$15,000 Personal Loans: Everything You Need to Know

Emergency medical bills, home repairs, weddings, cross-country moves — any of these could leave you owing $15,000 or more. Or maybe you've racked up $15,000 in credit card debt. In any case, If you don't have cash on hand to pay it off, a $15,000 personal loan could help.

Fortunately, you have several options for getting a loan of this size. If you have very good credit, try LightStream for industry-low interest rates, same-day funding, and no origination fees. Top-ranked lenders also include Upgrade and SoFi.

Compare rates loans for $15,000

Where to get a $15,000 personal loan

Your options include:

Online lenders

Online lenders offer a convenient and fast way to get personal loans. By using an online marketplace, you can often compare several lenders at once to review:

• Interest rates
• Loan amounts
• Repayment terms
• Fees
• Discounts

Many online lenders are known for their fast approval and funding processes (some offer same-day funding), and some are more likely to work with borrowers with bad credit.

Many online lenders offer $15,000 personal loans or higher, with a few offering loans of $100,000 or more.

Banks

While some banks offer $15,000 personal loans, others, such as Chase and Capital One, don't offer personal loans in any amount. Also, make sure the bank you're considering doesn't require you to be a current customer to qualify.

Banks that offer $15,000 personal loans include:

• Discover
• Wells Fargo (must have an open account for at least 12 months)
• Citi
• Truist
• TD Bank
• U.S. Bank

Depending on the bank, you may be able to apply online and get your loan funded without ever setting foot in a physical location. If you prefer the personal touch of a face-to-face conversation, you can visit a branch office and speak with a loan officer.

Credit unions

Credit unions tend to offer competitive rates on personal loans. The average interest rate on three-year credit union loans is 10.80%, compared with an average rate of 12.03% on three-year bank loans, according to the National Credit Union Administration. However, credit union loans are available only to members.

Although many credit unions serve people who work for specific employers or live in a certain area, some are open to just about anyone.

"One option is looking into your local credit union for a loan," says R.J. Weiss, certified financial planner and founder of The Ways to Wealth. "While it may require sitting down with someone to review your finances, credit unions often offer lower interest rates and more flexible terms than traditional banks."

The interest rate on federal credit union loans is currently capped at 18%.

How to compare $15K personal loans

Not all loans are created equal. The costs, conditions, and terms of borrowing $15,000 from one lender might not be the same as another. One way to compare the differences is by prequalifying for a loan. Prequalification provides an estimate of interest rates and terms you might qualify for, making it easier to compare multiple lenders.

Here are some factors to consider as you shop for and compare $15,000 personal loans:

1. Interest rates and APRs

One critical element of a personal loan is the interest rate. A loan with a higher interest rate will likely cost you more over the life of the loan. Always look at the annual percentage rate (APR), which represents the annual cost of the loan, including interest and upfront fees.

Comparing the APRs of different lenders should give you a better idea of which ones are the most and least expensive.

2. Fees

Read the fine print of any loan offer to understand all the fees the lender may charge, such as:

• Application fees: Though not common, some lenders may charge you an application fee, even if you are denied the loan.
• Origination fees: Personal loan origination fees are much more common, especially for borrowers with fair or poor credit. These fees offset the lender's risk and may cover the administrative work to underwrite and process your loan. They're typically a percentage of the loan amount (usually 1% to 10%) and are deducted from your loan proceeds.
• Late fees: If you miss a monthly payment, your lender may assess a late fee. On top of the added fee, missed payments could also hurt your credit score.
• Prepayment penalty: This is not common, but it's worth checking whether a lender would charge you for paying off your loan ahead of schedule.

3. Eligibility requirements

You may not qualify for a personal loan with every lender you're considering. Look at the personal loan requirements for each lender on your shortlist, including:

• Credit score: Many lenders have minimum credit score requirements. If your credit score isn't high enough, you might consider another lender or apply with a co-applicant or a cosigner who has a good credit score. Note that either assumes responsibility for repaying the loan if you default.
• Debt-to-income ratio: Many lenders prefer that you have a debt-to-income ratio (DTI) of 36% or less. That means your monthly debt obligations account for no more than 36% of your pre-tax monthly income.
• Employment and income: Lenders often require you to prove employment status and/or income. Sources of income can include salary or hourly wages, 1099 income for contractors, and government benefits.
• Age, citizenship, and residency: Lenders may require that you're a U.S. citizen, a permanent resident, or have a valid visa. If you aren't a U.S. citizen, confirm that you're eligible for a loan with any lender you're considering. You'll also typically need to be 18 or older. Some lenders operate only in specific states.

