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If you need to cover a personal expense, a personal loan might be a good option. Here’s what you need to know before getting a $10,000 personal loan. (Stock)
Whether you need to consolidate credit card debt, renovate your bathroom, or cover another major expense, a personal loan can be a good choice. If you decide to take out a loan, such as a $10,000 personal loan, be sure to carefully review your lender’s options to find a loan that best suits your needs.
Here’s what you need to 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 convenient options when it comes to getting a personal loan. These types of lenders offer small and large personal loans and often offer competitive rates to qualifying borrowers.
The funding time for online loans is usually a week or less, although some lenders fund loans 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, be sure to consider as many lenders as possible to find the loan that’s right 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 from 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 of applying online, depending on the lender.
Although online lenders are convenient, banks and credit unions sometimes offer their own perks. For example, if you already have an account with them, you might qualify for a discount on pricing. Also keep in mind that because credit unions are non-profit organizations, they sometimes offer better rates and terms than banks or online lenders.
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 the rates and terms to offer you. Before applying, remember to check your credit so you know where you stand. You can use a site like AnnualCreditReport.com to view your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially increase your score.
- Compare lenders and choose a loan option. Be sure to compare as many personal lenders as possible to find a loan that meets your needs. Consider not only the rates, but also the repayment terms and fees charged by the lender. After doing your research, choose the loan option that’s right for you.
- Complete the application and get your funds. Once you’ve chosen a lender, you’ll need to complete a complete application and submit all required documents, such as pay stubs or tax returns. If you are approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund a personal loan is usually around a week, although some lenders fund 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 rate – Personal loan interest rates generally range from 3.99% to 35.99%. However, the rate you receive will likely be influenced by your credit, the amount you want to borrow, the repayment term, and the lender you choose.
- Costs – 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 repayment fees for insufficient funds. It’s also good to keep in mind that some lenders may charge you a penalty for prepaying a personal loan.
- Repayment Terms – Personal loan repayment terms typically range from one to seven years, depending on the lender. Your repayment term will affect your monthly payment and the overall cost of your loan.
- Monthly payment – Your monthly personal loan payment is determined by your interest rate, loan amount and repayment term. Opting for a longer repayment term results in lower monthly payments, but adds up to more interest paid over time. Shorter repayment terms mean higher monthly payments, but you’ll pay less interest and pay off your loan faster.
Before taking out a personal loan, remember to consider as many lenders as possible. This way, you can find a loan that’s right for you. Credible makes it easy – you can compare your prequalified rates from several lenders who offer $10,000 personal loans in two minutes.
What credit rating 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. This also has an impact on the interest rates you might get. As a general rule, 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, you will generally need a credit score of 620 or higher, but keep in mind that some lenders are willing to work with borrowers whose score is lower than this. If you have poor credit and can wait to get a personal loan, it may be a good idea to work on build 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?
The amount you will pay for a $10,000 loan will depend on the interest rate you qualify for as well as the length of your repayment.
For example, borrowers with credit scores ranging from 720 to 779 qualified for personal loan interest rates with an average of 11.04% APR 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.
In comparison, borrowers with scores of 640-679 were offered an average APR of 24.24% while those with scores of 600-639 were offered an APR of 29.01%. 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’ll pay for a loan using Credible’s personal loan calculator.
If you’re ready to get a personal loan, take the time to compare as many lenders as possible to find the loan that’s right 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 approved partner lenders.
Personal Loan FAQs
Here are some answers to some frequently asked questions about personal loans:
Can you get a personal loan with bad credit?
Yes, many lenders offer $10,000 personal loans to borrowers with bad credit. However, keep in mind that personal loans for bad credit usually come with higher interest rates compared to good credit loans.
If you’re having trouble getting approved, another option is to apply with a co-signer. Not all lenders allow co-signers on personal loans, but some do. Even if you don’t need a co-signer to qualify, having one could get you a lower interest rate than you would get yourself.
How quickly can you get a personal loan?
How quickly 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 working days
- Banks and credit unions: One to seven business days
Online lenders are generally the fastest option – many offer approval decisions within minutes, which can help speed up loan funding time. Some online lenders even offer next day or same day loans if you are approved.
What can a personal loan be used for?
You can use a personal loan for almost all of your personal expenses (although some lenders may have certain restrictions). For example, you could get a personal loan to cover debt consolidationmedical bills, home improvementand more.
Keep in mind that you may not be able to use a personal loan to pay for business ventures or post-secondary education expenses. Be sure to read the terms first so you know how you can use your loan.
If you’re ready to shopping for a personal loan, remember to compare as many lenders as possible to find the right loan for you. Credible makes it easy – you can compare your prequalified rates from multiple lenders in two minutes.
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