Best Small Personal Loans in December 2024

Lenders that offer loans as small as $250 to $1,000

See offers in minutes without affecting your credit score

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LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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Small personal loan lenders at a glance

First Tech Federal Credit Union

8.14% - 18.00%

$500 - $50,000

6 to 84 months

None

660

Pros
  • Can borrow as little as $500
  • No upfront fees or penalties for paying off loan early
  • Check rates without damaging credit
  • Can defer first loan payment for up to 45 days
Cons
  • Must join credit union to get a loan
  • Unclear credit requirements
  • $29 late payment fee

What to know

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First Tech Federal Credit Union offers small personal loans and caps its interest rates at 18.00%, making its loans potentially some of the cheapest on the market. First Tech doesn’t charge an upfront fee or prepayment penalties for paying off your loan early.

You can check your rates by prequalifying even if you’re not a member of First Tech, and seeing your rates won’t impact your credit. If you decide to get a loan with First Tech after seeing your rates, you’ll need to join the credit union. But don’t worry — First Tech makes it easy to qualify and become a member.

How to qualify

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To join First Tech (a requirement to get a loan), you must:

  • Work for a partnering employer
  • Be related to a current First Tech member
  • Live in Lane County, Ore.
  • Become a member of the Computer History Museum or Financial Fitness Association (First Tech will pay for your first year of membership, and you don’t have to maintain membership to keep your First Tech account)

PenFed Credit Union

8.99% - 17.99%

$600 - $50,000

12 to 60 months

None

Not specified

Pros
  • No upfront fees or penalties for paying off loan early
  • Get money as soon as the next day
  • Allows you to apply with another person
Cons
  • $29 late payment fee
  • Must be a member of PenFed to get a loan
  • Unclear eligibility criteria

What to know

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You can improve your odds of qualifying for a loan with PenFed Credit Union by applying for a joint loan with a co-borrower who has excellent credit. If your credit needs work, this is a great way to qualify for lower interest rates, especially since PenFed rates max out at 18%.

You’ll need to join PenFed Credit Union to get a loan, and keeping up with payments is important — you’ll pay a late fee of $29 if you miss a payment.

How to qualify

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To qualify for a PenFed loan, you must meet the following requirements:

  • Membership requirements: PenFed membership (anyone can join)
  • Administrative: Open a PenFed savings account with $5 deposit; may need to submit documents to verify your identity and income

LendingClub

8.98% - 35.99%

$1,000 - $40,000

24 to 60 months

3.00% - 8.00%

600

Pros
  • Borrowers get approved in two hours on average
  • Allows you to apply with another person
  • See rates without impacting your credit score
Cons
  • Charges upfront fee
  • Does not offer loans to residents of U.S. territories

What to know

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You can get a quick loan decision from LendingClub, since LendingClub borrowers are approved in two hours on average. LendingClub charges an upfront origination fee that is taken out of your loan.

One of LendingClub’s highlights, however, is the option to apply for a personal loan with a co-borrower. This can make it easier for those with lower credit scores to qualify, since two people are taking responsibility for the loan instead of just one.

How to qualify

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To be eligible for a LendingClub personal loan, you must meet the following requirements:

  • Age: Be at least 18 years old
  • Citizenship: Be a U.S. citizen or permanent resident
  • Administrative: Have a verifiable bank account
  • Credit score: 600

LendingPoint

7.99% - 35.99%

$1,000 - $36,500

24 to 72 months

Up to 10.00%

660

Pros
  • Can receive loan funds as soon as the next business day
  • Clear eligibility requirements
  • Check rates without impacting credit
  • No penalties for paying off loan early
Cons
  • May charge upfront fee
  • Not offered in Nevada or West Virginia
  • Can’t apply for a loan with another person

What to know

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You can qualify for a LendingPoint loan with a credit score as low as 660, but if you have excellent credit, you may be able to snag one of its lowest rates.

Keep in mind that if you take out a loan with LendingPoint, you may have to pay an origination fee of Up to 10.00%, and residents living in Nevada and West Virginia won’t be eligible. Note that LendingPoint does not let you apply for a personal loan with a co-borrower or a cosigner either.

