Discussion Forum General Discussion General Leica Discussion Taking an emergency personal loan with 600 credit score.
  • #31390

    As the title states…

    I’m in my mid-20s, making $60,000/yearly from working pt and disability pay.

    Long story short, about 5 years ago, I locked myself in my house and didn’t leave for about a year and a half, nor did I take care of any finances.

    The only thing that got me out was a 3 month hospitalization, and moving back to my home city once the military decided to discharge me with a 100% disability rating.

    Since then, I’ve paid off about $25k credit card and personal loan debt, and I have about $4,000 to go, with a $250/month car loan and $2,000/rent trying to pay off my credit cards as fast as I can since I got my job.

    Unfortunately, there’s been an emergency and I have to take out a $6,000 loan that I need by tomorrow. I currently have $10 in my bank account after spending the $4,000 I had in my savings and checking on this emergency.

    Due to my bad credit history, it’s been near impossible to get a loan by any of the banks I’m associated with (Navy Federal, Chase and my small, local credit union I’ve been with my entire life).

    So I took to Credit Karma, and the only loans I’ve had offered were about 35% interest, $210 for 60 months by OneMain Financial. The “interests and fees” are $6,600 alone for a $6,000 loan.

    I guess my question is, as someone who is obviously financially illiterate and at this point hanging on by a thread, is there anything I need to look out for before I take this loan? I’m also a little confused how a $6k loan, 35% interest rate for 60 months ends up = $12,600.

    It has “no early payment penalty fee”. Does that mean, if I pay off my loan by February, I’d just be paying for the interest accumulated by then?

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