Are you interested in big loans because you just received a big bill that you did not plan on or because you had an emergency come up? Big loans are available, depending on what your idea of big is. What you need to understand about loans before you start looking for the biggest loans possible, is that they are not meant to take the place of traditional loans. Instead, they are meant to help you meet your shorter term financial needs that cannot wait for or for traditional funding.
What to Expect with Big Loans
Think you’re going to find big loans for $5,000 or more? If so, you may want to think again. Generally you are only going to be able to find loans of up to $1,000 or 30% of your paycheck. What this means is that if your paycheck is $1,500 each month you may only be approved to borrow $450. The reason for this is that the lender needs to think about how easily you will be able to pay this amount back. The lender does not want to lend more to people than they will be able to pay back, or the lender will end up going out of business in a hurry!
The big loans that most lenders will offer are $1,000. This is quite a bit of money when you consider that you are only borrowing it for two weeks, in most instances. You may be able to borrow more than the 30% of the paycheck if you are going for a longer term loan, such as one that extends out for 30 days. The reason for this is that you will then have two paychecks to bounce back from the financial struggle and the lender anticipates that you will be able to pay back more than you would have if you only borrowed money for two weeks.
What you want to remember is that loans are not set up to provide you with as much funding as traditional loans. These are just meant to get you through until , which is why they are called loans! It can be frustrating to be so limited in what you can borrow when you need the money and you need it now, but keep in mind that you want to be able to pay off whatever you borrow in two weeks. Can you afford to pay off big loans of more than $1,000 in two weeks without having to take out another one to get through the following two weeks?