Where to Find Small Personal Loans in 2020

It’s no secret that money causes stress—especially when you’re short on it. But falling behind on your utility bills, credit cards, and other debts? That also has an additional consequence: It sends your credit score plummeting.

This can mean higher interest rates and fewer financial opportunities down the line. It can even prevent you from buying a car or becoming a homeowner. Fortunately, if you ever find yourself in a financial pinch, you’re not without options.

In fact, small personal loans can be a smart solution, offering flexibility, quick cash and, most importantly, lower interest rates than you’ll find on credit cards. This guide will break down where you can find small loans online, as well as alternatives to small loans you may want to consider.

In this guide:

• Where to find small loans online
• What you need to apply for small personal loans
• How fast you can expect funding
• Other options if you need small short-term loans
• Read this before taking out short-term loans

Where to find small loans online

There are a lot of places you can find small personal loans—both online and off. To help streamline your search, we’ve rated and ranked the best small loan options below.

• Best small loans for under $1,000
• Best $1,000 dollar loans
• Best $5,000 personal loans and up

Best small loans for less than $1,000

If you’re in need of just a small amount of cash, your best bet is your bank or a credit union. Lenders need to cover their administrative costs when loaning out money, and loans of less than $1,000 just don’t offer the returns necessary to do that. Fortunately, there are a few options.

Here are a few of the best options for loans under $1,000.

DCU

DCU, also known as Digital Federal Credit Union, is a New England-based credit union that offers bank accounts, insurance, real estate, and lending services.

In order to apply for a small personal loan from DCU, you must become a member first. Membership is only open to those with certain employers, addresses, and community ties.

• LendEDU rating: 4.40 / 5.00
• Credit score: Not disclosed
• Loan amount: dcu-perl-1068-amountlow
• Interest rates: As low as dcu-perl-1068-fixlow
• Full review: DCU Personal Loan Review

PenFed Credit Union

PenFed is another credit union that offers under-$1,000 dollar loans. Membership is open to U.S. military members and employees of the Department of Defense and Homeland Security.

If you don’t fall into one of these groups, you can qualify by donating to the National Military Family Association or Voices for America’s Troops.

• LendEDU rating: 3.99 / 5.00
• Credit score: Not disclosed
• Loan amount: penfed-perl-109-amountlow
• Interest rates: Start at penfed-perl-109-fixlow
• Full review: PenFed Personal Loan Review

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Best $1,000 personal loan (or higher)

Need a little more cash? $1,000, $2,000, and $3,000 personal loans may be slightly more common, but they’ll still be harder to find than bigger loans. Fortunately, there are at least a couple of options to choose from. Here are the best options depending on your credit history.

If you have good credit: PNC

PNC is a nationwide bank that offers a variety of financial services, including banking, credit cards, mortgage lending, personal loans, and other types of financing. PNC is actually rated as one of our best personal loans for borrowers with good credit.

And because it offers lower loan amounts than other lenders, it takes the top spot on this list. Loans go as low as pnc-perl-1142-amountlow and top out at pnc-perl-1142-amounthigh. The lender charges no origination fees or prepayment penalties.

Though PNC doesn’t disclose its minimum credit scores outright, the bank tends to approve only great-credit customers for loans (think 700 or higher).

• LendEDU rating: 4.75 / 5.00
• Credit score: Not disclosed
• Loan amount: pnc-perl-1142-amountlow
• Interest rates: pnc-perl-1142-fixlow – pnc-perl-1142-fixhigh
• Full review: PNC Personal Loan Review

If you have fair credit: Upstart

If your credit isn’t pristine but it’s still on the good end, Upstart can be a wise choice. The online lender looks beyond your credit report, considering your employment, education, income, and other factors to evaluate your risk and determine borrowing eligibility.

• LendEDU rating: 3.45 / 5.00
• Credit score: upstart-perl-38-mincreditscore
• Loan amount: upstart-perl-38-amountlow
• Interest rates: upstart-perl-38-fixlow% – upstart-perl-38-fixhigh%
• Full review: Upstart Personal Loan Review

If you have bad credit: OneMain Financial

Have bad credit or a blemish on your financial record? Then OneMain Financial is your best bet.

The lender doesn’t weigh credit heavily in its loan application process, and its loan terms span as long as onemainfinancial-perl-51-termlengthhigh_m, giving you plenty of time to make monthly payments and rebuild your credit.

