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Whether you need to consolidate credit card debt, remodel 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 options to find a 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 a few types of lenders that offer $10,000 personal loans:
Online lenders
An online lender is one of the most convenient options when it comes to getting a personal loan. These types of lenders provide both large and small personal loans and often provide competitive rates to borrowers who qualify.
The time to fund for online loans is usually one week or less — though some lenders will fund loans as soon as the same or next business day after approval. This could make online lenders one of the best options if you need a fast personal loan.
Before taking out a personal loan, make 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
You can also get a $10,000 personal loan through a traditional bank, which may have an online presence, local brick-and-mortar branches, or both.
Banks can be a good option if you prefer applying for a loan in-person. Though you might also have the option to apply online, visiting your local branch allows you to ask questions face-to-face and even get personalized underwriting for your unique financial situation.
If you already have an account with a specific bank, you might find it easier to take out a loan or even qualify for a rate discount. You may also be able to link your existing accounts to your new loan to facilitate automatic payments.
Credit unions
Credit unions are similar to banks in that they may have both brick-and-mortar branch locations and an online presence, making it easy to apply in-person or from your computer. The difference is that credit unions typically require membership, so you’ll need to apply and join the credit union before you can take out a new loan.
Memberships may be limited to specific groups of individuals or based on location. In some cases, though, a credit union may open membership to anyone. Because credit unions are not-for-profit organizations, they sometimes offer better rates and terms than banks or online lenders. Once you’re a member, you can apply for personal loans and other financial products.
What credit score do you need for a $10,000 loan?
Your credit score is a major factor when it comes to qualifying for a personal loan. It also impacts the interest rates you might get. Generally, borrowers with good credit — usually a score of 670 or higher — will qualify for lower interest rates compared to borrowers with bad credit.
To get approved for a $10,000 personal loan, you’ll typically need a credit score of 620 or higher — though keep in mind that some lenders are willing to work with borrowers who have scores lower than 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 you can qualify for better rates in the future.
In addition to your credit score, lenders will consider other personal and financial factors when reviewing your application. These include your income, your debt-to-income ratio (DTI), and whether or not you’re applying with a co-borrower. Depending on these factors — and the loan terms you’re requesting — the actual credit score requirement may vary.
What is the monthly payment on a $10K loan?
How much you’ll pay each month on a $10,000 loan depends on two important factors: the interest rate you qualify for and the repayment term you choose.
For example, a $10,000 personal loan at an 8.5% APR would have a $124 monthly payment over a 10-year term. For the same loan over a five-year term, your monthly payment would jump to $205. If that $10,000 loan was instead offered at a 12% APR, your monthly payment obligation would shift to $143 over 10 years or $222 over five years.
The better your credit score, the lower the interest rate you’ll typically snag, which will have a major impact on how much you’ll pay for a $10,000 loan.
Once you’re ready to get a personal loan, spend some time comparing 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.
You can also check out Credible’s personal loan calculator to see how much your loan will cost you each month, what loan term you should choose, and how much you’ll pay in interest over the course of your loan.
Comparing $10K personal loan lenders
It’s important to shop around and compare multiple lenders when looking for the right personal loan. Doing so will help you find a loan with the terms that fit your budget, for the lowest possible cost.
When comparing lenders, here are the factors you’ll want to consider:
- Monthly payment amount: How much will you pay each month for your loan, based on the terms you’re offered and your interest rate? Be sure that this number fits your household budget.
- Repayment term: Your loan’s repayment term is the period of time you have to repay the debt. The longer the term, the lower your monthly payment will be, but you’ll also pay more in interest over time. If you want to repay your loan over a 10-year period but a particular lender only offers terms up to seven years, you’ll want to keep looking.
- Interest rate: The APR on your loan dictates how much you’ll pay in interest over the life of your loan and will even impact your monthly payment requirement. This rate is determined by the loan terms you choose, the specific lender and factors like your personal credit score. The lower your interest rate, the less your loan will cost you — so be sure to shop until you find the lowest possible APR.
- Fees: Outside of interest, there are other costs to watch out for. Possible lender fees include application and origination fees for processing your loan, late fees and returned payment charges, and even early prepayment penalties if you pay off your loan ahead of schedule.
- Funding time: How long will your lender take to get the money to you once your personal loan is approved? In some cases, the money can be in your account the same business day, while other lenders may need up to a week to disburse funds.
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 this easy — you can compare your prequalified rates from multiple lenders that offer $10,000 personal loans in two minutes.
How to apply for a $10,000 personal loan
If you’re 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 to offer you. Before you apply, consider checking your credit so you know where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your score.
- Compare lenders and pick a loan option. Be sure to compare as many personal loan lenders as you can to find a loan that suits your needs. Consider not only rates, but also repayment terms and any fees the lender charges. After you’ve done your research, choose the loan option you like best.
- Complete the application and get your funds. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as pay stubs or tax returns. If you’re approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans much faster.
Personal loan FAQs
Here are some answers to a few commonly asked questions regarding personal loans:
What can you use a personal loan for?
You can use a personal loan for pretty much any purpose. The money can be used to take a vacation, refinance student loans, consolidate credit card debt, cover big home renovation projects, make large purchases and much more.
Can you get a personal loan with bad credit?
Yes, several lenders offer $10,000 personal loans to borrowers with bad credit. However, keep in mind that personal loans for bad credit typically come with higher interest rates compared to good credit loans.
If you’re struggling to get approved, another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
How fast can you get a personal loan?
How fast you can get a personal loan depends on the type of lender you use. Here are the typical funding times to expect:
- Online lenders: Less than five business days
- Banks and credit unions: One to seven business days
Online lenders are usually the quickest option — many offer approval decisions within minutes, which can help speed up the loan funding time. Some online lenders even offer next-day or same-day loans if you’re approved.
APR vs. interest rate: What’s the difference?
When shopping for a personal loan, you’ll usually be presented with the loan’s annual percentage rate, or APR. This percentage represents your total annual cost for that loan, including charges such as interest and fees. Your interest rate, on the other hand, only represents the cost of borrowing that money, or the interest you’ll pay to your lender.
In many cases, an APR will be higher than an interest rate. But if your loan has no additional fees, these two numbers may be the same.
If you’re ready to shop for a personal loan, remember to compare as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
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