Best Small Personal Loans in October 2025

A small loan is generally any loan under $2,000 that you can get quickly. But there are a wide range of small loan types, including cash apps, BNPL, credit cards, payday loans, and personal loans. In most cases, the best small loans are personal loans, hands down. That's because you can often borrow the most money, get the lowest monthly payments, and have the longest time to repay — plus a personal loan can help build your credit. 

But there are always exceptions, so we'll cover the gamut of small loan types, how they work, what to watch out for, and which is best for you.

Best small personal loan lenders

These are the best small loans you can get, if you can qualify. And if you're OK waiting one to three business days for the money. 

What is a small loan?

While “small” is a relative term, a small loan can be thought of as one that's less than $2,000. Small loans are often designed to provide money within minutes or days. The most common types of small loans are cash apps, credit card cash advances (or purchases), payday loans, personal loans, and BNPL (for retail purchases). 

The quickest types of loans to get — payday loans and money from cash apps — often cost the most. They also don't require a credit check, while the most affordable small loan types typically run your credit and could take a couple days to come through. 

Types of small loans

Some types of small loans charge interest while others charge fees. To equate the two, we look at each loan's annual percentage rate (APR), which accounts for both the interest rate and upfront fees. The lower the APR, the less you'll pay to borrow money. 

• Personal loans: Personal loans tend to have the lowest rates of all small loan types, topping out at 36% APR, and the lowest monthly payments. They also offer the largest loan amounts — up to $50,000 with most lenders (depending on your income and credit). Repayment terms are available up to 5 or 7 years. The catch is that you'll generally need to undergo a credit check. But you can prequalify first to find out if you're likely to qualify without hurting your credit (via soft credit inquiry). A few lenders offer personal loans with same day funding, including LightStream, SoFi, and Rocket Loans. 
• Credit card cash advances: If you have credit available on your credit card, you may be eligible to withdraw a percentage of it in cash at an ATM or bank. However, you'll pay a higher APR than the standard purchase rate on your card (often 30% or more) plus an upfront cash advance fee, such as 3% to 5% of the advance amount. Also, interest is charged immediately on credit card cash advances — there's no grace period like there is on purchases. The amount you can borrow is typically a percentage of your credit limit, such as 20% or 30%.
• Payday loans: Payday loans are short-term loans, usually up to $500, depending on your state, and repaid over 2 weeks. Repayment is automatically deducted from your bank account when your next paycheck is deposited. Many states have effectively banned payday loans as their high fees and short repayment terms equate to astronomical APRs — over 400% in some states. If you have bad credit or no credit, there are often better options. 
• Cash apps: You can typically get a small amount from a cash advance app, such as a few hundred dollars, depending on the app and your income. Cash apps don’t require a credit check, but watch out for fees, such as subscription fees, expedited funds fees, and optional tips — which can make cash apps as expensive as payday loans. You must also pay the amount back by your next paycheck. For example, EarnIn lets you borrow up to $100 per day (up to $750 per pay period) and has no mandatory fees.
• Buy now, pay later apps: BNPL apps, such as Affirm, Afterpay, and Klarna, are available nearly everywhere for a wide range of retail purchases. True, they won't put money in your pocket directly. But if you can use one to pay for groceries or other essentials — thereby saving yourself the cash you would have used — they can accomplish the same end. You can usually split purchases into 4 equal payments paid over 6 weeks at 0% APR. Longer terms are also available, but may carry interest rates similar to personal loans. 

How much will my monthly payments cost?

Overall loan cost and monthly payments can differ significantly, depending on your credit score. This is illustrated below with a two-year, $2,000 personal loan. APRs are typical of each credit score tier.

Lenders may offer multiple options for APR or the length of repayment terms. A shorter repayment term can save you money on interest, while longer terms generally come with lower monthly payments. 

When comparing repayment options, choose one that strikes a balance between total interest costs and how much you can comfortably afford to pay each month. Use a personal loan calculator to simulate different repayment plans.

