A $5,000 personal loan can help you cover a variety of expenses. You can get a $5,000 loan from a bank, credit union, or online lender.
Depending on the lender you borrow from and when you apply, you might be able to get your funds as soon as the same day of approval.
- How to get a $5,000 personal loan
- Lenders that offer small personal loans
- How to apply for small personal loans
- Alternatives financing options to consider
- Frequently asked questions
How to get a $5,000 personal loan
If you’re in need of a $5,000 personal loan, follow these four steps.
- Check your credit. Before you apply, find out where your credit stands. Visit AnnualCreditReport.com to pull free copies of your credit reports from Equifax, Experian, and TransUnion. Dispute any errors or inaccuracies with the appropriate credit bureau to potentially boost your credit score.
- Shop around and compare your options. Do some research to find lenders that offer $5,000 personal loans. Be sure to compare interest rates, repayment terms, and fees so you can hone in on the best loan for your unique situation.
- Fill out an application. Once you find a $5,000 loan, visit the lender’s website to apply. Be prepared to share basic personal and financial information. You might also have to submit documents like your pay stubs and bank statements.
- Get your funds. After you accept a loan offer, the lender will release your funds, usually via direct deposit. The time to fund for personal loans can range from as soon as the same day you get approved to one week.
Lenders that offer small personal loans
If you’re looking for a $5,000 personal loan, consider these Credible partner lenders:
Avant
Avant offers personal loans ranging from $2,000 to $35,000 with flexible repayment terms ranging from two to five years.
Loan amount: $2,000 to $35,000
Rates: 9.95% to 35.95% APR
Terms: Two to five years
Special requirements: Minimum credit score of 580, income and employment verification
Best Egg
Best Egg is an online lending platform that has originated more than $14 billion in personal loans to over million borrowers. You can use its loans for a variety of purposes, such as debt consolidation and home improvement.
Loan amount: $2,000 to $50,000
Rates: 8.99% to 35.99% APR
Terms: Two to five years
Special requirements: Minimum credit score of 640, income verification
Discover
Discover offers personal loans from $2,500 to $35,000 with repayment terms from three to seven years. If you’re approved for a Discover personal loan, you could get your funds as soon as the next business day.
Loan amount: $2,500 to $35,000
Rates: 6.99% to 24.99% APR
Terms: Three to seven years
Special requirements: Minimum credit score of 660, minimum $25,000 household income
Happy Money
Formerly known as Payoff, Happy Money specializes in personal loans for borrowers who want to consolidate high-interest credit card debt. Happy Money offers loans up to $40,000.
Loan amount: $5,000 to $40,000
Rates: 7.99% to 29.99% APR
Terms: Two to five years
Special requirements: Minimum 640 credit score, three years of established credit
LendingClub
LendingClub is a peer-to-peer lending company with loans from $1,000 to $40,000. LendingClub is one of the few lenders that allow cosigners on personal loans, and you can get your funds as soon as two business days after approval.
Loan amount: $1,000 to $40,000
Rates: 8.05% to 36% APR
Terms: Three to five years
Special requirements: Minimum 600 credit score
LendingPoint
LendingPoint provides loans from $2,000 up to $36,500. With a LendingPoint loan, you can get funded as soon as the next business day.
Loan amount: $2,000 to $36,500
Rates: 7.99% to 35.99% APR
Terms: Two to six years
Special requirements: Minimum 580 credit score, minimum $35,000 annual income, verified bank account
LightStream
LightStream is an online lending division of Truist Bank. With LightStream, you can borrow $5,000 up to $100,000 and receive your funds as soon as the next business day.
Loan amount: $5,000 to $100,000
Rates: 5.99% to 23.99% APR
Terms: Two to seven years (12 years for home improvement loans)
Special requirements: Minimum credit score of 660, income and employment verification
Marcus
Marcus by Goldman Sachs offers online personal loans ranging from $3,500 to $40,000. With a Marcus personal loan, you won’t be faced with any origination fees, late fees, or prepayment penalties.
Loan amount: $3,500 to $40,000
Rates: 6.99% to 24.99% APR
Terms: Three to six years
Special requirements: Minimum 660 credit score
OneMain Financial
OneMain Financial specializes in loans for borrowers with less-than-perfect credit. They have no minimum credit score, and you can get your funds as soon as one to two business days if you’re approved.
Loan amount: $1,500 to $20,000
Rates: 18% to 35.99% APR
Terms: Two to five years
Special requirements: OneMain looks at your net income, outstanding debts, and personal living expenses to determine your eligibility for a loan
PenFed
PenFed Credit Union offers personal loans for borrowers with good to excellent credit. You can borrow as little as $600, which can be a good option if you only need a small loan. You don’t have to be a PenFed member to apply, but you’ll need to join the credit union if you’re approved and want to accept the loan.
Loan amount: $600 to $50,000
Rates: 7.74% to 17.99% APR
Terms: One to five years
Special requirements: Minimum 660 credit score, must join the credit union to receive loan funds
Prosper
Prosper is a peer-to-peer lending platform that matches borrowers with investors. Prosper personal loans range from $2,000 to $40,000 with three to five year repayment terms.
Loan amount: $2,000 to $50,000
Rates: 6.99% to 35.99% APR
Terms: Two to five years
Special requirements: Minimum 640 credit score, verified income
Reach Financial
Reach Financial provides personal loans to borrowers who want to consolidate or refinance their debts. Reach is known for flexible repayment terms, customizable monthly payments, and free credit score monitoring.
