Anna Baluch is a personal finance writer with more than six years of experience. Her work has appeared on CNN, New York Post, and U.S. News & World Report.
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 November 21, 2024
Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”
Upgrade offers the best small personal loan overall thanks to its competitive interest rates and discounts for direct pay or autopay. A small personal loan may be a good way to cover an unexpected expense or one you didn't budget for, like a surprise medical bill, a needed car repair, a vet bill, or a weekend getaway. Even if you have a credit card, a personal loan is often a better choice. This is because personal loan rates, on average, are much lower than credit card rates. According to the Federal Reserve, the average rate on a two-year personal loan was 12.33%, while the average credit card rate was 21.76%.
But to find a small personal loan, you need to know where to look. We've compiled a list of the best small personal loans, with loan amounts starting at $600, to get you started.
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
cons
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
pros
Secured loans available
Low minimum income requirement
Scored second in J.D. Power's Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
cons
Origination fees
No discounts
Not available in DC, IA, VT, or WV
Loan amount
$2,000 to $50,000
Fees
Origination fee, late fee, unsuccessful payment fee, check processing fee
Discounts
None
Eligibility
Available in all states except DC, IA, VT, and WV
Min. income
None
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days after successful verification
Loan uses
Credit card refinancing, debt consolidation, home improvement, and other purposes
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
May fund in 1 business day
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
cons
May charge a high origination fee
No discounts offered
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
Borrowers with bad credit considered
Funds as soon as the next business day
2-year loan terms available
cons
No discounts offered
Origination fee
Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Loan amount
$2,000 to $35,000**
Fees
Origination fee, late fee, dishonored payment fee
Discounts
None
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Min. income
$1,200 monthly
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
pros
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
Mobile app
Secured loans available
cons
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
Borrowers with bad credit considered
$25,000 annual income requirement
Autopay and direct pay discounts available
Can fund in one business day
cons
High APRs
Potentially high origination fees
Not available in Iowa
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
Flexible eligibility requirements
Offers secured options
Competitive bad-credit loans
Physical presence
cons
Availability
Origination fees
High starting APR
Low maximum loan amount
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
As you compare lenders, look for small personal loans that offer the amount you need with credit score and income minimums you can meet. Then, prequalify with multiple lenders to get a better sense of the APRs and loan terms you might qualify for. You'll typically need to provide your Social Security number so lenders can estimate your rates, but prequalification won't hurt your credit.
(Prequalification is not an offer of credit either, and your final rate may be different. When you proceed to a formal application, the lender will conduct a hard credit pull that can slightly lower your score.)
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
Loan amount
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
Repayment terms
2 to 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
Available in all states
Min. income
Does not disclose
Customer service
Email
Soft credit check
Yes
Time to get funds
1 business day
Loan uses
Credit card refinancing, debt consolidation, home improvement, major purchase, other
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
Loan amount
$1,000 - $50,000
Repayment terms
3, 5, or 7 years
Fees
Origination fee
Discounts
Autopay and direct pay
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Min. income
$25,000 annually
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
Loan amount
$1,500 to $20,000
Fees
Origination fee, unsuccessful payment fee, late fee
Discounts
None
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
No minimum credit score requirement on lender site
Low minimum APR
Trustpilot score of 4.9/5 stars
May charge a high origination fee
No discounts offered
More details
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Loan amount
$1,000 to $50,000
Fees
Origination fee
Discounts
None
Eligibility
Available nationwide
Min. income
$12,000
Customer service
Phone, email
Soft credit check
Yes
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Methodology
Credible evaluated the best personal loan lenders for small loans based on factors such as customer experience, minimum fixed rate, minimum loan amount, funding time, loan terms, fees, interest rates, discounts, and minimum credit score requirements. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.
Here are several factors to keep in mind as you shop around and compare small personal loans.
APR: The annual percentage rate represents your yearly borrowing cost in relation to the total loan amount, and includes the interest rate and any upfront fees. A lower APR can lead to hundreds of dollars in savings.
Loan amounts:Many lenders offer small personal loans of $1,000, and some offer even smaller loan amounts. But personal loans are available up to $50,000 or more if you qualify, depending on the lender. It’s advisable to only borrow the amount you need.
Repayment terms: Typically, you’ll have between 1 and 7 years to pay back a personal loan. A shorter repayment term can save you money on interest, while longer terms generally come with lower monthly payments.
