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Where To Get a $1,000 Loan and What To Know

There are multiple ways to borrow a $1,000 loan — here are some of the most common, as well as their pros, cons, and alternatives to consider.

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By Hilary Collins
Hilary Collins

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Written by

Hilary Collins

Freelance writer

Hilary Collins is a finance writer and editor with over seven years of experience. Her work has been featured by USA Today, MSN, Yahoo Finance, AOL, and Fox Business.

Hilary Collins

LinkedIn

Written by

Hilary Collins

Freelance writer

Hilary Collins is a finance writer and editor with over seven years of experience. Her work has been featured by USA Today, MSN, Yahoo Finance, AOL, and Fox Business.

Edited by Jared Hughes
Jared Hughes

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Written by

Jared Hughes

Writer, editor

Jared Hughes has over eight years of experience in personal finance. He has provided insight to New York Post and and NewsBreak.

Jared Hughes

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Written by

Jared Hughes

Writer, editor

Jared Hughes has over eight years of experience in personal finance. He has provided insight to New York Post and and NewsBreak.

Reviewed by Meredith Mangan
Meredith Mangan

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Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Meredith Mangan

LinkedIn

Written by

Meredith Mangan

Senior editor

Meredith Mangan is a senior editor at Credible. She has more than 18 years of experience in finance and is an expert on personal loans.

Updated March 27, 2025

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Taking out a $1,000 loan can vary widely in cost, repayment terms, and what it takes to qualify. Here are four common ways to borrow $1,000, how to decide whether one of those is right for you, and alternatives to taking out a loan.

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What to consider before taking out a $1,000 loan

You should only take out a loan if you are certain you will be able to repay it on time and in full. Loans can cost a great deal, so it’s important to explore all your options and make sure you can afford the payments before you sign.

  • Pull your credit report: Your credit score and credit history will affect how large of a loan you qualify for and the interest rates you’re offered, so it’s best to apply for a loan when you have a credit score that enables you to access the most competitive terms. If your credit score is low, it might be worth it to wait and boost your score before applying.
  • Your income and expenses: Additionally, consider your income and expenses. If you have a budget, make sure you have enough to afford a monthly payment. While a loan allows you to access what you need without paying the full amount upfront, there’s still a monthly cost, as well as a long-term one.

When you’re comparing loans, also take the loan’s APR into account. The annual percentage rate includes your interest rate and fees, expressed as a percentage. The higher your APR, the more you’ll pay over the life of the loan.

Learn More: $5,000 Personal Loans

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$1,000 personal loan

Personal loans are a type of installment loan that typically come with a set APR and fixed monthly payments. You can find these loans at banks, credit unions, and online lenders. Personal loans are usually unsecured, meaning you don’t have to provide collateral, like a car or a home that you own, to back the loan. 

The amount of each monthly payment and the number of months you will need to repay the loan will be determined prior to you closing the loan, so there should be no surprises.

Since personal loans rarely require collateral to secure them, the amount and terms you qualify for will depend on your credit score, credit history, debt-to-income ratio, and other factors. 

If you have a low credit score, a history of missing payments, and existing debt, it will be a challenge to qualify for a loan. You will often still be able to find a personal loan with a low credit score, but the APR will often be very high, and you might not qualify for $1,000, but for a lesser amount. 

$1,000 cash advance

Most credit cards will allow you to withdraw cash on your credit line up to a certain limit. 

APRs for credit cards are higher on average than those for personal loans, however, and cash advances often charge even higher rates and fees than normal use of your credit card. Additionally, the amount of cash you can withdraw is usually limited by your credit card company.

There are also apps that offer fast cash advances and don’t charge interest, but they have negatives to consider as well. While an app can get money in your hands quickly, it often ties repayment to your next payday, giving you a very small window of time to repay what you owe. 

