If you need a little extra cash for an unexpected expense, a personal loan could be a good option. These loans are typically available quickly, can be deposited directly into your bank account, and you can usually pay them back with fixed monthly payments that you can plan for.
It may be difficult to find a lender that offers loans for such a relatively small amount — but they’re available. Here’s where to find a $1,000 personal loan, how to apply for one, and the credit score you typically need to qualify.
Personal loan lenders have multiplied as the industry has grown. Today, you can find a personal loan from a variety of online lenders, as well as some brick-and-mortar banks and credit unions.
Lenders like SoFi, Upstart and Prosper offer the ability to take out a personal loan in a short period of time, completely online. You’ll typically go through a credit check and have the money deposited into your account within a few business days if you’re approved.
It’s a good idea to evaluate loan offers from several different lenders to find the one with the lowest interest rate and fewest fees. Even a small difference in interest rate can save you hundreds of dollars in interest over the life of the loan. With Credible, you can compare personal loan rates from multiple lenders without affecting your credit.
Not all banks or credit unions offer personal loans, and among those that do, you may have a challenge finding one to loan you a small amount. But you may also be able to get a $1,000 personal loan by walking into a traditional financial institution, like a bank or credit union, and applying in person. If you’re an existing customer with a particular bank, you might be eligible for an interest rate discount.
Some banks and credit unions have robust online personal loan businesses similar to the ones mentioned above, including LightStream (part of Truist Bank), Marcus by Goldman Sachs and PenFed Credit Union.
Personal loans can often be deposited to your bank account within a few business days after final approval. You can also find a personal loan lender that can get you your cash as soon as the next business day.
To make sure you get your money as soon as possible, be on alert to answer any questions your lender has about your finances to keep the formal approval process moving along.
Credible lets you view your prequalified personal loan rates in minutes.
While they aren’t as common, some lenders even offer same-day personal loans. Same-day are intended to deliver their funds to you on the same day that you apply for them. They are also known as emergency loans and are excellent sources for funds when you need them quickly.
When considering same-day loans, evaluate the reputation of a lender. While there are trustworthy lenders that offer same-day loans, there are far more that offer predatory payday loans. Payday loans, for example, present the same benefit as a same-day loan: quick access to funds. However, payday loans typically have exorbitant fees and triple-digit interest rates, and are expected to be repaid in a short period.
Getting a $1,000 loan is a fairly straightforward process. Here are the steps you should take:
Many personal loan lenders have a minimum credit score required to qualify for their loans. This score varies from lender to lender, but better scores will generally give you access to more loan offers — and the offers will typically have lower interest rates and fewer fees. Your credit score generally ranges from 300 to 850, with higher numbers representing better scores.
Beyond repaying the amount you borrow, you’ll pay for your personal loan in two different ways: interest and fees.
Interest is an expense you pay to the lender in exchange for borrowing money. Higher interest rates mean you pay more money to the lender. Interest rates are often expressed as an annual percentage rate, or APR. A loan’s APR takes into account both the interest and any fees, so this is a more accurate figure to look at when comparing personal loan offers.
Many personal loans also come with fees, which are one-time charges you pay the lender. One of the most common personal loan fees is an origination fee, or a percentage of the loan amount you pay in exchange for the loan. Origination fees can range from 1% to 8% of the loan amount or higher — meaning a fee of $10 to $80 on a $1,000 loan. This fee is typically taken off the top, reducing the amount you actually receive.
Making late payments may also cause you to incur a late fee. You can also be charged an insufficient funds fee if your bank account doesn’t have enough money to cover your monthly loan payment.
The best personal loans won’t come with origination fees, and some don’t have any fees at all.
Your monthly payment on a $1,000 loan will depend on the interest rate you receive and your repayment term. The lower your rate, the less your monthly payment will be. Also, the longer your loan term, the lower your monthly payment will be — though you’ll end up paying more in interest in the long run.
If you have good credit, and qualify for a 10% interest rate, here are some examples of what your monthly payment could look like:
With fair credit, you may pay a much higher interest rate — say, 17%.
If you’re ready to apply for a $1,000 personal loan, visit Credible to compare personal loan rates from various lenders, all in one place.
Here are some answers to commonly asked questions about personal loans.
Many personal loan lenders advertise that their applications take just a few minutes and offer instant decisions. This may be true, but it generally takes a bit longer until you actually get the money you’ve borrowed. Some lenders are able to get your money to you the next business day, though it can take a few business days in many cases.
Personal loans have few restrictions on what you can use them for. Many people use personal loans to consolidate high-interest debt, like credit cards. You can also use a personal loan to cover an unexpected or emergency expense like a car repair bill, to pay for a wedding or vacation, or to pay off medical debt.
You’re generally not allowed to use a personal loan for any illegal activity, gambling, or to pay for education expenses.
Eligibility requirements can vary from lender to lender, but to be eligible for a personal loan, you generally must:
Some lenders charge prepayment penalties for zeroing your loan balance before your loan term expires. However, prepayment penalties aren’t common with personal loans. Research your lender’s fees as well as its terms and conditions to avoid unwanted costs.
By repaying a personal loan early, you can: