What are the advantages of small personal loans?

Small personal loans have many advantages, such as being unsecured, meaning you do not have to risk any collateral. They are quick and easy to get, can be paid back over two or three years, and have low interest rates for those with good credit. Plus, you could improve your credit score with on-time payments.

What can a small loan be used for?

Small personal loans can be used for many things, such as medical bills, a wedding, car repairs, vacations, credit card debt, and any unexpected expenses.

Are there any negatives to small personal loans?

There can be, one is potentially high APRs. Subprime credit borrowers may get loan offers with APRs upward of 35% or higher. Many lenders may charge origination fees worth 1%-8% the total cost of the loan. And some lenders charge a penalty if you pay off the loan before the term expires.

Small Personal Loans

Q: What if I need less than $1,000?

If you’re looking for a small loan worth less than $1,000, you should check with your local credit union. These member-owned financial institutions can offer more flexible loan options and fewer fees when compared with your traditional bank.

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Lenders that offer small personal loans

Lender	APR	Loan amount	Loan length
Alliant Credit Union	Starting APR from 6.24% - 10.24%	$1,000 to $50,000	12 to 60 months
LendingClub	8.05% - 35.89%	$1,000 to $40,000	36 or 60 months
PenFed Credit Union	5.99% - 17.99%	Up to $35,000	Up to 60 months
PNC Bank	5.99% - 24.99%	$1,000 to $35,000	6 to 60 months
Upgrade	5.94%-35.97%	$1,000 to $50,000	36 or 60 months
Upstart	6.46% - 35.99%	$1,000 to $50,000	36 or 60 months

Tip: Check your local credit union
If you’re looking for a small loan, particularly one worth less than $1,000, you should check with your local credit union. These member-owned financial institutions can offer more flexible loan options and fewer fees when compared with your traditional bank.

What are 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.

Why get a small personal loan

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 expenses

Weddings

Consolidate high-interest credit card debt

Car repairs

Vacations

The reasons people take personal loans

A state-by-state and generational view of how personal loans are used

Why people take out personal loans in each state
(excluding debt consolidation and credit card refinancing)

State	Home Improvement %	Home Improvement $	Major Purchase %	Major Purchase $	Medical Expenses %	Medical Expenses $	Moving and Relocation %	Moving and Relocation $	Vacation %	Vacation $	Car Financing %	Car Financing $	Wedding Expenses %	Wedding Expenses $	Business %	Business $	Homebuying %	Homebuying $	Green Loan %	Green Loan $
United States	30.5%	$12,773	13.6%	$9,531	12.7%	$6,247	12.0%	$4,913	9.3%	$4,944	8.6%	$6,623	5.4%	$9,058	4.3%	$10,818	2.6%	$11,257	1.0%	$5,832
Alabama	31.9%	$9,297	13.5%	$8,348	11.1%	$5,695	10.6%	$4,816	9.4%	$4,616	9.3%	$6,885	4.4%	$8,110	4.9%	$7,921	3.6%	$9,221	1.3%	$4,750
Alaska	23.3%	$16,858	12.3%	$14,084	15.1%	$5,605	12.3%	$4,483	12.3%	$4,074	13.0%	$8,442	1.4%	$4,400	2.1%	$19,192	4.8%	$19,543	3.4%	$1,400
Arizona	28.2%	$13,254	13.7%	$9,711	14.1%	$5,818	14.5%	$4,876	8.6%	$4,063	8.9%	$6,422	4.3%	$9,073	3.7%	$9,922	2.7%	$11,489	1.1%	$7,332
Arkansas	37.1%	$12,709	17.7%	$11,230	13.4%	$7,875	6.3%	$6,052	6.1%	$5,299	8.1%	$6,753	4.1%	$6,567	4.1%	$13,260	2.9%	$15,573	0.2%	$5,000
California	23.1%	$14,518	13.3%	$9,838	14.1%	$6,398	16.2%	$5,120	9.3%	$5,587	8.1%	$6,579	6.4%	$9,283	6.2%	$9,389	2.0%	$11,136	1.4%	$5,980
Colorado	32.0%	$15,129	15.2%	$11,677	12.9%	$10,036	11.6%	$7,202	6.4%	$5,607	11.1%	$8,236	3.7%	$13,781	3.7%	$12,884	2.8%	$16,866	0.6%	$15,500
Connecticut	40.2%	$15,937	15.4%	$11,743	9.0%	$7,851	7.0%	$7,424	6.2%	$5,108	9.1%	$6,709	6.6%	$9,982	3.2%	$17,663	2.8%	$8,036	0.7%	$20,560
Delaware	30.4%	$11,119	9.7%	$7,270	16.7%	$3,653	10.9%	$4,003	10.6%	$3,627	9.7%	$4,924	7.0%	$7,266	2.9%	$9,198	1.7%	$8,449	0.5%	$700
District of Columbia	17.4%	$15,417	10.8%	$6,394	10.8%	$3,700	26.3%	$4,643	15.6%	$2,815	5.4%	$3,589	6.6%	$10,372	4.2%	$3,600	1.8%	$5,367	1.2%	$6,450
Florida	31.4%	$12,986	13.1%	$9,087	11.4%	$6,241	15.7%	$4,364	7.7%	$4,696	7.5%	$6,215	4.9%	$8,503	4.4%	$12,254	2.7%	$11,935	1.2%	$4,506
Georgia	31.8%	$12,112	14.0%	$9,986	12.7%	$7,222	10.8%	$5,698	8.1%	$5,156	9.0%	$7,555	5.3%	$10,507	5.2%	$10,814	2.3%	$10,932	0.8%	$6,754
Hawaii	20.7%	$15,263	13.8%	$12,704	7.8%	$6,384	12.5%	$8,525	27.6%	$7,946	9.1%	$8,474	3.8%	$15,705	2.2%	$15,186	1.9%	$18,103	0.6%	$6,339
Idaho	24.0%	$10,359	12.1%	$11,069	17.2%	$6,003	16.0%	$3,138	8.0%	$3,049	10.4%	$5,659	3.8%	$6,615	5.0%	$7,410	1.8%	$14,810	1.8%	$5,944
Illinois	31.7%	$12,159	12.5%	$9,237	12.6%	$5,279	10.2%	$4,527	10.3%	$4,304	7.7%	$5,924	6.9%	$9,003	3.9%	$8,523	3.2%	$9,379	0.8%	$4,511
Indiana	29.9%	$11,322	13.5%	$8,781	12.5%	$6,059	10.4%	$4,088	9.8%	$4,737	11.1%	$6,593	4.8%	$7,876	3.5%	$9,243	3.4%	$7,758	1.2%	$4,675