4. Repayment terms

Personal loan term lengths vary by lender and by loan amount. Terms can range from one to seven years, and a select few lenders may offer short-term loans (as short as six months) or long-term loans (as long as 20 years).

The term length you choose affects the size of your monthly payment and how much you pay in interest over the life of your loan. When comparing lenders, look for the one that has the repayment term option and monthly payment amount you're most comfortable with.

5. Monthly payments and total interest cost

Once you know the APR and repayment term you might qualify for, compare monthly payment estimates. This information should be in the quotes you receive, but you can use a personal loan calculator to also see total interest costs.

Although keeping your payments low can make monthly budgeting easier, a longer repayment term means paying more in interest over the life of the loan. Try to find a balance between a monthly payment you can comfortably afford and the total interest cost.

What is the cost to repay a $15,000 loan?

The cost to repay a $15,000 loan depends on three factors:

1. Interest rate
2. Repayment term
3. Fees (if any)

Here's how that breaks down: The lower the interest rate, the less you'll spend on the personal loan. The longer the loan term, the more you'll spend on the personal loan (but your monthly payments will be smaller).

The table below shows you how various interest rates and term lengths affect the total cost of a $15,000 personal loan.

How to get a $15K loan

Ready to apply for a $15K personal loan? Here are the steps you'll need to take:

• Review your credit score: Knowing your credit score gives you a better idea of which lenders are more likely to approve your application and at what rate. Check your credit for free at AnnualCreditReport.com. If you have poor credit, you may struggle to get approved for a $15,000 loan.
• Shop and compare lenders: Use an online loan marketplace to compare the best personal loans for your needs, all in one place. Also check lender ratings and customer reviews on Trustpilot and BBB (Better Business Bureau).
• Prequalify with several lenders: While prequalification isn't a guarantee that you'll be approved, it gives you an idea of the interest rate and terms you might be offered if you apply.
• Compare APR and monthly payment estimates: Remember that lower monthly payments associated with a longer loan term may translate to higher interest costs over the life of the loan.
• Compile your documents: Before you apply, compile various documentation that lenders commonly ask for. This can include W-2s, 1099s, recent paystubs, bank statements, and government-issued ID.
• Pick a lender and apply: Review your shortlist of potential lenders and make a final decision, based on prequalified rates, loan terms, fees, and reputation. Then fill out the application online (or visit the local bank or credit union branch) to apply.
• Review terms, sign, and begin repayment: Depending on the lender, approval may take a few minutes or a few days. If the APR, terms, and fees meet your expectations, sign the loan offer and other documents as necessary to receive your funds.

Alternatives to a $15,000 loan

Taking out a $15,000 personal loan can provide you with a fast infusion of cash, but it's not your only option. Here are some personal loan alternatives to consider:

Savings

If you have an emergency fund — and the situation is an actual emergency rather than an impulsive purchase — tapping into it is the most straightforward way to pay for an unexpected expense. You might deplete your emergency savings, but you wouldn't have to take on debt.

Family loan

Asking family to borrow money might not be easy, but it could help you out of a tough financial spot. Keep in mind that a $15,000 family loan is above the $10,000 threshold that the IRS uses to demarcate "gift loans." For loans above $10,000, the lender is generally required to charge interest based on the IRS' schedule of Applicable Federal Rates, and may have to report the interest as income.

Clarify the arrangement formally by documenting a repayment schedule, timeline, interest rate, and payment amounts. You could do this yourself but may prefer to bring in a professional organization specializing in family loans like Namma.

Home equity loan or HELOC

If you've built up enough equity in your home, you may be able to get a lower interest rate than a personal loan with a home equity loan or home equity line of credit (HELOC). Lenders typically require that you have at least 15% or 20% equity in your home, and use your home as collateral for the loan. While a home equity loan can result in low monthly payments, repayment terms can be long — up to 30 years in some cases — which can result in a relatively high loan cost (even with a low interest rate).

Compare loan terms and costs to other loan types before proceeding. It often takes weeks to close a home equity loan and costs may be higher than other loan types due to the appraisal process.

Credit card

A credit card with a $15,000 credit limit or higher could be used instead of an installment loan to purchase what you need. Some have an introductory 0% APR on purchases and balance transfers. Zero-APR offers can range from a few months to nearly two years, depending on the issuer — meaning the transferred balance or purchase doesn't accrue interest during the introductory period.

However balance transfers often come with a 3% to 5% balance transfer fee. In either case, the trick is that to avoid paying interest entirely, you need to pay off the balance on the new card before the offer expires and the regular APR goes into effect.

Learn More: Debt Consolidation Loan vs Balance Transfer