Fees: Some lenders charge fees on small personal loans. For example, you may face origination fees, insufficient funds fees, and late fees. Origination fees typically range from 1% to 12%, depending on the lender, and are usually deducted from the loan funds before you receive them. Origination fees are accounted for in the loan's APR, so you can easily compare the cost of a loan without an origination fee to one with one.
Cosigner: A cosigner with solid credit and a stable income can help you get approved for a small personal loan, or possibly help you net more favorable terms. But not all lenders offer loans with cosigners. Additionally, a cosigner becomes responsible for the loan if you miss payments.
Time to fund: If you have an emergency expense to cover, fast funding is likely important. Depending on the 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.
Company reputation: Before taking out any loan, consider reading customer reviews on sites like Trustpilot or Better Business Bureau.
While “small” is a relative term, a small personal loan can be thought of as one that's $2,000 or less. Some lenders, like PenFed, offer personal loans less than $1,000. You can get small personal loans from a bank, online lender, or credit union.
Some credit unions offer even smaller loans, called payday alternative loans (PALs). These may have no minimum loan amount, or a $200 minimum loan amount, depending on the type of PAL, with repayment terms up to 12 months. They're especially suitable if you have bad or fair credit and are already a credit union member (or are eligible to be). APRs on PALs are capped at 28%.
Important
Beware of payday loans. These loans are typically $500 or less (maximums vary by state) and repayment is due by your next paycheck. They’re notoriously expensive and considered predatory, which is why they've been banned in several states.
Each lender has its own eligibility criteria for small personal loans. Since the monthly payment on a small personal loan is relatively low, it may be easier to qualify for than a larger personal loan. Most lenders consider the following:
Credit score: Lenders prefer borrowers with good to excellent credit (a FICO score of 670 or above). Some lenders are more lenient, however, and may accept those with fair credit or bad credit, though usually at a higher APR.
Verifiable income: By proving your income through pay stubs or bank statements, you show lenders that you’re able to pay back your small personal loan. A stable income can increase your chances of approval.
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 (including rent or mortgage) by your monthly income before taxes. Most lenders like to see a DTI of 35% or less.
Minimum credit score requirements for small personal loans
Your credit score is based on your payment history, credit utilization, length of credit history, credit mix, and new credit. Each lender looks at your credit score to gauge your ability to pay back a small personal loan, and many have established a bare-minimum credit score number. For instance, Upgrade requires a minimum 600 credit score, while Upstart doesn't have a set minimum (if you apply on its website). Check the lender's minimum credit score requirement before applying.
The FICO credit score ranges are:
Poor (less than 580): Poor or bad credit can make it difficult for you to get approved for a small personal loan, though it may still be possible.
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 and also land 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 small personal loans.
Exceptional (800+): Exceptional credit opens the door to many small personal loans and could help you land the lowest advertised APR.
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.
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 expense completely. You might have to look elsewhere for additional funds, depending on what you qualify for.
May need good credit to qualify: If you don’t have good credit, your options for small personal loans may be limited. Many 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.
Follow these steps to apply for a small personal loan.
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.
Prequalify: Some lenders let you prequalify for a small personal loan without any impact to 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.
Pick a loan option: Choose the loan that makes the most sense for your situation.
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 the lender will conduct a hard credit inquiry.
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.
Cash advance 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. These apps don’t require a credit check, but watch out for fees, such as subscription fees, expedited funds fees, and optional tips. 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” services (BNPL): BNPL lets you to split a purchase into no-interest payments for six weeks, or sometimes terms of 3 to 12 months with interest. The amount you can borrow depends on the provider. As you make regular purchases with the service, and pay off the loan, some companies may raise the amount you can borrow. Some providers also charge fees, such as late fees. BNPL services may or may not impact your credit. Affirm and Klarna are two providers to consider.
Borrowing from friends and family: 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.
Small personal loans are generally flexible. This means you can use them for a wide variety of expenses, including medical bills, car repairs, and vet bills.
Possibly. Some lenders offer small personal loans to borrowers with bad credit. But if you do get approved with bad credit, you’ll likely have a high APR.
Consider adding a cosigner with good credit and a stable income to your application. They may be able to help you get approved or get better terms. They're equally responsible for the loan, which means they'll be on the hook if you miss payments. Not all lenders allow cosigners.
Where can I find a small personal loan?
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Banks, credit unions, and online lenders all offer small personal loans. You may want to also consider a payday alternative loan (available from credit unions) or a short-term loan via a cash advance app (if you can avoid cash app fees and can pay the loan back by your next paycheck).
Anna Baluch is a personal finance writer with more than six years of experience. Her work has appeared on CNN, New York Post, and U.S. News & World Report.