Iowa	38.1%	$11,597	14.5%	$10,616	8.2%	$9,138	8.5%	$8,431	6.5%	$6,753	9.9%	$8,109	6.8%	$9,896	4.0%	$16,476	2.6%	$10,153	0.9%	$12,274
Kansas	31.7%	$13,332	12.8%	$9,534	15.9%	$6,943	9.3%	$4,790	8.1%	$4,481	8.8%	$5,061	4.5%	$9,146	4.5%	$11,712	3.8%	$7,961	0.6%	$6,060
Kentucky	33.6%	$10,920	14.3%	$8,314	11.1%	$4,775	9.6%	$4,362	11.5%	$4,562	10.0%	$7,327	3.8%	$8,324	3.2%	$9,332	2.2%	$9,592	0.7%	$5,724
Louisiana	29.7%	$10,646	11.7%	$8,840	13.9%	$5,454	11.2%	$4,323	12.1%	$4,891	7.3%	$6,701	6.7%	$8,049	4.3%	$11,477	2.0%	$9,762	1.1%	$3,936
Maine	37.5%	$12,837	18.9%	$10,168	7.8%	$5,801	9.8%	$3,717	5.9%	$6,582	11.7%	$6,867	2.0%	$8,689	2.6%	$7,663	3.6%	$14,945	0.3%	$3,195
Maryland	39.1%	$13,960	13.8%	$10,465	9.8%	$8,972	7.4%	$7,384	8.7%	$7,030	8.1%	$7,423	5.8%	$11,304	4.8%	$11,783	2.2%	$15,519	0.3%	$5,398
Massachusetts	46.0%	$17,483	12.8%	$13,718	8.0%	$11,913	7.7%	$8,494	4.0%	$10,173	7.4%	$9,844	7.5%	$14,130	3.7%	$20,292	1.7%	$21,345	1.1%	$9,498
Michigan	34.1%	$11,181	14.8%	$8,456	10.2%	$5,621	10.0%	$4,581	8.6%	$4,623	9.0%	$5,729	5.8%	$8,356	3.0%	$15,733	3.2%	$10,645	1.2%	$5,395
Minnesota	27.4%	$11,908	15.5%	$9,216	12.1%	$5,338	10.6%	$4,247	9.3%	$4,885	10.6%	$6,471	7.4%	$9,855	4.0%	$15,202	2.0%	$10,392	1.1%	$7,798
Mississippi	28.1%	$8,256	10.6%	$7,052	17.3%	$3,431	10.1%	$2,171	12.3%	$3,698	8.8%	$4,268	4.0%	$5,834	4.3%	$8,897	2.8%	$8,546	1.6%	$2,997
Missouri	26.1%	$9,452	13.5%	$6,996	16.3%	$4,351	12.4%	$3,402	8.2%	$3,462	10.8%	$5,097	4.9%	$6,854	2.9%	$5,446	3.8%	$8,842	1.1%	$3,819
Montana	19.7%	$13,206	19.2%	$9,939	16.7%	$8,639	14.1%	$5,243	9.8%	$4,701	12.0%	$8,658	0.4%	$9,033	5.6%	$8,781	1.3%	$13,111	1.3%	$4,033
Nebraska	26.0%	$12,923	14.5%	$8,469	20.8%	$6,089	9.3%	$5,688	8.2%	$6,139	11.5%	$6,644	5.9%	$8,804	2.2%	$13,469	1.3%	$13,752	0.2%	$4,500
Nevada	29.5%	$14,247	12.5%	$9,157	11.0%	$7,180	14.9%	$5,038	11.8%	$6,366	9.0%	$5,830	4.7%	$8,827	3.2%	$12,092	2.2%	$10,474	1.2%	$7,400
New Hampshire	41.4%	$14,785	14.1%	$10,295	8.6%	$7,015	5.9%	$5,813	7.9%	$6,239	8.9%	$6,758	5.9%	$8,601	3.9%	$11,933	1.6%	$16,231	1.6%	$10,047
New Jersey	39.2%	$15,691	12.2%	$12,558	9.4%	$8,689	10.2%	$6,656	7.7%	$6,357	7.0%	$8,182	7.3%	$11,935	3.6%	$13,633	2.2%	$15,461	1.2%	$10,249
New Mexico	25.0%	$9,307	10.7%	$7,862	15.6%	$3,823	13.9%	$3,361	15.0%	$3,068	8.4%	$5,921	3.7%	$5,369	4.8%	$12,276	2.4%	$7,234	0.4%	$1,792
New York	37.1%	$16,593	14.5%	$12,291	8.2%	$9,237	11.6%	$6,969	7.9%	$5,863	5.6%	$7,596	7.7%	$13,521	3.7%	$15,214	3.1%	$16,182	0.5%	$7,702
