How to get $2,000 Personal Loans for Good and Bad Credit

If you are looking for a personal loan you may think you have to go to your bank and see if they can help you. While that is usually the best way to get the best interest rate, it isn’t your only option. A decent credit score is normally required to get a loan with the bank, but sometimes just having a good relationship with your financial institution can make a big difference as well. If this is something that isn’t an option for you, there are plenty of alternative lenders available to help you get the money that you need, especially if we aren’t talking about an excessive amount of money. A loan amount of around $2000, is a lot more attainable than $50,000. This is especially the case if you are looking at high interest rates as well. Whether you are looking for good credit loans or bad credit loans, the process is relatively the same.

Things to Consider for a $2000 Loan Approval

While a $2000 loan is a relatively small amount, there are still requirements that you need to meet in order to receive the loan. You also need to consider the fact that these factors will directly affect the amount of interest you will pay monthly on that loan, as well as how long it will take you to pay that loan off. Before you start applying, it is important to verify a few things.

1. Why do you need the money?

While having credit lines on your credit report is important, it is also important to keep your credit lines in check so you don’t have too many and are unable to pay them back. What is your reasoning for getting the loan? What do you need the money for? How long will it take you to pay it back? Can you make the monthly payments? Is the loan open, meaning you can put money on the principle without any penalties. These are all important things to know.

2. What is Your Credit Score?

Your credit score makes a big difference in how much you can get approved for as well as what interest rate you can receive with different lenders. Having a credit score lower than 650 makes it a bit more difficult to go through a bank or credit union and you are more likely to get approved through an online lender. In order to decide where you are going to apply, it is a good idea to check out your credit score before you start. You can do this though any of your major banking apps like Scotiabank, or through online free credit check services such as Credit Karma and Borrowell. This helps to avoid applying at multiple lenders. When considering your credit score, it is important to consider that you have two different credit scores through Equifax and Transunion. You can also check your credit score through Equifax and Transunion directly, similar to the process of Credit Karma and Borrowell.

3. Debt to Income Ratio

Another thing to consider is your debt to income ratio. This ratio compares how much you pay per month to how much you earn per month. While your debt to income ratio is on your credit report and does reflect in your credit score, lenders also look at it separately. Most lenders want to see your debt to income ratio under 40% to be confident that you are able to pay your bills. Some lenders will allow a debt to income ratio of 50% but that usually is more difficult to obtain.

While your debt to income ratio is based on your income versus bills, only certain bill are included in this such as:

• Credit card minimum payments
• Line of credit minimum payments
• Loan Payments
• Car Loan Payments
• Mortgage Payments
• Rent Payments

Other household bills and expenses aren’t included in your debt to income ratio which is part of the reason the ratio is the way it is.

The Pros and Cons of a $2000 Personal Loan

On the scale of different sizes of personal loans you could get, a $2000 loan is relatively low. While there could be multiple reasons for getting this loan, it generally isn’t bad to get a loan unless you can’t pay it back.

Pros

Some good things regarding a $2000 personal loan are that it will increase your credit score as long as you make your payments every month. Those monthly payments get reported to the credit bureaus and will increase your score no matter what your credit score currently is.

The second thing is that this amount is relatively low and easy to pay back. There won’t be a long term on the loan and it will likely have extremely low monthly payments. Most personal loans of any size are also open, meaning that you can put money on the principal at any time, paying the loan off even faster.

Cons

While a personal loan of any size is a great way to increase your credit score, you can also decrease it a lot by missing payments. Unlike credit cards and line of credits, the amount you owe doesn’t matter. What matters is if you make your payments. Personal loans of any size are considered to be installment credit which is one of the most powerful forms of credit. Missing payments and defaulting on a personal loan dings your credit score a lot and makes it more difficult for you to get different credit tradelines in the future.

How A $2000 Personal Loan Works

A personal loan in itself is pretty simple. Once you have been approved for the loan and sign the contract, the loan will be deposited into your bank account and the monthly payments will then be taken out of your account on the agreed upon date. This payment will then come out until the loan is paid off. Most personal loans allow you to make payments at any time without penalty as well. There are two different types of personal loans available.

The first is an unsecured loan. Unsecured personal loans are cash loans that are given to you without asking for collateral in return. Generally, unsecured loans have a slightly higher interest rate, but they are also more powerful on your credit report. This is because the lender is essentially trusting you to pay them back. In most cases, a $2000 loan would likely be an unsecured loan.

The second type of personal loan is a secured loan. Some examples of this would be a:

• Car Loan
• Mortgage
• Home Equity Loan

This means that if you do not make the payments, the bank can seize the item in order to get their money back. Unsecured loans generally have lower interest rates and can be easier to obtain at any credit level because there is collateral involved.

