything less than 11% APR. Why? Because he has in effect an almost impossible DTI of .70. He spends almost all of his paycheck on looking after rent, his wife, and his five children. He also has other personal debts that restrict him from finding any further credit.

UPDATE: In this case he realized that paying 11% on another $5000 would be counterproductive considering his other debt and financial responsibilities that he was dealing with. He tried really hard to get the APR down below 7%, as in some of the other borrowers in this publication, but no dice – the lenders couldn’t deal with his high DTI numbers, and recent payment histories with his creditors of late.

Unfortunately, he couldn’t get approved with his bank either which was Chase Bank on Rowes Wharf downtown Boston. The reason I say was, is that after he was declined for this $5000 credit in the form of a short-term personal loan, he moved all of his accounts to the First Republic Bank over on Federal Street. We don’t know why he chose to do this, but our gut instinct is that he was just angry about being declined.

In the end of this, as it played out, this borrower’s wife had to go find a job so that they could supplement their household income, so they could manage with their finances. His in-laws were kind enough to help with day care and some of the traveling issues that they have to deal with day-to-day, so this was a huge relief on the family pocketbook. We don’t know how they ended up going forward, but we sure hope that they’re doing all right now.

That ends our case study of $5000 loans on the eastern seaboard of the US. We will be revisiting all of these States with other lending products and consumer situations. If you are in need of a personal loan we encourage you to fill out the pre-application form below. If there are any lenders legally operating in your neck of the woods, they can contact you using the e-mail you submit. Remember to read our privacy policy so you understand that your e-mail is never used to conduct marketing campaigns, and your e-mail is never shared with any other company or entity. Lenders are only allowed to have a limited time of access to your e-mail, and only to discuss a possible lending solution for you.