If you are thinking of making a large purchase soon, or perhaps are looking to pay off some other smaller debts then you may have identified a need to borrow 5000 dollars. For anyone who wants to know how to borrow 5000 dollars you have a fairly simple choice. Because the amount of 5000 dollars is comparatively small you are likely to have two direct alternatives available to you. You can borrow 5000 dollars using a loan, such as an installment, or signature loan, or even a home equity line of credit loan; or you can borrow the money on a credit card.
Since the credit crunch, it has to be said, almost all forms of borrowing have become both more difficult to secure and more expensive. The expense tends to come, when borrowing money, in the form of arrangement fees and interest rates. Having said that if you are prepared to shop around you can still secure some pretty decent terms for your 5000 dollar loan.
As stated previously personal loan rates have increased in the previous couple of years, due mainly to the perception that lending is perhaps a tad more risky than the banks and other lenders used to believe. Taking out a personal loan for 5000 dollars does take a few days to arrange and therefore not as useful if you need to get hold of some cash fast. A typical loan repayment period if you do borrow 5000 dollars would be something like 5 years, and if the interest rate being levied on the loan was say 8%, which is perfectly achievable even in todays market then the likely monthly repayment would be of the order of 100 dollars per month.
Credit cards can be a great way to borrow 5000 dollars, especially if you need the money quickly, but the really good deals with credit cards come if you are prepared to switch your credit card provider. In the very simplest of terms you select a provider who is offering 0% terms on purchases. There are providers out there who are able to offer a year and sometimes more for such purchases. Then, when that period runs out you switch to a 0% balance transfer provider, or a lifetime balance transfer card. There will be switch fees of up to 3% each time you switch but if you select the right credit card, provided you are disciplined and make regualar payments against the outstanding balance each month you should be able to reduce the overall cost paid when you borrow 5000 dollars.
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