North Carolina	33.1%	$12,082	15.2%	$9,928	12.0%	$7,702	10.3%	$5,586	7.5%	$5,911	9.4%	$8,062	4.9%	$8,397	4.9%	$11,979	2.1%	$11,236	0.6%	$5,892
North Dakota	18.6%	$13,853	14.6%	$9,617	19.8%	$4,792	14.6%	$4,270	10.3%	$5,302	10.7%	$4,755	2.8%	$9,021	4.7%	$5,963	3.2%	$7,082	0.8%	$9,915
Ohop	31.8%	$10,896	14.6%	$8,118	10.6%	$5,900	9.7%	$4,195	10.2%	$4,274	11.2%	$6,335	5.3%	$6,901	2.7%	$11,040	3.3%	$12,162	0.7%	$4,794
Oklahoma	29.9%	$11,659	14.6%	$10,019	13.0%	$6,527	9.9%	$5,816	11.5%	$4,860	8.5%	$5,982	4.7%	$6,905	3.5%	$11,788	3.4%	$11,033	0.9%	$7,649
Oregon	23.8%	$15,491	14.8%	$8,220	15.4%	$6,097	15.1%	$4,439	9.9%	$4,684	9.0%	$6,580	3.7%	$7,092	4.7%	$9,661	2.6%	$10,059	1.0%	$4,397
Pennsylvania	37.9%	$11,924	15.5%	$9,071	8.1%	$7,985	8.6%	$6,473	8.7%	$5,860	9.6%	$7,359	5.0%	$9,134	3.0%	$11,570	3.1%	$12,538	0.5%	$6,305
Rhode Island	32.4%	$12,614	14.8%	$11,342	8.1%	$5,013	13.0%	$2,823	5.6%	$4,350	13.0%	$4,592	6.3%	$7,067	2.1%	$7,583	2.8%	$3,163	1.8%	$4,240
South Carolina	29.1%	$10,887	12.3%	$7,940	13.6%	$4,239	11.8%	$3,551	10.6%	$3,133	9.0%	$5,895	4.4%	$6,021	5.0%	$10,016	2.9%	$10,299	1.2%	$4,694
South Dakota	24.0%	$12,087	12.6%	$7,303	19.7%	$5,424	9.8%	$5,726	13.1%	$5,317	10.9%	$6,081	3.3%	$8,017	3.3%	$9,367	1.6%	$5,300	1.6%	$7,768
Tennessee	31.2%	$10,258	14.0%	$9,224	13.7%	$5,454	9.7%	$4,569	10.7%	$5,118	9.1%	$6,799	4.3%	$7,913	3.7%	$9,010	2.6%	$10,415	1.1%	$6,961
Texas	29.5%	$13,090	12.9%	$9,764	15.3%	$6,070	11.1%	$4,305	10.6%	$4,688	7.2%	$6,459	5.0%	$8,146	4.9%	$11,145	2.4%	$9,738	1.0%	$5,761
Utah	23.2%	$14,757	11.7%	$10,534	17.5%	$4,881	14.8%	$4,344	9.0%	$3,064	9.8%	$5,285	5.0%	$7,200	5.4%	$7,657	2.3%	$8,264	1.3%	$850
Vermont	41.7%	$11,771	18.3%	$11,555	8.3%	$9,820	11.7%	$6,714	0.0%	$0	11.7%	$7,536	1.7%	$5,000	6.7%	$16,775	0.0%	N/A	0.0%	N/A
Virginia	28.7%	$11,375	12.5%	$8,128	14.6%	$5,448	13.6%	$4,573	9.3%	$4,060	8.4%	$6,128	5.2%	$7,538	4.6%	$9,124	2.3%	$13,974	0.7%	$4,308
Washington	23.0%	$13,665	14.1%	$9,185	13.3%	$6,343	16.5%	$5,248	10.7%	$5,442	9.5%	$7,135	5.4%	$8,962	3.9%	$10,814	1.8%	$10,954	1.7%	$6,286
West Virginia	41.8%	$12,742	16.0%	$11,090	6.3%	$9,858	6.1%	$7,243	8.4%	$8,367	11.0%	$8,757	3.0%	$12,113	3.0%	$12,339	3.9%	$11,333	0.4%	$4,750
Wisconsin	23.6%	$10,627	14.6%	$7,240	16.7%	$3,640	14.1%	$2,737	9.9%	$3,082	8.8%	$4,144	5.5%	$5,644	4.5%	$5,124	1.9%	$6,184	0.6%	$2,786
Wyoming	22.9%	$15,772	21.6%	$10,760	16.3%	$10,796	3.9%	$7,133	13.7%	$6,038	11.8%	$9,404	0.7%	$6,500	5.2%	$7,729	3.3%	$10,618	0.7%	$5,200

