How to Get a $1,000 Personal Loan: Top Lenders and Rates in 2025, and Alternatives to Consider

A $1,000 personal loan can help cover unexpected expenses, consolidate debt, or manage short-term financial needs. Many lenders offer loans in this amount, but interest rates, fees, and approval requirements vary. While personal loans are typically unsecured, factors like credit score, income, and debt-to-income ratio affect eligibility and loan terms.

We’ve researched and identified the top three lenders for a $1,000 personal loan, ensuring they are legitimate and reliable. Before borrowing, compare lenders to find the best rates and repayment terms. If a personal loan isn’t the right fit, alternatives like 0% APR credit cards or earned wage access may be worth considering.

The best $1,000 personal loans

If you need to borrow $1,000, you might be tempted to take out a payday loan—don’t. Payday loans often come with sky-high interest rates and short repayment periods that can trap you in a cycle of debt.

Instead, consider these personal loan options, which offer more reasonable terms and lower costs—even if you don’t have perfect credit.

Credible

Best Marketplace

5.0 _/5

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Why it’s one of the best

Credible is our favorite marketplace for comparing personal loans because of its straightforward and efficient process, which allows users to find the best loan options. We also like the platform for its transparency. Users can easily compare loan terms from various lenders without worrying about hidden fees. 

For individuals valuing time and ease of use, Credible is an exceptional choice. The platform’s ability to aggregate offers from multiple lenders in one place not only saves time but also ensures borrowers can make quick, informed decisions.

• Trusted by thousands of borrowers
• Allows comparison of multiple lenders at once
• No hidden fees

Rates (APR)	7.49% – 35.99%
Loan amounts	$1,000 – $200,000
Repayment terms	1 – 10 years

Upgrade

Best for Fair Credit

4.9 _/5

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Why it’s one of the best

Upgrade is a terrific option if you have a FICO credit score in the 580 to 669 range. It presents an opportunity to obtain a loan at fair rates. This inclusivity is a significant advantage, making Upgrade a viable option for a wider range of borrowers. 

Beyond lending, Upgrade’s free credit monitoring service is a standout feature, offering borrowers tools to understand and improve their credit scores over time. The addition of hardship plans underscores Upgrade’s commitment to supporting borrowers during financial difficulties, highlighting its role not just as a lender but as a financial partner.

Upgrade charges an origination fee, which is standard for borrowers with less-than-stellar credit. But if you have a credit score of 670 or better, you might be able to avoid an origination fee altogether by applying with a lender that targets good-credit borrowers. 

• Accepts borrowers with fair credit
• Provides free credit monitoring
• Offers hardship plans

Rates (APR)	8.49% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years

Upstart

Best for Thin Credit

4.8 _/5

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Why it’s one of the best

Upstart is a revolutionary lending platform that offers more than just traditional credit evaluations, making it an excellent choice for those with minimal credit history. By considering a borrower’s education and employment background, Upstart acknowledges the potential beyond what a credit score can show. 

This broader assessment approach can benefit those who are new to credit or have been disadvantaged by conventional credit scoring methods. Quick funding times enhance the appeal, providing financial relief when it’s needed most.

The absence of prepayment penalties affords borrowers the flexibility to manage their loans without extra costs, further solidifying Upstart’s position as a forward-thinking and borrower-friendly platform. Like Upgrade, Upstart charges an origination fee.

• Considers education and job history in addition to credit
• Quick funding, often within a business day
• No prepayment penalties

Rates (APR)	7.80% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	3 – 5 years

How much does a $1,000 personal loan cost?

The cost of a $1,000 personal loan depends on several factors, including your credit score, income, debt-to-income (DTI) ratio, and the lender you choose. While many lenders offer personal loans in different amounts—some up to $100,000—your approved loan amount and terms will be based on your financial profile.

Your loan’s annual percentage rate (APR) determines how much you’ll pay in total. It includes:

• Interest rate: The cost of borrowing money.
• Risk assessment: Lenders evaluate your credit history and financial situation to determine how risky it is to lend to you. Higher-risk borrowers get higher APRs.
• Origination fees: Some lenders charge fees to process and set up the loan.

These are all factored into your annual percentage rage (APR) and increase your overall cost.

Most lenders allow you to prequalify for a personal loan. This means you can check potential loan terms without affecting your credit score. Prequalification shows estimated rates and terms, helping you compare options before committing.

