needing $5000 loan. Where would i get the best deal.
I Need to Borrow $5000
hsk on 21/06/2015 - 15:36
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I never thought of this. What is the likelihood of a bank writing out a cheque to the account owner and not the bank you are transferring the debt to?
Have a look at some of the past Citibank Signature C/C deals and you'll get some ideas there. Some claimed $30,000 balance transfer with cheque to self.
I've only transferred a CC debit from one bank to another once - and that was about 15 years ago.
So that I'm clear, you for example have a $5000 debt on your CC. You transfer that $5000 debt to a new bank credit card to avail of one of the $0 interest for the first 9 months deals. New bank writes a cheque for $5000 in your name with the purpose of you using it to clear the debt with original bank.
Am I understanding this correctly?
@GaelicAU: kind of.
new bank writes a chequees -> only citibank not just any banks can write a cqh under your name so you can use it for ANYTHING: buy a car, put under pillow, or pay to clear the debt with original bank as you said.
so, imagine if you dont have any debt. you still call citibank and ask for a cheque, they will give you and you can use that money for anything, example helping family memberany other bank, they will need your original bank details with the debt on it, so they can pay straight and clear your debt with original bank.
Thanks [@erwinsie]. I appreciate the explanation.
@GaelicAU:
Just make sure you make your minimum repayments on the card each month, pay the full amount of the cheque-to-self back within the interest free period and DO NOT use the card for ANYTHING ELSE (purchases etc.) until you've paid back the full amount of the cheque-to-self, or this will quickly go from your cheapest option to your most expensive option (depending on how much value you place on knee caps, I guess).DO NOT use the card for ANYTHING ELSE
** Very Important**
@Funky Moose: …as do Virgin Money (on a 'promotional' basis, so no guarantees about a fee/interest free offer being made).
boy you must be new in ozb family.
the likehood is 100%, if you have cc with citibank and apply at the right time. or for existing account, just wait and check the reward section and eventually you will get one.
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Interest rates are terrible with Nimble. This service is no better than the loans Cash Converters and other similar businesses offer.
No mention on the ad that you actually have to pay the money back so just do what they tell you on the tv - 'just Nimble it and move on'.
No sense of humour you lot.
Sarcasm?
No
That's concerning. That type of suggestion should be grounds to be sent to the penalty box
Ask a relative?
Ask your boss for a wage forward?Ask your pet cat?
Not sure why so many down votes, I was being genuine. Not always, but some people do have good relationships with relatives and/or their boss.
I used to loan money to employees fro mtime to time and never had an issue. I didn't advertise the fact, but it was something I was able to organize so it is worth asking
Did you charge them interest?
No. I could have but honestly the three times I was asked to do it the circumstances were such that I was happy to help them and at the end of the day it was a low risk situation for me, part of it was agreeing for a deduction each week from their pay to pay it back etc sure they could have just quit and I may or may not have pursued it but I weighed the risks and bet on the individuals.
@Japius: You're a nice person. Every time I've loaned out money, I have never received it back in full. I think the key is to always have some sort of agreed equity!
I used to act as bank to my brother, but realised I wasn't doing him any favours.
I think it's better to have to pay through the nose as an incentive to never again find yourself spending beyond your means.
Edit: who opened this back up? I had no idea I was replying to a 6 month old thread! :)
Yeah I could borrow $5000 without any issue from my parents or siblings.
How bout RateSetter?
Steptoe interesting idea who would you suggest to try ?
Ozbargain member since 2009… 592 comments… Doesn't know how to 'reply'
Well that was not very helpful. Why not PM instead of humiliating someone publicly.
Sorry robby, meant it as good fun "tongue in cheek" but I can see how they could take offence to it.
"needing $5000 loan. Where would i get the best deal."
Depends entirely on you and your circumstances.
Why not investigate a large credit union or mutual bank?
They lend on your capacity to repay rather than selling assets you already have.
But everything will depend on you credit rating and/or past financial record.If you have a Citibank Credit Card, login to your account and check out their "Offers" section. They have this 0% balance transfer for 12 months offer available most of the times, If you don't have a "Balance Transfer", they will send you a cheque of upto 80% of your credit limit. I got a $7K cheque just last week.