A quick note: OneMain Financial only offers loans as low as onemainfinancial-perl-51-amountlow, so if you’re looking for strictly $1,000, you may be better off applying with Stilt instead.

• LendEDU rating: 5.00 / 5.00
• Credit score: Not disclosed
• Loan amount: onemainfinancial-perl-51-amountlow
• Interest rates: onemainfinancial-perl-51-fixlow – onemainfinancial-perl-51-fixhigh
• Full review: OneMain Financial Personal Loan Review

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Best $5,000 personal loans

If you’re in need of $5,000 or more in cash, then the options are plentiful. The majority of lenders have a minimum loan amount of $5,000, as this ensures they make enough to cover the costs of originating and administrating the loan.

As with other categories, the best lender for your $5,000 personal loan will depend largely on your credit. Here’s what our top-ranked lenders look like for each category.

If you have good credit: LightStream

Online lender LightStream is our No. 1-rated small personal loan for borrowers with good credit. The lender charges no application fees, origination fees, or prepayment penalties, and it bases its interest rates largely on the purpose of the loan.

You can also qualify for an interest rate reduction by setting up autopay.

• LendEDU rating: 5.00 / 5.00
• Credit score: lightstream-perl-44-mincreditscore
• Loan amount: lightstream-perl-40-amountlow
• Interest rates: lightstream-perl-40-fixlow% – lightstream-perl-40-fixhigh%
• Full review: LightStream Financial Personal Loan Review

If you have fair or bad credit

Our ratings show that bad-credit borrowers are best off using the lenders mentioned in the above, $1,000-plus category (OneMain, Stilt). These lenders offer loans up to and beyond $5,000 for qualifying applicants.

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How we rate personal loans

Our personal loan ratings are based on the weighted average of multiple data points, including interest rates, loan amounts, term lengths, Better Business Bureau scores, and more. See information on our full methodology here.

What you need to apply for small personal loans

To apply for a personal loan (no matter what size it is), you’ll usually need to be a U.S. citizen or permanent resident with some form of government-issued I.D. as well as proof of income, address, and other basic personal information. You’ll also need to submit to a credit check.

Here’s a full list of personal loan documentation you can expect to need.

How fast you can expect funding

One of the biggest benefits of personal loans is that they can be approved and issued fairly quickly, especially compared to other forms of financing.

Though it varies by lender and loan amount, you can generally expect to see your loan funded as soon as the next business day to up to a week.

Other options if you need small short-term loans

Small and short-term loans aren’t your only option if you find yourself in financial distress. Here are a few other choices you might consider in a pinch. 

0% APR credit card

We generally don’t advocate for taking on credit card debt, as they come with high interest rates and ultimately cost more in the long run.

If you can find a 0% APR credit card, though, it can be a smart way to cover smaller costs when times get tough. Just make sure you pay off your debt before the no-interest period ends.

Even if the card’s 0% annual percentage rate lasts a full year, you’ll typically want to be confident you can pay off the amount you need within six months if you’re going to avoid costly interest charges and get yourself back on track.

Cash advance apps

If you just need a little bit to get you by until payday, then cash advance apps like Brigit or Earnin may be viable options. These let you borrow cash from upcoming paychecks.

Read this before taking out short-term loans

Think twice before taking out a title loan

Title loans allow you to use your car, motorcycle, or boat title as collateral, so you can borrow cash against it. For many, it seems like an easy way to get cash when you need it, but it also puts your property at serious risk.

If you don’t pay off your loan within the specific period (usually 15 to 30 days), then the lender can seize your vehicle, which may then disrupt your ability to work and earn additional income.

Title loans also come with extremely high interest rates and can lead to an ongoing cycle of debt if you’re not careful. For these reasons, the unsecured personal loans (i.e., no collateral) above are the best option for most people. 

Beware of payday loans

Another type of loan to steer clear of is the payday loan. These offer small lump-sum loan payments that the borrower agrees to repay once their next paycheck (or pension or Social Security check) is received.

Like title loans, payday loans often come with sky-high interest rates as well—sometimes reaching 1,000% APR.

Payday loans are not permitted in every state.

The bottom line: Find the small personal loan that works for you

If you’re in need of quick cash to pay a bill or just get by, you have options—but not all of them are equal. Consider our top-ranked personal loans before looking toward payday or title loans, and be sure to shop around for the best rates and terms.