Note: Includes people between the ages of 25 and 75 who originated personal loans via the LendingTree platform in 2019. Excludes the following purpose responses: credit card refinancing, debt consolidation, other and unknown.

How much people borrowed for these reasons in each state on the LendingTree platform in 2019
(excluding debt consolidation and credit card refinancing)

	Home Improvement	Major Purchase	Medical Expenses	Moving and Relocation	Car Financing	Wedding Expenses	Business	Vacation	Home Buying	Green Loan
US	$355,893,233	$123,909,278	$73,545,389	$57,681,729	$56,379,207	$45,817,707	$45,367,232	$43,194,857	$27,319,771	$5,295,684
AL	$4,663,281	$1,893,801	$1,003,654	$860,005	$1,047,185	$583,071	$665,653	$678,071	$534,044	$98,748
AK	$661,159	$276,311	$134,199	$94,000	$166,195	$29,800	$57,576	$74,825	$171,800	$7,000
AZ	$7,809,257	$2,999,119	$1,784,560	$1,596,064	$1,435,593	$873,724	$813,402	$759,563	$645,186	$163,914
AR	$2,498,121	$1,083,396	$557,672	$221,761	$320,878	$145,105	$309,061	$176,470	$255,499	$5,000
CA	$34,899,457	$14,197,255	$9,590,510	$9,109,340	$6,189,932	$6,206,366	$6,542,361	$5,577,813	$2,436,477	$834,597
CO	$5,796,557	$2,226,870	$1,582,739	$1,064,791	$1,161,509	$617,598	$582,285	$456,633	$539,696	$108,497
CT	$5,044,519	$1,497,888	$560,328	$442,475	$522,500	$529,900	$423,900	$287,696	$171,760	$123,416
DE	$1,472,240	$348,825	$264,061	$195,876	$210,595	$210,723	$130,513	$166,227	$77,351	$1,400
DC	$457,610	$131,710	$68,800	$238,906	$34,299	$114,889	$116,799	$78,200	$16,100	$12,900
FL	$28,563,137	$8,613,007	$5,090,321	$5,210,378	$3,561,350	$2,930,539	$4,139,439	$2,597,951	$2,249,746	$415,610
GA	$14,670,961	$5,503,860	$3,640,471	$2,521,477	$2,738,420	$2,202,282	$2,362,000	$1,620,027	$992,975	$210,869
HI	$1,047,851	$577,010	$176,092	$355,580	$258,350	$193,464	$169,394	$728,441	$108,620	$12,678
IL	$15,933,553	$4,856,285	$2,792,947	$2,059,535	$2,023,027	$2,596,358	$1,441,030	$1,860,891	$1,345,539	$150,350
IN	$7,898,600	$2,863,567	$1,773,241	$1,054,099	$1,750,104	$924,885	$858,143	$1,106,967	$671,977	$128,207
IA	$1,580,047	$659,190	$280,655	$296,868	$305,034	$237,511	$255,662	$179,639	$103,380	$36,823
ID	$862,965	$508,346	$374,971	$176,100	$213,157	$96,497	$126,964	$87,112	$88,861	$41,363
KS	$2,759,041	$843,973	$705,314	$316,024	$352,012	$290,991	$327,925	$230,514	$201,710	$24,238
KY	$4,607,006	$1,516,529	$672,617	$592,366	$958,077	$421,416	$378,252	$661,736	$261,024	$63,015
LA	$5,186,106	$1,799,784	$1,328,363	$815,881	$821,219	$921,674	$806,890	$982,966	$310,442	$72,596
ME	$1,562,887	$615,026	$143,213	$126,020	$292,365	$52,132	$69,308	$121,369	$164,391	$3,195
MD	$8,453,952	$2,275,465	$1,380,509	$900,008	$972,647	$1,019,746	$895,671	$938,912	$533,742	$21,593
MA	$6,733,128	$1,557,298	$778,913	$620,101	$637,387	$885,827	$645,772	$333,976	$315,230	$85,478