When comparing offers, look at the APR, loan term, and total repayment amount to ensure you’re not taking out a predatory loan. Predatory lenders often charge excessive APRs (sometimes 100% or more) and use aggressive sales tactics. Stick to reputable lenders with transparent terms, reasonable fees, and no pressure to borrow.

What are the payments on a $1,000 personal loan?

Several factors affect the payments on a $1,000 personal loan. For instance, a higher interest rate means paying more over the life of the loan and potentially higher payments. A longer loan term can result in smaller payments (but more interest).

Here are two examples of $1,000 loans with different rates and terms:

	Loan 1	Loan 2
Terms	12 months	36 months
Interest rate	12%	15%
Monthly payment	$88.85	$34.67
Total interest	$66.19	$247.95

Loans with longer terms often have higher interest rates because this can increase the chance you won’t be able to pay the loan back. The second loan’s payment is much lower, but it results in far more interest.

How can I repay a $1,000 personal loan quickly?

Repaying a $1,000 personal loan is straightforward, assuming you have the money to cover at least the minimum payment. For a loan this size, the typical repayment lasts a few months to a few years. Payments are often fixed at regular monthly intervals.

“Fixed” means the minimum amount you must pay will remain the same for the life of the loan. In other words, the payment will be the same every month unless you decide to pay more. Each payment will cover a portion of the original loan amount plus interest.

Here are a few ways to potentially pay less overall on a personal loan:

• Pay more than the minimum. Paying more than the minimum amount will reduce the loan balance and the amount of interest you pay. Some lenders don’t allow extra payments, but it’s smart if you can do it.
• Round up. Every time you pay, consider rounding up to the nearest $10 or $20 (if your lender allows it). These small increases can reduce your interest payments.
• Put windfalls toward loan payments. Again, if your lender allows extra payments, put windfalls, such as tax refunds and bonuses, toward your loan. This will result in less interest.

As you may have noticed, the common theme is to pay more than the minimum. This is often the best way to save with a personal loan.

How to get a $1,000 personal loan 

A $1,000 personal loan can be useful for many purposes, but not everyone will qualify. Ideally, you should have a good credit score (at least 670 on FICO’s scoring model), which demonstrates responsible credit use.

A higher income and lower debt-to-income (DTI) ratio can also help you qualify. The goal is to show the lender that you’re a responsible borrower who can repay the loan. While there are no strict rules, stronger financial numbers will improve your chances of approval and help you secure better terms.

To get a $1,000 personal loan, follow these steps:

1. Check your credit score. First, check your credit score to ensure you’re at least within striking distance of the “good” range (670+ on FICO). A higher score increases your chances of approval and may get you a lower interest rate. Many banks and credit card issuers offer free credit score access.
2. Prequalify with lenders. Many lenders allow you to prequalify for a loan with a soft credit check, which won’t impact your credit score. Prequalification helps you estimate rates and terms before formally applying, so you can compare offers and avoid surprises.
3. Shop around. Look for personal loan offers from multiple lenders, including banks, credit unions, and online lenders. The lenders mentioned in this article are a great starting point. Compare interest rates, fees, repayment terms, and eligibility requirements before choosing the best option.
4. Choose a lender and apply. Once you’ve compared your options, select the lender with the best offer and submit a formal application.
5. Receive approval. The lender will review your application, check your creditworthiness, and may request additional documents. If all goes well, you’ll receive an approval decision.
6. Review loan terms and sign. Carefully review the final loan offer, including the interest rate, loan amount, repayment terms, and any fees. Your final terms may differ from the prequalification quote.

Once you sign the agreement, your loan funds will typically be deposited into your bank account within a few business days. Some lenders offer same-day funding.

Pros and cons of a personal loan for $1,000 

Borrowing $1,000 with a personal loan can be useful for many purposes. However, like all forms of lending, it has pros and cons.

Pros

• Can be easier to qualify for than other forms of credit

• Usually few restrictions on how you can use the money

• Fixed payments result in a predictable repayment schedule

• Potential to help build credit

Cons

• Interest rates can be higher on smaller loans, leading to a high borrowing cost relative to the principal

• Some lenders charge origination fees, processing fees, and other fees that can increase the cost to borrow

• The ease of taking out a personal loan can make it tempting to overspend, leading to a debt cycle

• Some lenders have minimum loan amounts above $1,000

A personal loan can be an excellent way to borrow $1,000. If you need quick access to a smaller amount, have good credit, and earn the income to repay it, this could be the right option.