In lieu of interest, these apps usually charge fees. They might seem small, but they can be quite large when analyzed as a percentage of the amount you’re borrowing and the time frame for which you’re borrowing it. Finally, these apps are usually intended for smaller amounts, so it may be difficult to find one that would loan you $1,000.

Payday loan

A payday loan is a short-term loan for a small amount that you’re usually expected to pay in full on your next payday. Generally, you’ll leave a check for the amount of the loan plus interest and fees with the payday lender, and they’ll automatically pull the full amount out of your account on your payday. 

These loans often come with very high interest and fees, to such a degree that payday lenders are restricted or outright prohibited in many states. Because of the high cost of borrowing and the short repayment term, these loans can often trap borrowers in a cycle of debt.

Because some states regulate or ban payday loans, you may not be able to access a payday lender in person or online. Additionally, you may not be able to get a $1,000 payday loan, as many lenders only give payday loans of $500 or less. 

Since these lenders pull the money directly from your account, making them more likely to be able to recoup the money they lend you, they usually don’t check your credit scores or other factors that most traditional lenders consider.

Payday alternative loan

Since payday loans have such a bad (and often deserved) reputation, federal credit unions came up with a better alternative: payday alternative loans, or PALs. 

These small loans, for amounts between $200 and $2,000, have repayment terms of between one month and a year. The fees and interest credit unions charge you for these loans are capped (typically at $20 and 28%, respectively), making them a more affordable and sustainable option.

PALs are offered at some federal credit unions — take a look at credit unions in your area and online to see if there’s one for you. Additionally, decisions on PALs are often based on your relationship with the credit union itself, more so than credit, which means PALs may be a good decision if you have a lower credit score.

Time to fund a $1,000 loan

This will depend on a variety of factors, including the type of loan you’re taking out, the time of day you’re applying, and whether you’re getting cash or money deposited into your bank account. 

Payday loans and cash advances can get cash in your hands the same day, and some personal lenders also offer same-day funding. (Though if you’re opening a new credit card, you will sometimes need to wait for it to arrive to take out cash.) Even PALs and personal loans with longer funding times will rarely take longer than a week to get your money into your account. 

But even lenders that boast same-day funding times can take longer. If you apply later in the day or take a while to submit documentation or complete the application, you may experience a delay. 

Sometimes it might happen with the bank account that’s receiving the funds, depending on your bank’s policies about incoming payments. Finally, some lenders have a more time-intensive process — ask your lender about this upfront if the money is needed in a specific time frame.

Keep Reading: How to Get a Small Loan

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How much will a $1,000 loan cost?

There are three main factors that will determine how much borrowing $1,000 will cost you:

  • Interest rates: Your interest rate is a percentage of the total amount you borrow that you pay the lender. Interest rates can be fixed, as they are for most personal loans, or variable, as they are for most credit cards. Fixed interest rates are generally preferable as they will not go up with the market.
  • Fees: Most lenders will charge fees, including origination fees, application fees, and late fees. Origination fees are common for personal loans and are usually a percentage of your total loan amount that is deducted from your loan before the money is sent to you. Payday lenders, cash advance apps, and credit card cash advances can also come with quite expensive fees. PALs can come with an application fee, but it’s limited to $20 and has to be associated with the real cost of processing your application.
  • Loan terms: Loan terms are the amount of time it will take to repay your loan. Generally, longer loan terms allow you to make a lower monthly payment, but mean that you end up paying more in interest. It’s usually best to opt for the shortest repayment term possible where you can safely afford the monthly payment.

Remember, when taking out a loan, you’ll want to consider the APR, which includes both the interest rate and fees.

For example: Let’s say that you take out a $1,000 personal loan with a 1% origination fee, an interest rate of 11% (near the national average, according to the Federal Reserve), and a 12-month repayment term. The 1% origination fee would be automatically deducted, and you would receive $990. Over the next year, you would make a monthly payment of $88.38, and the total cost of the loan would be $70.58 in interest, or 12.92% APR. You would end up paying $1,060.58 overall.