MI	$8,426,731	$2,890,211	$1,334,681	$1,092,491	$1,198,056	$1,177,026	$1,110,978	$926,727	$798,149	$141,277
MN	$3,906,785	$1,807,956	$823,982	$599,358	$901,654	$930,802	$734,094	$569,737	$240,024	$103,876
MO	$4,826,285	$1,801,385	$1,402,730	$904,660	$1,166,681	$653,160	$412,021	$595,666	$628,623	$82,686
MS	$2,891,028	$1,022,693	$754,031	$330,767	$533,574	$291,844	$460,074	$570,552	$312,887	$65,455
MT	$615,112	$480,071	$342,015	$198,939	$258,780	$10,333	$114,154	$133,245	$41,132	$12,100
NE	$1,656,691	$615,660	$630,077	$273,025	$381,694	$274,913	$149,377	$238,772	$97,271	$4,500
NV	$3,524,882	$989,355	$683,236	$670,748	$502,758	$335,435	$356,931	$642,246	$188,525	$73,998
NH	$1,929,716	$509,417	$208,131	$122,052	$205,576	$175,724	$143,200	$149,743	$98,657	$50,235
NJ	$15,257,461	$3,918,831	$2,017,788	$1,768,211	$1,587,986	$2,151,424	$1,310,809	$1,278,029	$868,881	$301,337
NM	$1,755,911	$685,935	$452,982	$362,631	$397,545	$176,662	$426,955	$352,066	$125,339	$15,376
NY	$24,052,903	$7,363,646	$2,976,652	$3,493,415	$1,824,991	$4,092,435	$2,307,319	$1,920,432	$2,046,266	$158,847
NC	$12,682,051	$5,015,689	$2,974,315	$1,909,774	$2,570,955	$1,358,658	$1,913,837	$1,416,910	$801,482	$113,539
ND	$658,612	$360,306	$243,422	$179,563	$147,596	$71,544	$98,610	$140,946	$71,792	$19,830
OH	$12,452,042	$4,418,017	$2,273,465	$1,635,012	$2,647,664	$1,338,054	$1,105,878	$1,593,530	$1,419,529	$129,712
OK	$3,620,176	$1,599,203	$865,188	$676,321	$582,291	$336,458	$444,740	$563,723	$395,166	$68,844
OR	$3,544,342	$1,195,796	$909,867	$765,067	$655,916	$272,734	$477,218	$443,165	$245,242	$41,075
PA	$16,212,493	$5,352,352	$2,432,722	$2,205,024	$2,869,803	$1,709,059	$1,408,322	$1,880,823	$1,446,910	$113,494
RI	$1,183,856	$524,550	$134,225	$112,750	$186,100	$131,400	$46,600	$88,600	$25,300	$21,200
SC	$6,318,232	$2,003,345	$1,129,717	$897,659	$1,113,185	$561,724	$997,759	$668,799	$586,245	$119,406
SD	$551,133	$215,484	$207,176	$114,860	$123,617	$63,100	$56,200	$135,211	$15,900	$23,303
TN	$6,182,269	$2,556,968	$1,454,337	$935,427	$1,325,353	$685,460	$690,557	$1,064,451	$559,180	$140,577
TX	$35,858,690	$12,147,547	$8,607,939	$4,611,298	$4,592,303	$3,967,857	$5,251,317	$4,751,012	$2,190,465	$558,039
UT	$1,904,961	$677,277	$459,525	$375,907	$282,941	$196,696	$268,812	$146,893	$103,670	$6,550
VT	$294,269	$127,100	$49,100	$58,000	$52,750	$5,000	$67,100	$0	$0	$0
VA	$10,887,754	$3,659,849	$2,687,354	$2,188,294	$1,864,613	$1,309,682	$1,436,831	$1,285,950	$1,054,945	$98,735
WA	$5,265,142	$2,470,488	$1,411,908	$1,519,047	$1,221,793	$856,620	$845,285	$1,034,499	$336,983	$176,004
WV	$2,566,325	$857,964	$316,640	$215,843	$474,643	$169,575	$182,545	$334,911	$221,234	$9,500
WI	$3,148,546	$1,402,256	$802,229	$554,230	$535,982	$410,815	$361,363	$428,731	$151,330	$19,503
WY	$557,400	$395,413	$275,806	$43,700	$200,570	$19,018	$70,347	$133,489	$53,092	$5,200