If you have no debt balance to transfer to them, for what purpose do they think they are giving you a cheque for?
I can't wrap my head around why a bank would give you $7000 by the way of a 12 month interest free loan.
It is late though, so please excuse me if Im not grasping the obvious.
They hope that I default on repayments and then they will charge me almost 20% interest. Giving a loan to an existing customer (as they know your spending habits and repayment history) is the safest bet for them. As simple as that.
Why? I don't know but for almost 10 years now they have kept making me cheque to self offers and I have never paid them a dollar in interest or fees. I guess they hope one day I will make a mistake
Usually they don't do it at 0%, mostly around 9% - but once you have it, you can transfer the debt to another card at a better rate.
They don't care if it's not paying off existing debt, they even suggested taking the money putting in an interest bearing account for a rainy day (ridiculous idea with he interest differential), or using it for a holiday.
Sell your eneloops
noooo…
never.
sell your house or car first.
Sell all the electronic devices that have eneloops in them before selling the eneloops!
Work the streets, quick money and you don't even have to pay it back.
Get the full amount up front, else you could just get stuck with the deposit.
There was a court case about that recently. Guy was found guilty of rape. Sorry to turn this into a something macabre. Maybe someone can pin a joke on the end.
Still a better love story than Twilight
are there still many ozb members that in trouble for just $5k? it is not small amount but not big enough for getting a loan. people should have a saving for rainy day like this.
maybe need to visit this forum less and save $ more.
just saying.Neither me nor anybody I know would be able to just pull $5000 cash out of a hat.
If you find a Sale on those hats, please post.
Only if you do
lol @ steptoe
Depends on age. Some ozb start young.
Thanks for the suggestions and for those that are judging or being smart don't bother I do not want or need your opinions. I have come here for advice not judgement.
I think the most helpful responses are those giving you a hard time. I see grief in your financial future if you follow advice like getting a credit card.
You haven't provided enough information to get any useful advice. I'd be selling something or finding a way to not need to borrow $5000.Hold up, we've got a fortune teller over here
I'm a fortune teller for saying putting $5000 on a card while it's free thinking the problem will be gone when the interest free runs out?
I don't think that's a big call.I called that my crystal ball is limited when I don't know what the money's needed for, what other options he has. But there seems to be plenty here with better fortune telling skills than me.
you must be new here.
try banks for a loan ING is good,buy a scratchie😀😀
I'm sure you have your reasoning for wanting a $5000 loan, and I assume the loan is to either get you out of trouble or to enable you to make money.
if it is the earlier than I hope you find your saving grace and also find a way to pay off the loan and get ahead of the game. ( I would hate to ever get stuck with a personal loan again)
Cleary being a smart guy, I think you should do the really smart option. Don't bother getting a $5k loan, full amounts are for suckers. Get a $2k loan, then spend the whole amount on Ozlotto tickets. Pretty much guaranteed to win, and you will get like $15million instead. That way you will be ahead almost straight away.
A vague question warrants this response. +1.
Honestly. Better than disguising just as bad ideas as advice
Citibank have a 0% for 24 months balance transfer offer at the moment with a $199 annual fee.
There's also a couple other credit cards
The simplicity card has a 12 month BT offer (can be used for cheque to self) and no annual fee. The recurring BT offers are across all their "platinum" range cards so simplicity, signature, platinum, etc.
Marka ok so am a little lost. Apply for citibank interest free credit card and then how do i get $5000
I suggest applying over the phone and mention the balance transfer offer of 24 months interest fee.
Ask for the balance transfer as a cheque to self. This will mean they will mail out a cheque in your name to you.
Note that they will offer a balance transfer of up to 80% of your credit card limit. In your case it you'll need to get approved for a credit card limit of 6500. If you're experiencing financial hardship it is likely you will be declined if there's any reports on your credit history.
Also, i believe that you'll need to earn at least 35,000 per annum to be eligible for the card.
And, remember there's still the annual fee per year.
The initial offer you have to request over the phone. You have 90 days from the date your card is approved to cal land request a cheque to self under the promotional offer (24 months for platinum card, 12 months for simplicity etc) They send you a cheque for up to 80% of the approved credit limit.