How to qualify

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To get a loan from LendingPoint, you must meet its minimum criteria:

  • Age: Be 18 years old or older
  • Administrative: Provide identification issued by the U.S. government, have a Social Security number and have a bank account
  • Income: Have a minimum income of $35,000
  • Residency: Not live in Nevada or West Virginia
  • Credit score: 660

PNC Bank

7.89% - 24.74% (with autopay)

$1,000 - $35,000

6 to 60 months

None

Not specified

Pros
  • Allows you to apply with another person
  • Rate discount for autopay
  • No upfront fees or penalties for paying off loan early
Cons
  • Loan approval can take a few days
  • Unclear eligibility requirements
  • Not available in all states

What to know

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If you’re looking for in-person service, you can close on your loan at your local PNC Bank branch. PNC doesn’t charge upfront origination fees and you can get a 0.25% rate discount for signing up for autopay from your PNC checking account.

PNC loan approval can take a few days, so consider other lenders if you need a quick loan. Also note that because PNC Bank is a brick-and-mortar financial institution, you’ll have to visit a branch to get your money quickly.

How to qualify

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PNC Bank considers the following when deciding whether to approve you for a loan:

  • Credit history
  • How long you’ve been employed
  • Citizenship

Note that PNC Bank only offers personal loans in about half of all U.S. states —visit its website to see if your location is eligible.

Learn more about personal loan requirements and how lenders like PNC make approval decisions.

Upgrade

9.99% - 35.99% (with discounts)

$1,000 - $50,000

24 to 84 months

1.85% - 9.99%

580

Pros
  • Low minimum credit score (580)
  • Get money as quickly as one business day after approval
  • Offers autopay discount
  • No penalties for paying off loan early
Cons
  • Charges upfront fee
  • Loan can’t be used for education expenses
  • $10 late payment fee

What to know

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Upgrade offers loans as small as $1,000 to borrowers with fair credit. You’ll get your money as soon as one business day after Upgrade approves your loan, and you can repay your loan early without having to worry about prepayment penalties.

Keep in mind, however, that Upgrade charges an upfront origination fee on each loan, which can range from 1.85% - 9.99%. This fee will come out of the total balance that you receive, so you’ll want to factor that added cost into your budget.

How to qualify

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To qualify for an Upgrade loan, you must meet the requirements below:

  • Age: Be at least 18 years old (19 in some states)
  • Citizenship: Be a U.S. citizen or permanent resident or live in the U.S. with a valid visa
  • Administrative: Have a valid bank account and email address
  • Credit score: 580

Upstart

7.40% - 35.99%

$1,000 - $50,000

36 or 60 months

0.00% - 12.00%

300

Pros
  • Low minimum credit score (300)
  • Get money as soon as the next business day
  • Check rates without impacting credit
Cons
  • Sometimes charges expensive upfront fee
  • Limited repayment terms (36 or 60 months)

What to know

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Upstart offers small loans to borrowers with credit scores as low as 300, which is one of the lowest credit thresholds on the market. Plus, Upstart has fast funding — you can get your loan funds as soon as one day of accepting your loan offer.

Upstart charges origination fees as high as 12.00% — the highest on this list. Many lenders charge lower origination fees.

How to qualify

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Upstart has transparent eligibility requirements, including:

  • Age: Be 18 or older
  • Administrative: Have a U.S. address, personal banking account, email address and Social Security number
  • Employment: Have a job or job offer that starts within six months, or have regular income
  • Credit-related factors: Have a debt-to-income (DTI) ratio no higher than 50% (45% in Connecticut, Maryland, New York and Vermont), no bankruptcies within the last year, fewer than six inquiries on your credit report in the last six months and no current delinquencies
  • Credit score: 300

U.S. Bank

8.74% - 24.99% with autopay

$1,000 - $50,000

12 to 84 months

None

Not specified

Pros
  • U.S. Bank customers can borrow more money and take more time to pay off their loan
  • No upfront fees or fees for early payment
  • Rate discount for autopay from U.S. Bank account
  • Check rates without impacting credit
Cons
  • Non-customers have fewer repayment term options and can’t borrow as much as existing U.S. Bank customers
  • Unclear eligibility requirements

What to know

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U.S. Bank lets existing customers borrow more and take more time to pay off their loan. But regardless of your customer status, you can borrow as little as $1,000. U.S. Bank also doesn’t charge an upfront fee or charge penalties if you want to pay off your loan early.

While U.S. Bank doesn’t specify a minimum credit score or income to get a loan, you can check your rates with U.S. Bank without impacting your credit.