Reasons for Getting a $2000 Personal Loan

There are so many different reasons why you may want to get a $2000 personal loan, and the lender usually asks for one. Here are some of the most common ones.

1. Debt Consolidation - Credit card interest can be very expensive. While $2000 isn’t a lot, it can be much easier to pay off credit card debt or other debt with a lower interest rate loan and fixed payments.
2. Emergency Expenses - While emergencies don’t happen all the time, you don’t always have the exact amount of money that you need when you need it. A small personal loan can help with that
3. Alternative to Payday Loans - Payday loans have exorbitant interest rates and can often be a difficult situation to get out of. Personal loans have small affordable payments that don’t set you back as much when you are trying to catch up on your debt.
4. Large Purchases - Large purchases like furniture or appliances can often be very difficult to come up with right away. Given the flexibility to pay for them over time can make a large difference.

$2000 Guaranteed Loan

There are some lenders out there that advertise guaranteed loans. These can be a bit unnerving because most lenders want to verify your credit history before they risk giving you money. IF you are worried about whether you will be approved due to your credit score and credit history, most alternative lenders are much more lenient with the banks. When you go with a lender that checks your credit score, most then report your payments to the credit bureau so you can build your credit score. This makes getting a loan next time easier since you then have more positive history on your report. A guaranteed loan leaves more room for error and can seem almost too good to be true.

How To Get A $2000 Loan Quickly

When you are looking at getting money quickly, many people think getting a payday loan is the way to go. While they are relatively fast, they also have extraordinarily high interest rates, some over 100% or higher. This makes it too easy to get stuck in the payday loan cycle and creates an even bigger circle of debt.

Getting a personal loan through banks or credit unions can often take a lot longer than you like and, even though the interest rates are good, especially if you have good credit. You can’t always wait that long. That is where alternative lenders/online lenders come in. With most alternative lenders like Spring Financial, you can apply online in just a few minutes and get a personal loan in just a few hours approval. This is very convenient for those who need money fast, whether you have a good or bad credit score.

Typical Credit Score Needed for A $2000 Loan

When it comes to credit scores, while they play a big part when it comes to getting a personal loan, there are other factors as well. This is why your credit score doesn’t need to be as high as you think to get a $2000 personal loan.

Credit scores are broken down into a few different categories:

• Excellent credit - 800+
• Very Good credit - 740-799
• Good credit - 670-739
• Fair credit - 580-669
• Poor credit - 300-579

Many people think that to get a personal loan of even $2000, especially an unsecured personal loan, there is a minimum credit score requirement of 700+, but that isn’t necessarily the case. There are plenty of personal loan lenders out there, not just the traditional lenders. In order to get approved by a bank or credit union, they like you to have a minimum credit score of at least 660 but sometimes it can be lower depending on other factors. Online lenders will often approve people with credit in the 400’s or lower. While there is no guarantee that you will get approved by any lender, it is possible to get a $2000 personal loan with poor credit and not having to resort to a payday loan.

Average Monthly Payment on a $2000 Loan

It can be pretty difficult to pinpoint exactly how much a $2000 loan will cost monthly. You have to consider what interest rate you have as well as the term of the loan. In general though, the monthly payments can realistically range anywhere from $25 to $150, sometimes even as high as $200. This really depends on if you end up with good credit or bad credit personal loans. Overall though, the shorter the term of the loan the higher the payment, same goes with interest rates. Here are a few examples:

$2000 Loans Without A Credit Check

While it can seem much less intimidating to get a personal loan without getting a credit check, these loans usually have extremely high interest rates. This is mostly because lenders will likely assume that you have bad credit if you are trying to get a loan without a credit check. Because these lenders don’t check your credit, there are some impersonators out there so you want to verify that you are getting the money from a legitimate source. Even though these lenders will not check your credit score, they will want to see bank statements and pay stubs to verify that you can afford to pay the loan back. Another downside to a no credit check loan is that they often don’t report your payments to the credit bureaus. These will then have no impact on your credit score and make no difference towards the next time you apply for a loan or tradeline.

Does Spring Financial Offer a $2000 Loan?

At Spring Financial, we offer personal loans ranging from $500 to $35,000. Whether you have good credit or bad credit, you can apply online in just 3 minutes and even get the money in just a few hours after your approval. The money will then be deposited into your account through e-transfer or direct deposit. All of our loans are open, meaning you can pay them off whenever you like with no penalties. If you are in the market for a $2000 loan, or any amount between $500 and $35,000, apply online today or give us a call at 1-888 -781-8439.