Note: Excludes the following purpose responses: credit card refinancing, debt consolidation, other and unknown.

Why each generation takes out personal loans
(excluding debt consolidation and credit card refinancing)

Reason	MILLENIAL % of Loans Originated	MILLENNIAL Average Loan Size	GEN X % of Loans Originated	GEN X Average Loan Size	BOOMER % of Loans Originated	BOOMER Average Loan Size
Home Improvement	11.7%	$12,265	19.9%	$13,566	24.7%	$12,065
Car Financing	17.3%	$5,552	16.7%	$7,303	16.8%	$7,628
Moving and Relocation	19.5%	$4,256	13.6%	$5,599	9.5%	$6,338
Medical Expenses	12.3%	$5,436	13.7%	$6,559	16.8%	$7,044
Major Purchase	12.5%	$8,390	11.4%	$10,557	10.3%	$10,173
Homebuying	7.2%	$10,447	7.6%	$11,920	8.0%	$11,954
Vacation	6.5%	$4,023	6.5%	$5,371	5.9%	$6,021
Business	6.4%	$8,597	5.5%	$9,457	3.7%	$10,319
Wedding Expenses	4.5%	$10,488	2.9%	$11,109	2.4%	$11,093
Green Loan	2.0%	$4,855	2.1%	$6,110	2.0%	$6,648

Note: Includes people between the ages of 25 and 73 who originated personal loans via the LendingTree platform in 2019. Excludes the following purpose responses: credit card refinancing, debt consolidation, other and unknown.

Pros and cons of a small personal loan

Pros	Cons
Fast funding. Many lenders can approve you and deposit funds into your account within one business day. Fixed monthly payments. Personal loans are lump-sum loans that are repaid in fixed monthly payments over a set period of time. Personal loans typically have fixed APRs, which means you lock in your interest rate for the duration of the loan. No collateral. Unsecured personal loans don’t require collateral, so you won’t risk losing an asset if you default on the loan. May accept cosigners. Some lenders let you enlist the help of a cosigner, which can improve your chances of being approved for a loan.	Minimum loan amounts. Most personal loans are worth at least $1,000, so it might not be worth it to take one out for a small emergency expense. Potentially high APRs. Subprime credit borrowers may get loan offers with APRs upward of 35% or higher. Approval hinges on credit. Borrowers with bad credit might have a hard time getting approved for a personal loan at all. Origination fees. Many lenders charge an origination fee worth 1%-8% the total cost of the loan. Prepayment penalties. Some lenders charge a penalty if you pay off the loan before the term expires.

Pros

Cons

Fast funding. Many lenders can approve you and deposit funds into your account within one business day.
Fixed monthly payments. Personal loans are lump-sum loans that are repaid in fixed monthly payments over a set period of time.
Personal loans typically have fixed APRs, which means you lock in your interest rate for the duration of the loan.
No collateral. Unsecured personal loans don’t require collateral, so you won’t risk losing an asset if you default on the loan.
May accept cosigners. Some lenders let you enlist the help of a cosigner, which can improve your chances of being approved for a loan.

Minimum loan amounts. Most personal loans are worth at least $1,000, so it might not be worth it to take one out for a small emergency expense.
Potentially high APRs. Subprime credit borrowers may get loan offers with APRs upward of 35% or higher.
Approval hinges on credit. Borrowers with bad credit might have a hard time getting approved for a personal loan at all.
Origination fees. Many lenders charge an origination fee worth 1%-8% the total cost of the loan.
Prepayment penalties. Some lenders charge a penalty if you pay off the loan before the term expires.