How to qualify

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U.S. Bank considers the following when deciding whether to approve you for a loan:

How do small personal loans work?

Small personal loans generally range from $250 to $1,000 and typically have repayment terms within two or three years, making the fixed monthly payment extremely low. You can use a small loan to cover almost any expense.

How much will my monthly payments cost?

Your monthly payments will depend on your interest rate and how long you take out your loan.

Let’s say you plan to borrow $1,000 and pay it back over the course of three years. Here’s how much you can expect to pay on average based on your credit score:

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
Credit scoreAverage APRMonthly paymentTotal repayment
Excellent credit13.80%$34.08$1,226.90
Very good credit19.10%$36.71$1,321.44
Good credit29.45%$42.15$1,517.43
Fair credit60.08%$60.49$2,177.50
Bad credit130.60%$111.54$4,015.40

From LendingTree personal loan data for Q1 of 2024.

Borrowers with bad or fair credit may have trouble qualifying for an affordable loan. If lenders offer you rates over 36%, consider other ways to get funding.

Calculate your small personal loan payments

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Why get a small personal loan

A small loan offers benefits that other types of financing don’t have. Here’s what you need to know:

  • No collateral. Small loans are typically unsecured, so you don’t need to offer up a savings account or valuable piece of property that the lender can take if you don’t make payments.
  • (Potentially) easy to get. You’ll have an easier time qualifying for a small loan than a large one, even if you have a low credit score or short credit history.
  • Quick repayment. Because small loans are under $5,000, you can typically pay off your loan in just two or three years.
  • (Potentially) low interest rates. If you have a good credit score, lenders are likely to offer you low interest rates on a small personal loan. If you don’t have good credit, you may want to consider improving your credit score before applying for a loan.
  • Build credit. Making loan payments on time and in full will improve your credit score over time. As you pay off your loan, your credit utilization ratio will go down and you’ll demonstrate to creditors that you can pay your bills on time.

Common reasons to get a small personal loan

Pros and cons of small loans

Pros

  • Fast funding. Many lenders will deposit money into your account within one business day.
  • Predictable payments. Your loan payment will be the same amount, due at the same time every month.
  • No collateral. Unsecured personal loans don’t require collateral, so you won’t risk losing an asset if you can’t make payments.
  • May accept cosigners. Some lenders let you apply with a cosigner, which can improve your chances of getting a loan.

Cons

  • Some lenders don’t offer small loans. Only some reputable lenders offer loans at $1,000 or less. If you need to cover a smaller expense but can’t find a trustworthy lender with an affordable APR, consider other financing options.
  • Potentially high APRs. If you have bad credit, you could get rates as high as 35.99%. High rates make loans an expensive way to borrow money.
  • Approval depends on credit. Borrowers with bad credit might have a hard time getting approved for a personal loan at all.
  • Fees. Upfront origination fees, prepayment penalties and late fees add to the cost of your small loan. Read your loan offers carefully to see if your lender charges fees.

How to find a small loan using LendingTree

Getting a loan through the LendingTree marketplace is easy, safe and free — and it won’t impact your credit. It only takes three steps to get your money:

  1. Fill out a form. Answer a few questions about your personal information and the kind of loan you need. This will only take a couple of minutes.
  2. Review your offers. You could receive loan offers from up to five of our trusted lending partners. Compare your offers, paying attention to the total cost of repayment and the monthly payment cost.
  3. Get your money. Once you’ve chosen a lender, submit a formal application and sign your loan contract. Then you’ll get your loan funds. It’s that easy!
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Where to get a small loan

Banks, credit unions and online lenders all offer small loans. Here’s what you need to know about the benefits and drawbacks of getting a loan from each.

Banks

Consider checking your rates with your bank while you shop around for your loan. It may take longer to get a personal loan from a bank compared with online lenders, but banks can be a good option if you appreciate in-person customer service or combining your borrowing with your banking.

Note that a bank may require that you visit a local branch in person to close on your loan.

Credit unions

To get a small personal loan from a credit union, you’ll typically need to become a member first. This sometimes requires a small fee or deposit. Check membership requirements before you apply, since some credit unions only cater to certain groups, such as people with military ties.

Credit unions also tend to offer smaller loan amounts than banks and online lenders. Navy Federal Credit Union, for instance, offers loans as small as $250.

Federal credit unions charge a maximum APR of 18.00%, which is particularly good news if you’re having trouble finding lower rates elsewhere.