Loan amount: $3,500 to $40,000
Rates: 5.99% to 35.99% APR
Terms: Two to five years
Special requirements: Minimum 660 credit score, minimum $1,000 monthly income
SoFi
SoFi offers personal loans from $5,000 to $100,000 with repayment terms from two to seven years. SoFi doesn’t charge any fees, and you can get your funds as soon as the same day of approval.
Loan amount: $5,000 to $100,000
Rates: 7.99% to 23.43% APR
Terms: Two to seven years
Special requirements: Verified employment and income
Universal Credit
Universal Credit offers personal loans from $1,000 up to $50,000 with repayment terms from three to five years. Universal Credit works with borrowers with fair credit and you can receive your funds as soon as one day of clearing verifications.
Loan amount: $1,000 to $50,000
Rates: 11.69% to 35.93% APR
Terms: Three to five years
Special requirements: Minimum credit score of 560, verified bank account
Upgrade
Upgrade provides personal loans from $1,000 to $50,000 with repayment terms from two to seven years. You can get your funds as soon as one day after approval, and there are no prepayment penalties if you want to pay off your loan early.
Loan amount: $1,000 to $50,000
Rates: 7.96% to 35.97% APR
Terms: Two to seven years
Special requirements: Minimum 560 credit score
Upstart
Upstart offers loans from $1,000 to $50,000 and can be used for a variety of purposes, like debt consolidation, medical bills, and moving expenses.
Loan amount:$1,000 to $50,000
Rates: 6.5% to 35.99% APR
Terms: Three to five years
Special requirements: Minimum 580 credit score, verified income or proof of employment
How to apply for small personal loans of $5,000
If you’re ready to apply for a $5,000 personal loan, follow these five steps:
- Check your credit score. Before you apply for a personal loan, it��s a good idea to check your credit. You can get a free copy of your credit report from each of the three major credit bureaus — Equifax, Experian, and Transunion — from AnnualCreditReport.com. Be sure to check for any errors, such as closed accounts that are reported as open, and dispute them with the appropriate bureau to potentially improve your score.
- Compare lenders. When you’re looking for a $5,000 personal loan, make sure to shop around and compare as many lenders as possible. Consider not only interest rates, but also repayment terms and any additional fees the lender charges.
- Get prequalified. After shopping around, it’s a good idea to get prequalified with multiple lenders. Lenders will perform a soft credit pull to determine your loan eligibility and what rates to offer you. Getting prequalified for a personal loan will give you an idea of the rates and terms you qualify for — without affecting your credit.
- Submit an application. Once you’ve gotten prequalified and picked a lender, it’s time to submit an application. You’ll be asked to include basic information such as your name and address, as well as financial information such as tax returns or recent pay stubs. Lenders will consider your credit in addition to other factors such as your debt-to-income ratio and employment to decide if you’ll be approved for a personal loan.
- Receive your funds. After you’ve been approved and accepted your loan, the lender will release your funds to your bank account. This process can take anywhere from one to two days after approval to up to a week.
Alternatives to small personal loans
If you decide that a $5,000 personal loan isn’t right for you, here are some alternative options to consider.
Credit cards with 0% APR promotions
Some credit cards offer promotional 0% APR periods. These cards let you make purchases and repay them without interest during a promotional period, which is usually between six to 18 months. Once the promotional period ends, you’ll be charged a regular APR. Typically, you’ll need good credit to qualify for a credit card with a 0% APR promotion.
Credit card cash advance
A credit card cash advance is a short-term loan you get from your credit card company. Instead of using your card to buy products and services, you borrow against its limit and get cash. You can take out a credit card cash advance at a bank or ATM. You’ll have to pay a high interest rate, a cash advance fee, and a potential ATM withdrawal fee.
Borrow from family or friends
If you need fast cash, a friend or family member might be willing to lend it to you with low or no interest. You can create your loan agreement with a set repayment term and put it in writing so that everyone is on the same page. Just make sure you back your loan as you agreed to or you may damage your relationship.
Buy Now, Pay Later apps
Buy Now, Pay Later apps let you split your online and in-store purchases into equal installments. Typically, you’ll pay each installment every two weeks until you’ve paid off your purchase completely. In some cases, you won’t pay interest as long as you make your payments on time. For some Buy Now, Pay Later lenders, you’ll be on the hook for interest and other charges that can increase your overall cost of borrowing.
Frequently asked questions about small personal loans
How much would a $5,000 loan cost per month?
The cost of a $5,000 loan will depend on your interest rate, repayment term, and any fees the lender charges.
For a $5,000 loan with a 15% interest rate and a three-year repayment term, your monthly payments would be $173 and you’d pay $1,240 in interest for a grand total of $6,239.
Does getting a small personal loan hurt your credit?
A small personal loan will hurt your credit if you miss payments or don’t pay them on time. But making consistent, on-time payments can help improve your credit over time.
What is the smallest personal loan you can take out?
Most personal loan lenders offer loans that start from $1,000 to $5,000.
What is the minimum credit score for a $5,000 personal loan?
The minimum credit score for a $5,000 loan depends on the lender and their unique eligibility requirements, but a score of 600 is standard.
Can you get a $5,000 loan online?
Many lenders let you apply for and receive a $5,000 loan online from the comfort of your own home or office.