Citibank is an odd bank with lots of formal processes, I find its best to apply, get approved and then you find out your credit limit when it arrives, then call up and request the cheque for 80% of that limit.
If you dont need the 24 month offer right now I would look at the simplicity as it has no annual fee.
from your family. if you're lucky, it will be called a 'gift' rather than a loan
Actually am borrowing it to help my family out of a tight spot just was asking for some OZbargain advice so I make an informed decision.
Something my mum always told me "never lend money to family or friends unless you treat it like a gift" . If you get it back terrific but if you don't you don't want it to ruin a relationship.
This so much ^^. Lent money to a good friend in High school to which he paid some of it back. Spoke to him less and less since I got mad everytime i saw him and asked him to pay for it back. Eventually just talked myself into saying that it was lost money and i won't get it back. Obviously not the greatest feeling, but a lot better than anger i used to feel.
The crazy thing is, If i never lent him the money in the first place i reckon we would still be friends. I tried to be a good friend and lend him the money. Being that nice relative or nice friend who is always there for someone financially is a slippery slope.
What if this friend can't pay you back?
Do you know your friend can pay you back?
Are you willing to lose that money?
nva mind
Lots of good advice here about balance transfers etc. Just remember - after the zero interest period, most cards then apply an interest rate of 20-25%, so consider whether you'll be paying the debt off before the end of the interest free period. (Or doing the Ozb option of then rotating to a different zero-interest provider)
If you have a home loan then you can consider adding the debt to your home loan, but obviously after 25 years (or whatever the duration of your loan) that $5000 debt will end up costing you around $5000 in interest.
Obviously there's the option of a personal loan - RACV or NRMA or whoever will give you one with an interest rate of around 12%
If you were interested in the personal loan path, I'd instead take out an ME Bank credit card. Their interest rate is 9.9% on cash withdrawals, so this is one of the lowest-interest personal loans you can get at short notice. If you can pay off the debt within one year then that's only $500 interest you've paid. If you can pay it off in two years then it's more like $800. AFAIK this is one of the best cards in the market as their 9.9% rate applies to everything - balance transfers, cash withdrawals, and purchases.
On the other hand if you went down the balance transfer path, if you get one that's got 0 interest for 12 months, but 25% interest thereafter, then over two years you'll have only paid $625 in interest - so this is still the better option if you can get one.
I assume 'the Ozb option of then rotating to a different zero-interest provider on an on-going basis' wouldnt look too great on your credit record - and could affect your borrowing later on down the track.
Work as a lady of the night for a while?? Good option if your female.
ups! why no one thought of this?
If you've got a good job and it pays good money and you have security in relation to that job, then you can go to the bank and you can borrow money and that's readily affordable.
+1 for this.
As a good citizen, we have to follow what our leaders told us to do…Thanks Joe.
nimble.com.au
edit: u asked for best deal. this not best deal sorry.
Try a peer to peer lender like society one. Google peer to peer lending. The rates are better than bank rates.
Your mum…
….loves it
…. from behind
… the couch
No bikies suggestion so far…?
If I'm on workers compensation, how do I get a cc?
… go back to work?
I really can't go back to work at this stage. If u can't help don't comment
There's heaps of Nigerian princes around who are bursting at the seams to give away heaps of cash. Lotteries and princesses too. Good luck!
A real left of field idea. I don't know your situation (or your families) but have you tried getting a loan through Centrelink?
Also, in extenuating circumstances people can still access their super( I had a flat mate do it at age 30 so he could get out of debt.)thanks everyone, Mum is a aged pensior so no way she has it, and the only other family I have is the one asking for the loan, although I imagine it is more of a gift than a loan, as there is no mention of paying back so that is why I want to find the least painful method of borrowing.
Before burdening yourself with more unwanted debt… Try here for advice. Costs nothing.
http://www.humanservices.gov.au/customer/services/centrelink…If you don't have $5k yourself, you have no business giving $5k to someone else.
Tell them to get a credit card their own selves.
I agree, if you are in a situation that you don't have 5K in savings you should not go around borrowing 5K. Unless it is a state of emergency, such as a funeral.
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0% Balance Transfer C/C with cheque to self if you can get one.