Note that there may be plenty of advertisements from online lenders touting unsecured financing deals without any collateral needed or minimal faxing etc. Usually, the approval clause is for smaller amounts up to $1500. So if you intend to borrow $5000 dollars for 12 months without any upfront cost, you better earn more than the $1000 monthly basic income requirement. Even if you can find a private lender willing to lend you money, be a responsible borrower and stay within your limits.
So, you have a low FICO score, which is why you cannot get cheaper borrowing APR from the bank. This is not a problem as long as you have calculated that the higher interest rates from non-bank lending companies are still affordable based on your income. A good estimate is to use 30% of your monthly income as your borrowing limit. If you are going to take a short term cash advance for 30 days and you earn $3000, you should not borrow above $1000. And at most direct installment lenders, your current income level limits you to a maximum of $10000 unsecured/non-collateral amount.
The more you borrow 5000 payday installment loans for people with bad credit and the longer your term, the more difficult it is to pay back completely. You will not want to be a slave working day and night to meet the interest payments, so be very careful not to over-borrow from high risk high interest loansharks.
So when banks refuse to grant you overnight approval unless you put down some collateral, take that as a warning you are facing payment default risk. Avoid adding more unnecessary financial commitments until your situation improves and you qualify for cheap financing plans from banks. Meanwhile, you can still try new monthly installment loans, but these should only be used provided they improve your financial standing, such as helping you to rebuild your credit history.
Yes, it is common to use unsecured installment loans for rebuilding credit, aside from borrowing money for personal expenses. As the monthly installment payment is smaller and more manageable, you will be able to pay on time and this is good for your FICO score. Note that private lenders that do not report to the tracking bureaus such as Experian, Equifax, TransUnion etc will not help your credit rebuilding, so you need to find legitimate providers that gives 5000 dollar loans online with monthly payments.
However, sometimes you can only borrow from private lenders with very bad credit, then you have no choice especially when it is for a real urgent expense. It should be common sense to tell that you will not be able to improve your life if you are continually borrowing money from others whether with or without a decent borrowing/payment history. Restrain yourself not to take the easy way out via 12 month installment loans just to buy yourself some time.