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If you need to cover a personal expense, a personal loan might be a good option. Here’s what you should know before getting a $ 10,000 personal loan. (iStock)
If you need to consolidate credit card debt, renovate your bathroom, or cover another large expense, a personal loan might be a good choice. If you decide to take out a loan, such as a $ 10,000 personal loan, be sure to carefully consider your lender’s options to find the loan that best suits your needs.
Here’s what you should know before getting a $ 10,000 personal loan.
Where to get a $ 10,000 personal loan
Here are some types of lenders that offer $ 10,000 personal loans:
An online lender is one of the most affordable options when it comes to getting a personal loan. These types of lenders provide large and small personal loans and often offer competitive rates to borrowers who qualify.
The time to finance online loans is usually a week or less, although some lenders will finance the loans as soon as the same or the next business day after approval. This could make online lenders one of the best options if you are in need of one fast personal loan.
Before taking out a personal loan, be sure to consider as many lenders as you can to find the right loan for you. You can compare your prequalified rates from Credible’s partner lenders in the table below in just two minutes.
Banks and credit unions
You can also get a $ 10,000 personal loan through a traditional bank or credit union. This could be a good option if you prefer to apply for a loan in person, although you may also have the option to apply for it online, depending on the lender.
While online lenders are affordable, banks and credit unions sometimes offer benefits of their own. For example, if you already have an account with them, you may be eligible for a discount on the rate. Also keep in mind that because credit unions are non-profit organizations, they sometimes offer better rates and terms than online banks or lenders.
How to apply for a $ 10,000 personal loan
If you are ready to get a $ 10,000 personal loan, follow these three steps:
- Check your credit. Lenders will review your credit to determine how likely you are to repay the loan, as well as what rates and terms they offer you. Before applying, consider checking your credit so you know where you are. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find errors, dispute them with the appropriate credit bureaus to potentially boost your score.
- Compare lenders and choose a loan option. Make sure you compare as many personal loan lenders as possible to find a loan that fits your needs. Consider not only the rates, but also the repayment terms and any fees charged by the lender. After doing your research, choose the loan option you like best.
- Complete the application and get your funds. After choosing a lender, you will need to fill out a complete application and submit all required documentation, such as pay slips or tax returns. If you are approved, the lender will have you sign up for the loan so that the funds can be released to you. The time to finance a personal loan is usually around a week, although some lenders will finance loans much faster.
What to consider when applying for a personal loan
Be sure to consider the following factors when shopping for your $ 10,000 personal loan:
- Interest rates – Interest rates for personal loans typically range from 3.99% to 35.99%. However, the rate you receive will likely be affected by your credit, the amount you wish to borrow, the repayment term, and the lender you choose.
- Commissions – Be sure to check with your lender to determine what type of fees they charge. Some lenders charge origination fees for loan processing, while others may charge late fees or returned payment fees for insufficient funds. It is also good to keep in mind that some lenders may charge you a penalty for paying off a personal loan early.
- Refund terms – The repayment terms of the personal loan typically range from one to seven years, depending on the lender. The repayment term will affect the monthly payment and the total cost of the loan.
- Monthly payment – The monthly payment for your personal loan is determined by the interest rate, the loan amount and the repayment term. Opting for a longer repayment term results in lower monthly payments, but adds to more interest paid over time. Shorter repayment terms mean higher monthly payments, but you’ll pay less interest and pay off the loan faster.
Before taking out a personal loan, remember to consider as many lenders as you can. This way, you can find a loan that works for you. Credible makes it easy – you can compare your prequalified rates from multiple lenders offering $ 10,000 personal loans in two minutes.
What Credit Score Do You Need For A $ 10,000 Personal Loan?
Your credit score is an important factor when it comes to qualifying for a personal loan. It also affects the interest rates you might get. Generally speaking, borrowers with good credit – usually a score of 670 or higher – will qualify for lower interest rates than borrowers with bad credit.
To get approved for a $ 10,000 personal loan, a credit score of 620 or higher is typically required, although keep in mind that some lenders are willing to work with borrowers who have scores below this. If you have poor credit and can wait to get a personal loan, it might be a good idea to work on building your credit so that you can benefit from better rates in the future.
How much will you pay monthly for a $ 10,000 personal loan?
How much you will pay for a $ 10,000 loan will depend on the interest rate you qualify for and the repayment term.
For example, borrowers with credit scores between 720 and 779 qualified interest rates on personal loans averaging 11.04% in April when they took out a three-year loan through Credible in July 2022. For a $ 10,000 loan at that rate, borrowers would have a total repayment cost of $ 11,792.
By comparison, borrowers with scores from 640 to 679 received an average of 24.24% in April, while those with scores from 600 to 639 were offered 29.01% in April. Borrowers who got these rates on a three-year loan would pay $ 14,169 and $ 15,088 respectively for the same $ 10,000 loan.
As you can see, your credit score will have a major impact on how much you will pay for a $ 10,000 loan. Before getting a loan, be sure to consider the overall cost so you can prepare for any additional costs – you can estimate how much you will pay for a loan using Credible’s personal loan calculator.
If you are ready get a personal loanTake your time to compare as many lenders as possible to find the right loan for you. You can do this easily with Credible – after filling out a single form, you can see your prequalified rates from each of Credible’s vetted partner lenders.
Frequently Asked Questions About Personal Loans
Here are some answers to some frequently asked questions about personal loans:
Is it possible to get a personal loan with bad loans?
Yes, several lenders offer $ 10,000 personal loans to bad credit borrowers. However, keep this in mind personal loans for bad credit they generally come with higher interest rates than good credit loans.
If you’re struggling to get approved, another option is to apply with a cosigner. Not all lenders allow cosigners personal loans, but some do. While you don’t need a cosigner to qualify, having one could get you a lower interest rate than you would get on your own.
How fast can you get a personal loan?
The speed with which you can get a personal loan depends on the type of lender you use. Here are the typical funding times expected:
- Online lenders: Less than five business days
- Banks and credit unions: From one to seven business days
Online lenders are usually the quickest option – many offer approval decisions within minutes, which can help speed up loan financing times. Some online lenders also offer next day or same-day loans if you are approved.
What is a personal loan for?
You can use a personal loan for almost any personal expense (although some lenders may have some restrictions). For example, you could get a personal loan to cover Debt Consolidationmedical expenses, home improvementsand more.
Keep in mind that you may not be able to use a personal loan to pay for business ventures or high school expenses. Make sure you read the terms first so you know how you can use your loan.
If you are ready buy for a personal loan, remember to compare as many lenders as you can to find the right loan for you. Credible makes it easy – you can compare your prequalified rates from multiple lenders in two minutes.