How to compare small loans

It’s important to make smart decisions about borrowing money, even if it’s a small amount. Keep these factors in mind as you compare small personal loans:

• Look at available loan amounts: Some online personal loan lenders offer $1,000 loans, and others offer loans starting at $1,500 or $2,000. Others specialize in bigger loans, such as BHG ($20,000 to $250,000), while cash apps typically lend less than $500. How much money you need can dictate the type of loan you should get. 
• Compare APR ranges: The annual percentage rate represents the yearly cost of borrowing, including the interest rate and any upfront fees. A lower APR means lower cost. You can estimate the APR you'll qualify for on a personal loan by prequalifying first. This step takes a few minutes and won't hurt your credit. It's not a formal loan offer and your final terms could differ, but it can help you narrow down your options. Note that when you apply for a personal loan, your credit score may dip temporarily.
• Consider repayment terms: Many small loans are short-term, with repayment terms set at two weeks. But personal loan repayment terms typically range between 2 and 5 years. A longer repayment term can help keep monthly payments affordable, even though it can increase the overall loan cost.
• Consider funding time: If you have an emergency expense to cover, fast funding is important. Depending on the type of loan and lender, you may receive your funds the same day you get approved, within 24 hours, or in a few business days. Some lenders can take up to a week.
• Understand fees: Some fees may not seem like much, like a $5 charge to deliver money instantly. But they add up, especially if you're only borrowing a few hundred dollars or if you need to borrow repeatedly. Some fees, such as origination fees, can reduce the amount you receive if they're charged upfront out of the loan amount. Origination fees are commonly charged on personal loans and can range from less than 1% to 15% of the loan amount, depending on the lender. 
• Read up on reputation and customer service: Before taking out any loan, consider reading customer reviews on sites like Trustpilot and Better Business Bureau.
   

Check Out: Best Emergency Loans

Pros and cons

Keep these benefits and drawbacks in mind before you take out a small personal loan.

Pros

• Can help cover a small expense: A small personal loan may make it easier to pay for a small expense. Limiting your loan request can also help you avoid overborrowing.
• Easy application: Typically, you can apply for a small personal loan online, from the comfort of your own home. Most applications take a few minutes to complete.
• Less stringent application criteria: Some small loans, like cash apps and payday loans, won't check your credit when you apply. These could be easier to get than other loan types that will run your credit. 
• Fast funding: Depending on the lender, you could receive the loan funds the same day you're approved or the next business day.

Cons

• May not be large enough: Small personal loans provide fewer funds, so they might not cover your expenses completely. You might have to look elsewhere for additional funds, depending on what you qualify for.
• Bad credit equals limited options: If you don’t have good credit, your options for small loans may be limited to cash apps and payday loans. Many personal loan lenders prefer borrowers with a good to excellent credit score.
• Potential fees: Some lenders charge fees that can increase the overall cost of your small personal loan. A few examples are origination fees and late fees.

How to qualify for a small personal loan

Start here if you need a small loan. No one is guaranteed credit, not even for a small personal loan. But if you can qualify, you'll likely save money and could improve your credit compared to other small loan types. Each lender has its own eligibility criteria for small personal loans. Consider the following before applying:

• Check the lender's minimum credit score requirement: Lenders prefer borrowers with at least fair credit. But some lenders are more lenient and may accept those with bad credit, though usually at a higher APR. Note that a high income can sometimes offset the negative impact from a low credit score.
• Check the lender's minimum income requirement: Most lender's require a minimum amount of annual or monthly income to qualify. By verifying your income through pay stubs or bank statements, a lender confirms your ability to pay back a small personal loan. A stable income can increase your chances of approval.
• Know your debt-to-income ratio (DTI): Your DTI gives lenders an idea of how much room is in your budget for additional debt. To calculate DTI, divide your minimum monthly debt payments by your monthly income before taxes. Most lenders like to see a DTI below 36%.

Check Out: How To Get a Small Loan

FICO credit score ranges

Credit scores are one of the criteria that most lenders use to gauge your ability to pay back a personal loan. Many have minimum credit score requirements, although not all lenders disclose them. Find out if a lender has a minimum credit score requirement before applying.

The FICO credit score ranges are:

• Poor (less than 580): Poor credit or no credit history can make it difficult, but not necessarily impossible, to get approved for a personal loan.
• Fair (580 to 669): Though you may be able to take out a loan with fair credit, you’ll likely be charged a higher APR.
• Good (670 to 739): With good credit, you’re more likely to qualify for a loan and also get a lower APR than someone with fair or bad credit.
• Very good (740-799): Very good credit puts you in a position to receive APRs on the low end of many personal loans.
• Exceptional (800+): Exceptional credit opens the door to many personal loans and could help you land the lowest advertised APR.

Check Out: What Credit Score Do You Need for a Personal Loan?

Where can I get a small personal loan?

You can get small personal loans from banks, online lenders, or credit unions. Each option has advantages and drawbacks.

Banks

Many banks, but not all, offer small personal loans. Banks such as Bank of America and U.S. Bank offer small personal loans that don’t require good credit to existing customers, such as their Balance Assist and Simple Loan products, respectively. Some banks also offer APR discounts to existing customers. If you appreciate in-person customer service, talking to a loan officer at a branch office could be appealing.