Remember that any lending product can lead to a debt cycle if you can’t pay, and it could damage your credit history. Weigh the pros and cons before proceeding.

Other ways to borrow $1,000 

Personal loans can be useful, but they aren’t the only way to borrow $1,000. You might consider these alternatives in some situations, such as when you want to avoid interest.

Here are a few possibilities:

• 0% introductory APR credit cards: If you have good credit, you may qualify for a 0% introductory APR card. This period can sometimes last almost two years, allowing you to repay the balance interest-free during that time.
• Cash advance apps: Many cash advance apps offer small salary advances that you repay out of your next paycheck. This can help you access the cash you need quickly, though some apps charge optional fees or tips that can add up.
• Earned wage access apps: (EWA) Earned wage access apps let you access your earned but unpaid wages before your scheduled payday. Unlike traditional loans, there’s no interest, but some apps charge withdrawal fees or subscription costs. Employers sometimes offer EWA as an employee benefit, which can reduce or eliminate fees. If your employer provides this service, it can be a low-cost way to cover an urgent expense.
• Borrow from friends or family: One way to get quick access to cash is to borrow from friends or family. This can result in little to no interest, but it can strain relationships if you can’t pay them back.

If you can’t qualify for a personal loan on your own, one potential option is to use a cosigner or co-borrower. With this arrangement, someone with good or excellent credit signs on to the loan, which can help you qualify.

However, keep in mind that the cosigner is legally responsible for the loan. If you miss a payment, it will damage both your credit and theirs. If your cosigner is a friend or family member, it’s similar to borrowing money from them. In either case, failing to repay can strain your relationship.

FAQ 

What is the minimum credit score required to qualify for a $1,000 personal loan?

The minimum credit score required may vary by lender. However, a credit score of 580 or higher can be sufficient for a $1,000 personal loan from several lenders. Remember, the higher your credit score, the better your terms are likely to be.

Can I apply for a personal loan if I’m self-employed or have irregular income?

Yes, you can. While traditional income sources can make the process easier, it’s possible to get a loan if you’re self-employed or have irregular income. You just might need to provide additional information or documentation.

How long does it take to receive the funds once I’m approved for a personal loan?

Once approved, most lenders can deposit a personal loan into your bank account within a few business days. Some might even offer instant funding.

Are there any restrictions on how I can use a personal loan?

Generally, personal loans can be used for a wide range of purposes. However, it’s always wise to check with lenders for any specific restrictions.

What happens if I miss a payment on my personal loan?

Missing a payment can result in additional fees, increased interest rates, and harm to your credit score. If you’re having trouble making payments, contact your lender as soon as possible.

Can I pay off my personal loan early, and are there any penalties for doing so?

It’s rare, but some lenders might charge a prepayment penalty for paying off a loan ahead of schedule. Check with your lender for its specific policies.

How do lenders determine the interest rate and terms for a $1,000 personal loan?

Interest rates and terms for personal loans, including the amount you can borrow, are based on factors such as your credit score, income, loan term, and the lender’s current rates.

Is it better to borrow $1,000 from an online lender, bank, or credit union?

Some credit unions may offer lower interest rates on personal loans than larger banks, especially for borrowers without perfect credit. Personal loan rates through credit unions are capped at 18.00% APR, so if online lenders are quoting you higher rates, check to see if you’re eligible to join a credit union in your area.

Online lenders, on the other hand, often provide faster approvals and funding, sometimes as soon as the same day. They also tend to have more flexible credit requirements, making them a good option if you have fair or limited credit but need quick access to cash. However, they may charge higher APRs, especially for lower-credit borrowers.

Traditional banks may offer competitive rates to existing customers but often have stricter lending requirements and slower funding times than online lenders. If you have an established relationship with a bank, it’s worth checking their offers, but you may find faster or more accessible options elsewhere.

Ultimately, the best option depends on your credit score, income, and how quickly you need the funds. If you qualify for a lower rate at a credit union, that may be your best bet. If you need fast funding or have less-than-perfect credit, an online lender might be the better choice.

How we chose the best lenders offering $1,000 personal loans

Since 2017, LendEDU has evaluated personal loan companies to help readers find the best personal loans. Our latest analysis reviewed 1,029 data points from 49 lenders and financial institutions, with 21 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.