I am looking to get a small personal loan of $5000 my credit isn't the best, but I am building it back up and have been making payments on time with all my bills. I am slowly but surely paying off old creditors. My monthly income is $6000 and have no problem of paying a loan back. I need the one lump sum to pay for something vs. saving it over 6-9 months. I applied on line and got a call back from Harris Burke Financial - http://www.harrisburkefinancial.com they offered me the $5000 from a private lender and the terms are this: 8 Percent fixed rate at $225 per month over 24 months. I would have to give them collateral ( either car that is owned or home -- I do not have either ) last option is to pay them $903.26 cents which is equal to 5 months and then they would direct deposit the next day. Sounds too good to be true and it's making me feel uneasy when he says it is a personal lender. However, with that down payment I would not have to pay any amount until October of this year as that down payment goes toward my monthly payments. I would like some tips/tricks or known companies that do provide secure loans that have better visibility. I cannot find anything out about then online other than their website. HELP PLEASE.|||You have no collateral to get a loan "against", so your only real choice is to save up...or get ripped off!|||You do not apply for any type of loan by going online. Either go into a bank or credit union and see what your options are. You answered your own question when you said " it sounds too good to be true".|||I would use a service such as Prosper.com (assurancecompliance.com/prosper **FULL disclosure I will get a finders fee for this link. If you are not comfortable with that just go to prosper.com**). They will report good behavior to the credit agencies, but the loans actually come from PEOPLE not banks. Many of these people have been where you are at and are willing to evaluate your situation more so than a bank will.
What happens is Prosper runs a credit report and gives you a grade. Then you propose your loan terms and people decide if they want to help fund it. If your finances look good, and your situation sounds agreeable to potential funders, they will finance it. Usually what happens is people only fund a small portion (this helps them to defray their risk, instead of relying on one person to repay them, they instead fund a portion of a larger amount). You will actually probably end up with 50-100 people that will fund $25-$100 each (don't worry Prosper takes care of the logistics and you only have to pay Prosper, who then distribute the money to the 50 people).
I don't know the company that you are talking about, but when you have bad credit you do NOT get 8% on unsecured debt (at least I wouldn't fund it), even if you front load the terms. Maybe they are just good people and feel that you are a good credit risk, or they feel that to charge more is not ethical. What is more likely is they are going to take your money and will give you a cashiers check that will bounce in 6 weeks, and you will never hear from them again AND you will have a new debt to deal with as you have to pay back the bounced check.
Good luck. I know that the rebuilding process is hard, but it is worth it. Keep it up
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