Learn About Small Personal Loans

Small personal loans range from $1,000 to $5,000 and are typically paid back within two or three years, making the monthly payment extremely low. Whether you are needing to pay for an auto repair, take your dog to the vet or get a minor medical procedure done, a personal loan could help.

Pros of Small Personal Loans

  • Unsecured, meaning you do not have to put up collateral
  • Can be quick and easy to get
  • Paid back over two or three years
  • Low interest rates for those with good credit
  • Improve your credit score with on-time payments

Uses of Small Personal Loans

  • Unexpected expenses
  • Medical bills
  • Weddings
  • Consolidate high-interest credit card debt
  • Car repairs
  • Vacations
  • And more!

Why a Small Personal Loan Is Better than a Credit Card

If an emergency expense arises, you may be thinking you'll just put it on your credit card. While a credit card will pay for the expense, unfortunately you'll pay significantly more in interest until the balance is paid off.

With a personal loan, you instead receive a low, fixed interest rate and fixed monthly payments. You can choose your term (typically up to three years) and pay the loan off at an affordable rate.

However, it's important to note that if you are planning on paying off the balance within a month or two, a credit card could be the best option for you. Speak with a professional financial advisor on your unique situation.

Small Personal Loans vs Payday Loans

Payday loans and personal loans can both be used as a way to get cash for unexpected expenses, but they are not created equal. Payday loans often require little paperwork and no credit check, asking for only proof of income - unlike personal loans, which generally require stringent credit checks and good credit. This may sound like a win for payday loans, but you can potentially dig yourself deeper into debt due to the high fees, interest rates and costs charged for payday loans. A personal loan instead can help you pay off debt or meet expenses without taking out additional loans. Personal loans also typically have lower interest rates and fees, and might offer higher loan limits than payday loans while being repaid over a longer term with lower payments.

Small Personal Loan Rates

Personal Loan rates in Woodbridge, NJ [Change this]

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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Calculate & Save Money on Your Small Personal Loan

One of the easiest ways to save money on your small personal loan is by comparison shopping different lenders. At LendingTree, we make it easy by doing the shopping for you!

Estimate your small personal loan monthly payment with our personal loan calculator. Ready to get started? Comparison shop different lenders today.

Small Personal Loan Payment Calculator

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