Read More: Best Banks for Personal Loans

Credit unions

Member-owned, nonprofit credit unions are another option for small personal loans. For example, Navy Federal offers a personal expense loan starting at $250. Some credit unions also offer payday alternative loans (PALs). Depending on whether the loan is a PALs I or PALs II, you could borrow up to $2,000 for a repayment term between one month and 12 months. They're especially suitable if you have bad or fair credit and are already a credit union member. APRs on PALs are capped at 28%.

Read More: Best Credit Unions for Personal Loans

Online lenders

With no branch offices to maintain, many online personal loan lenders are able to reduce overhead and pass the savings along to consumers. The use of automated technology and artificial intelligence allows online lenders to make lending decisions that are less reliant on credit scores. Although many online lenders offer small personal loans with minimum APRs as low as 7%, their maximum APRs may be higher than those of banks and credit unions. 

Read More: Best Online Personal Loans

How to apply for a small personal loan

Follow these steps to apply for a small personal loan.

1. Compare lenders: Do your research and find at least a few lenders that offer small personal loans that align with your goals. Consider APRs, repayment terms, loan amounts, fees, and eligibility requirements.
2. Prequalify: Some lenders let you prequalify for a small personal loan without any impact on your credit. This lets you preview possible rates, amounts, and terms from different lenders before applying. Prequalification won't impact your credit. But be prepared to provide your date of birth and other identifying information like your Social Security number, so lenders can give you a rate estimate.
3. Pick a loan option: Choose the loan that makes the most sense for your situation.
4. Complete the application: Fill out the full application. Be prepared to submit documents, like your government-issued ID and pay stubs. It is at this point that the lender will conduct a hard credit inquiry.
5. Get your funds: Once approved, you’ll have to sign a loan agreement. You can sometimes get your funds via direct deposit as soon as the same or next business day after approval, but this varies by lender.

Related: How Do Personal Loans Affect Your Credit Score?

Small loan alternatives

Here are some other options to consider:

• Credit card: Paying for a small expense with your credit card would save you the trouble of applying for new credit. However, credit card interest rates are considerably higher on average than personal loan interest rates. The Federal Reserve estimates the average credit card interest rate at 21.39% and the average interest rate on a two-year personal loan at 11.14%.
• Borrowing from family or friends: If you have family or friends you can borrow from, it may be cheaper than a traditional loan. However, make sure you come to a written agreement on terms and expectations for repayment.
• Side hustle: Ride-hailing jobs, selling unwanted items, or a part-time gig can get you some extra money if you don’t want to take out a loan.
• Nonprofit assistance: Local services, such as nonprofits, can connect you with resources to help you with everyday expenses like groceries. Contact 211 for community services in your area.

Related: Payday Loans vs. Cash Advances

How to avoid predatory lenders

There are plenty of legitimate small loan lenders out there, but unfortunately, there are also plenty that prey on those who need money now. 

To avoid predatory lenders, take the following steps before agreeing to any loan:

1. Research lenders thoroughly: Check online reviews and ratings from resources like the Better Business Bureau (BBB), the Federal Trade Commission (FTC), and Trustpilot. If you can’t find a lender listed on Trustpilot or the BBB, it could be a personal loan scam. Check listed lenders for patterns of serious or unresolved complaints.
2. Avoid loans that guarantee approval: Most lenders either run your credit or check your bank account to protect against nonpayment. If any lender promises to approve you no matter what, it’s unlikely they’re a legitimate lender.
3. Recognize high-pressure tactics: If a lender pressures you to close on a loan today, to borrow more than you need, or in any way makes you feel uncomfortable, walk away. That lender most likely has its own best interests in mind and not yours.
4. Review terms and fine print closely: Some legitimate types of lending may have bad actors that don’t properly disclose fees. For instance, the FTC took action against cash app provider Dave in November 2024 for charging undisclosed fees and “tips” to consumers without their consent. 
5. Watch out for “too good to be true”: If a lender offers a loan amount, APR, or repayment term that is far better than what you could qualify for elsewhere, be very careful. Thoroughly vet that lender before proceeding and confirm other borrowers’ experiences on sites like the BBB and Trustpilot. 
6. Check the APR: If a lender doesn’t disclose the loan’s APR, that’s an immediate red flag. Use an APR calculator to determine it yourself. Loans with triple-digit APRs are often predatory. 

Methodology

Credible evaluated 32 lenders across 1,216 data points to find the best personal loan lenders for small loans. We chose the best lenders based on the following weighted categories:

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

Credible’s team of experts gathered information from each lender’s website and from our partners directly. We also considered each of our partner lenders’ statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Each data point is verified by a senior editor to make sure it’s accurate at the time of publication.

Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.