On the other hand, you could take out a payday loan for the same amount. This $1,000 payday loan comes with a 400% APR (a typical rate) and has to be repaid in two weeks. In two weeks, you will need to pay the full amount due: $1,153.42. That means the cost of borrowing $1,000 for two weeks is $153.42. 

If that seems like a pretty big chunk of your paycheck, you’re not alone — many payday borrowers end up needing to roll over their loan, according to research by the Consumer Financial Protection Bureau in 2022.

The CFPB found that a borrower who took a $300 payday loan could pay $360 in rollover fees over four months and still owe the total original $300.

Personal Loans Calculator

If you decide to take out a personal loan, use a personal loan calculator to determine interest charges over time.

How to qualify for a small loan

While payday loans and cash advance apps tie your loan eligibility to your paycheck, most other lenders, including credit card companies, credit unions, banks, and online lenders, will look at your overall financial picture to see if you qualify for a $1,000 loan. Here are some of the things they will consider:

  • Credit score: As mentioned above, your credit score is a crucial factor. Borrowers with high credit scores (mid-700s and above) are likely to get the best offers. Credit scores take into account things like your history of making payments on time, which will impact how risky a borrower lenders think you might be.
  • Income: Lenders will also want to get a picture of your income, and will likely ask about your employment and want to see your pay stubs. This will give them another way to determine whether you can take on a $1,000 loan.
  • Debt-to-income ratio: A term you might hear is “debt-to-income ratio,” which simply means comparing the total cost of your monthly debt payments to the total amount of your pretax monthly income. Again, this gives the lender a better idea of whether you can reasonably take on another loan.

To improve your chances of qualifying, it can be worthwhile to boost your credit score, increase your income, or pay down some of your existing debt before applying for a new loan. You can improve your debt-to-income ratio by paying off loans or credit cards you’re currently carrying or increasing your income.

Learn More: How To Get a Personal Loan

How to qualify with bad credit

If you have bad credit or fair credit, it can be harder to get approved, even for a small personal loan. But there are a few ways to improve your chances. First, consider lenders that specialize in personal loans for bad credit and have low or no minimum credit score requirements. It may also be worthwhile to seek out a secured personal loan that you can back with collateral — that is, something you own, like a car or home. If you don’t make your payments, the lender can take your collateral, which may make the choice to lend to you a little safer for them.

Another option is to seek out a personal loan provider that allows a cosigner. A cosigner is someone with a better credit score and debt-to-income ratio who can take on the responsibility of the debt with you, which again can improve your chances of being approved for a loan.

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Alternative options

If a $1,000 loan doesn’t seem like the right choice for you, here are some other options to consider:

  • Saving: If you don’t need the $1,000 immediately, or it’s for something you can put off, like a vacation or a wedding, it can be a wise financial choice to wait and save that money rather than borrowing it.
  • Sell unneeded items: If you have items you don’t need with a good resale value, like designer clothes or electronics, you could consider selling those. Facebook Marketplace, Craigslist, and other websites make it easy to turn unwanted items into cash.
  • Take on a side hustle: There are gigs available that offer low barriers to entry, making it easy to start pulling in money on the side. The average American with a side hustle in 2022 pulled in about $1,000 a month from it, according to a report by Zapier.
  • Borrow from a friend or family member: If you have a loved one who can lend you the money, consider talking to them about this. If you decide to pursue this option, draw up a mutually agreed-upon repayment plan — and stick to it.
  • Seek out financial assistance programs: Some nonprofits and state and local governments offer financial assistance for those in need, especially for basic needs such as food and housing. Take a look at what’s available in your area.

FAQ

Where can I get a $1,000 loan?

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Where can I get a loan with no credit check?

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Meet the expert:
Hilary Collins
Hilary Collins

LinkedIn

Hilary Collins is a finance writer and editor with over seven years of experience. Her work has been featured by USA Today, MSN, Yahoo Finance, AOL, and Fox Business.