Need a $10,000 Personal Loan? (2024)

If you're wondering how to get a $10,000 loan, it’s a good idea to research the options that could be available to you from different lenders. A low-interest personal loan can help with emergency expenses or other big-ticket expenses you might need some extra cash for.

When deciding on the best personal loan for your situation, you should consider how much you need, the monthly payment you can afford, and the interest rate you can qualify for.

Where to get a $10,000 personal loan

Here are online lenders, banks, and credit unions that offer personal loans and the limits on how much they will lend:

Online lenders

You can look for a loan from online lenders anytime. Whether you’re looking for a $1,000 loan or a $100,000 loan, you're usually able to find what you need online.

If you're looking for a fair-credit personal loan, you have options. But remember that interest rates for borrowers with better credit can be significantly lower than those with poor credit.

Also, if you've been turned down by traditional lending institutions, you might have better luck getting approved by online lenders, who sometimes use alternative methods of evaluating borrower risk. For one, online lenders will typically want to see proof of income and length of employment.

Another perk of an online lender is that you could get your money sooner. The money might even be available to you within 24 hours or less of approval.

You can compare prequalified rates from all of Credible's partner lenders in the table above by filling out one form only (instead of a form for each). Just remember that prequalification is not an offer of credit, and your final rate may differ. Formally applying for a loan will also trigger a hard credit inquiry that could temporarily ding your credit score.

Banks and credit unions

Banks and credit unions also offer personal loans, along with checking, savings, and other secured and unsecured loans. They may also offer funds through a line of credit, which can be revolving.

The limits vary from institution to institution, but banks and credit unions are often willing to accommodate you. Wells Fargo, for example, says it will lend from $3,000 to $100,000. Most banks do not include a prepayment penalty, although there might be an origination fee.

The interest rates are usually fixed and are often some of the lowest available, with a specific payment over the life of the loan. Another plus is that your personal bank might offer loyalty or relationship discounts if you already have an account with them. For instance, you can get short-term flex loans from Wells Fargo if you’re already a customer.

A good rule of thumb — if you're seeking to minimize the long-term cost — is to select a loan with the biggest monthly payment and the shortest repayment term (as well as the lowest APR) you can afford. By doing so, you’ll pay less interest over the life of the loan, thereby reducing your overall costs.

Compare Personal Loans

Learn More: Low-Income Personal Loans: How and Where To Get One

Personal loan requirements

Lenders require certain information and documents to verify your identity, income, and ability to repay the loan. In general, this is what you can expect to provide:

• Basic identifying information: Most applications will require that you provide your full name, date of birth, and Social Security number.
• Employer and income verification: Lenders want to be sure of your ability to pay back the loan in full. One way they determine this is to verify your income and employer information. Providing pay stubs and W-2s are common ways that lenders verify employment. However, if you are self-employed, other documents may be required, such as banking statements and/or 1099s.
• Minimum credit score: Some lenders require a minimum credit score to approve your personal loan application, while others are more flexible.
• Debt-to-income ratio (DTI): In general, it’s good to keep your debt-to-income ratio below 35%. If your DTI is higher than that, consider paying off your debts before applying for a personal loan.

Learn More: Personal Loan Requirements: What To Know

What to consider when comparing loans

If you're considering multiple $10,000 personal loan options, here's what you should research before making a decision:

1. APR
2. Fees
3. Repayment term
4. Monthly payment and total cost

1. APR

The annual percentage rate (APR) is the main thing to consider when borrowing money. This is how much it will cost to borrow money, and accounts for the interest rate as well as upfront fees (if there are any). Typically, the shorter the loan term, the lower the APR offered by most lenders.

You should also decide if a fixed- or variable-rate loan is best for your situation. Not all personal loan lenders offer both, but some do.

Learn More: APR vs. Interest Rate on a Personal Loan

2. Fees

The next thing to look out for is fees. Origination fees, for one, are taken out of your loan proceeds before you even see them (these are reflected in the APR), which means you could get less than you applied for from a lender that charges an origination fee.

Also, comb the fine print and ask your lender about any prepayment penalties, which are charged at the end of your loan if you decide to pay it off early. Prepayment penalties aren't factored into your actual APR because you might not have to pay them. Few lenders charge prepayment penalties; for example, Credible's partner lenders don't charge prepayment penalties.

3. Repayment term

Your repayment term is the amount of time you have to pay back the money you've borrowed. The cost to repay the loan depends not only on the loan amount you borrow and at what interest rate, but on how long you take to repay your loan.

4. Monthly payment and total cost

Another consideration should be your monthly payment. You should make sure a personal loan will fit into your budget. If it seems that the monthly payment will eat up too much of your paycheck, you can look at loans with longer repayment terms.

If you stretch your payments out over seven years instead of five, you'll make 84 payments instead of 60, so each payment will be smaller. Just remember that the longer the repayment term, the higher the interest rate and total repayment costs will be.

Getting a $10,000 loan with bad credit

Having bad credit does not automatically disqualify you from getting a $10,000 personal loan.

However, borrowers with poor credit can often expect higher APRs. A cosigner with good credit or securing the loan with collateral can help you get approved with more favorable rates.

Here’s what you need to do to apply for a $10,000 personal loan with bad credit:

1. Check your credit score: Check your FICO credit score so you can be realistic about your loan options. Eliminate any lenders that have a minimum credit score requirement higher than yours. (Check out lender minimums in the table above, though some lenders have different minimums on their website than they accept through marketplaces.)
2. Consider a cosigner: If your credit score is poor, a cosigner with a good score can help you get approved for a loan. Just note that only a handful of lenders offer personal loans with a cosigner, including OneMain Financial, BHG Money, PenFed, Navy Federal, and Achieve. Also, note that the cosigner is equally responsible for loan repayment — even late payments could hurt their credit (and yours).
3. Consider a secured loan: Some lenders let you secure a personal loan with collateral like your car or the fixtures in your home. Going this route could help you get approved or lower your rate. Two lenders that offer secured loans include OneMain Financial and Upgrade. Just know that if you can’t repay the loan, the lender can seize your collateral.
4. Get prequalified: Getting prequalified with multiple lenders for bad credit can help you compare rates without a hard credit check. Just note that once you formally apply for a loan, you will undergo a hard inquiry, which can drop your score by a few points for up to a year.
5. Choose a lender and apply: Choose a lender that is right for your situation with favorable terms and apply.

Getting a $10,000 loan with no credit

It may be possible to get a $10,000 personal loan with no credit. But like loans for bad credit, lenders often charge higher fees and interest rates for no-credit loans as well, and that’s if you can qualify. But a cosigner with good credit can help you get approved and even lower your rate.

If you don’t need the loan immediately, you could establish credit first by getting a credit-builder loan, or by becoming an authorized user on a good friend’s or family member’s credit card.

Cost to repay a $10k loan

It is important to consider the long-term costs of a loan before taking one out. The table below shows the relationship between your repayment term, interest rate, monthly payment, and total interest charges. The interest rates in the table are hypothetical and for illustration purposes only.

A good rule of thumb — if you're seeking to minimize the long-term cost — is to select a loan with the biggest monthly payment and the shortest repayment term (as well as the lowest APR) you can afford. By doing so, you’ll pay less interest over the life of the loan, thereby reducing your overall costs.

Personal Loans Calculator

If you decide to take out a personal loan, use a personal loan calculator to determine interest charges over time.

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