Online lenders

Online lenders offer flexibility to consumers who don’t want to become a bank customer or credit union member. Because online lenders let you apply for small personal loans online and you don’t have to become a member or create a bank account, online lenders often take less time to approve and fund your small personal loan.

Online loans typically start in the $1,000 to $2,000 range. If you’re looking for a smaller loan, you’ll have better luck with a credit union or with other financing options.

How to get a small personal loan with bad credit

Low credit scores make it harder to qualify for loans, but it’s not impossible. Here are a few ways you can improve your chances of getting a small loan if you have bad credit:

  • Use collateral: Some lenders allow you to put up a valuable asset called collateral with a secured loan in exchange for lower eligibility requirements and potentially lower rates. These loans come with risk — you’ll lose your asset if you can’t pay back your loan.
  • Apply with another person: A co-borrower or cosigner with a good credit score and income can help you qualify for a personal loan. Joint loans can be easier to get because lenders take on less risk when two people are on the hook for paying off the loan.
  • Improve your credit before applying: In some cases, it may be best to wait to apply for a personal loan until you have a higher credit score. Improving your credit can help you qualify for a better interest rate and get cheaper loans that don’t charge fees.

Avoid predatory loans

Shady lenders take advantage of borrowers with bad credit by offering expensive loans that are easy to get but hard to pay off. Look out for these common red flags of a predatory loan:

 No credit checks: Getting a small loan with no credit check may sound too good to be true — and it can be. Reputable small loan companies will check your credit to make sure you can afford monthly payments. Lenders that don’t check your credit — like payday lenders — often charge high fees in exchange for easy qualification.

 Lack of transparency: If a lender isn’t upfront about fees and interest rates, walk away. Trustworthy lenders share fees and rates on their website or during the application process. Don’t sign any contracts until you understand the terms and how much your loan will cost.

 High interest rates: When comparing payday loans versus personal loans, payday loans can come with much higher interest rates (sometimes as high as 400%). Many borrowers take out more loans to pay off their original payday loan, trapping them in a cycle of debt.

 Short repayment periods: Predatory lenders sometimes offer only two to four weeks to repay a loan. This short repayment period can make it difficult or impossible to keep up with payments. Consider a reputable short-term personal loan instead.

Alternatives to small personal loans

If you’re in need of a little extra money, a small personal loan isn’t your only option. Here’s what you need to know about other ways to cover a small expense:

How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
What is it?ProsCons
0% APR credit cardA credit card with a promotional interest-free period

 Save money on interest by paying off debt in introductory period

 Sometimes offer rewards

 Must pay off debt within promotional period to avoid interest payments

 Only available to people with good or excellent credit

Buy now, pay later appsBreaking up a purchase from a store into a few payments

 Usually no interest with Pay in 4 plans

 Easy to use

 Predictable payments

 Risk overspending on items you don’t need

 Late payments result in fees and damage to your credit

Cash advance credit cardUsing your credit card to borrow money

 Convenient

 Fast

 High interest rates and fees make cash advances expensive

 No grace period

Loan from family or friendsBorrowing from a loved one

 May come with low rates and fees

 No qualification process or credit check

 Risk your relationship with your family member/friend

How we chose the best small personal loans

We reviewed more than 30 lenders that offer personal loans to determine the best small personal loans. To make our list, lenders must offer loans of $1,000 or less and have competitive APRs. From there, we prioritized lenders based on the following factors:

  • Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
  • Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
  • Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.

According to our systematic rating and review process, the best small loans come from Navy Federal Credit Union, First Tech Federal Credit Union, PenFed Credit Union, LendingClub, LendingPoint, PNC Bank, Upgrade, Upstart and U.S. Bank. LendingTree reviews and fact-checks our top picks on a monthly basis.

Frequently asked questions

Small personal loans can range from $250 to $1,000. With especially small loans, it’s important to read the fine print to make sure your lender doesn’t charge high fees or expect repayment in a few weeks or months. These tactics are common with payday lenders.

When lenders check your credit to approve you for financing, the hard credit inquiry puts a small dent in your score. Your score will typically recover in a year, and the inquiry will only stay on your credit report for two years.

Small personal loans can also negatively impact your credit score if you fall behind on payments or default on a loan.

You can use a personal loan to build credit as you make on-time payments and eventually pay off the balance. Other ways you can improve your credit score include: