Where can I get a small personal loan?

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You can get a personal loan from a bank, a credit union or an online lender. The key to getting a personal loan is to do your research, both on the loan providers and the terms of their offers. WalletHub makes it easy to compare personal loans and has user reviews for lenders big and small. Once you’ve decided on the right loan for you, WalletHub can bring you directly to its secure online application.... read full answer

Below, you can get to know the major players and see where most other consumers have gotten their personal loans.

Popular Personal Loan Companies:

American Express

Avant

Discover

LendingClub

Lightstream by SunTrust Bank

Marcus by Goldman Sachs

Prosper

SoFi

Wells Fargo

Before applying for a personal loan, you may also want to check for pre-qualification. If you are pre-qualified for a personal loan, your chances of actually being approved are very high but not guaranteed. Pre-qualification uses a harmless soft inquiry while actually applying for a loan triggers a hard inquiry that may temporarily lower your credit score. You can use WalletHub’s free tool to check your pre-qualification status with multiple lenders at once.

On that note, your credit score will affect where you can get a personal loan. Big banks tend to offer loans to people with good or excellent credit. Credit unions, which have a more personal connection with their clients, are more likely to offer personal loans to applicants with lower scores. Online lenders are the newest players, and some of them offer bad credit loans as well.

Now that you know where to get a personal loan, it’s also important to take note of where NOT to get a personal loan – a payday lender. Payday loans go by many names, including payday advances, payroll loans and cash advance loans. With this type of loan, the lender lets you borrow money against your next paycheck. Since payday loans are short-term, the finance charges are incredibly high to ensure the lender makes money. Lenders usually charge a fee on the borrowed amount that is equivalent to an APR of over 300%-600% in most cases. It’s best to avoid these types of loans altogether.

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Answer 1 · 2019-08-27 11:21:03

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Adam McCann, Financial Writer

@adam_mccann • 08/27/19 This answer was first published on 08/27/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You can get a small personal loan from a bank, credit union or online lender. Friends and family are an option, too, especially since many traditional lenders don’t give out personal loans of less than $5,000-$7,500. But there are some notable exceptions. You can get small personal loans with reasonable APRs from Citibank ($2,000+), LendingClub ($1,000+) and Prosper ($2,000+). And there are plenty of other lenders that also offer loans as small as $1,000 - $2,000. You just need to know where to look.

The first major place where you can get a small personal loan is a bank. Banks let you inquire about small personal loan options in person. Their maximum APRs often don’t exceed 25%, and the minimums can be as low as around 6%. Some good banks that offer small personal loans include Discover (min. $2,500) and TD Bank (min. $2,000).

The next option is credit unions, which are similar to banks but have specific requirements for membership usually related to living/working in a certain area. Federal credit unions are required to cap their interest rates at 18%, and state credit unions have similar caps that are set by the state. The minimum APRs can be as low as around 6%. Use WalletHub’s credit union finder to see which credit unions in your area you might qualify to join.

Finally, some personal loan providers operate exclusively online. Their APRs generally range from 6% to 36%, though individual lenders may have higher minimums or lower maximums. Online lenders tend to offer very quick decisions. Some good options include Avant (min. $2,000) and Best Egg (min. $2,000).

In general, it’s difficult to find any major lenders that will give a personal loan of less than $1,000. Ask local financial institutions if they’ll provide a smaller loan, or try borrowing from a friend or family member. Alternatively, you could just put the expense on a credit card, assuming you have a high enough limit.

Where can I get a small personal loan?

Adam McCann, Financial Writer

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