Best Small Personal Loans of November 2024
- Must be a Navy Federal Credit Union member to apply.
- No minimum credit score requirement.
- Must provide personal information and contact details.
- Must provide information on income and employment.
- Origination fee: None.
- Returned payment fee: $29.
- Late fee: $29.
- Federal Express fee: $5.65.
- Certified Mail fee: $5.83.
- Minimum credit score: None.
- Minimum monthly net income: $500. Acceptable sources of income include employment, alimony, retirement, child support or Social Security payments.
- Must be at least 18 years old.
- Must have a government-issued ID, a proof of address and a Social Security number or Individual Taxpayer Identification Number.
- Origination fee: Up to 10%.
- Late fee: $10 to $15 or up to 5% of the payment amount.
- Nonsufficient funds fee: Up to $15.
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 50%.
- Must be a member of First Tech Federal Credit Union.
- Must provide a Social Security number and copy of your driver's license or other state-issued ID.
- Late fee: $29
9.06-35.99%
$1K-$40K
600
LendingClub loans start at $1,000 to borrowers with fair or good credit. The lender doesn't offer some of the features you'll find at other online lenders, but offers to help borrowers manage their credit and budget.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
9.99-35.99%
$1K-$50K
580
Upgrade offers personal loans starting at $1,000 to borrowers with low credit scores. The lender offers credit-building tools and rate discounts that make it a solid option for those looking to build credit.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
7.80-35.99%
$1K-$50K
None
Upstart offers personal loans starting at $1,000 and says it can fund most loans one business day after a borrower signs a loan agreement. This lender uses alternative data to help borrowers with fair credit and those with thin credit histories qualify.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
11.69-35.99%
$1K-$50K
580
Universal Credit is owned by Upgrade, but focuses its loans more directly on bad-credit borrowers. Its origination fee is a bit higher than Upgrade's, but Universal Credit borrowers get access to many of Upgrade's features.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
18.00-35.99%
$1.5K-$20K
None
OneMain offers loans starting at $1,500 and doesn't have a minimum credit score requirement. This lender is an option for bad-credit borrowers, but it comes with high starting rates and an origination fee.
- Must have a taxpayer identification number.
- Must be 18 or older in most states.
- Minimum credit score: None.
- Minimum credit history: None; this lender prefers some minimal credit history.
- Minimum number of accounts on credit report: 1 active account.
- Minimum income: None, but borrowers must have sufficient disposable income to make the monthly loan payment. This lender accepts income from employment, alimony, retirement, child support and Social Security payments.
- Origination: $25 to $500 or 1% to 10%.
- Late fee: $5 to $30 or 1.5% to 15% of the payment amount, depending on your state.
- Nonsufficient funds fee: $10 to $50.
7.99-35.99%
$2K-$50K
600
Best Egg offers personal loans starting at $2,000 to those with fair or good credit. These no-frill loans have reasonable rates and are usually funded within one to three business days after approval.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
7.99-35.99%
$1K-$37K
640
- Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
- Minimum credit history: 2 years.
- Maximum debt-to-income ratio: 45%, not including mortgage payments.
- Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
- Must be at least 18 years old in most states.
- Must have a Social Security number, a government-issued photo ID and a personal bank account.
- Origination fee: Up to 10%.
- Late fee: 5% of the payment amount or $30.
- Must be a Navy Federal Credit Union member to apply.
- No minimum credit score requirement.
- Must provide personal information and contact details.
- Must provide information on income and employment.
- Origination fee: None.
- Returned payment fee: $29.
- Late fee: $29.
- Federal Express fee: $5.65.
- Certified Mail fee: $5.83.
- Minimum credit score: None.
- Minimum monthly net income: $500. Acceptable sources of income include employment, alimony, retirement, child support or Social Security payments.
- Must be at least 18 years old.
- Must have a government-issued ID, a proof of address and a Social Security number or Individual Taxpayer Identification Number.
- Origination fee: Up to 10%.
- Late fee: $10 to $15 or up to 5% of the payment amount.
- Nonsufficient funds fee: Up to $15.
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 50%.
- Must be a member of First Tech Federal Credit Union.
- Must provide a Social Security number and copy of your driver's license or other state-issued ID.
- Late fee: $29
LendingClub loans start at $1,000 to borrowers with fair or good credit. The lender doesn't offer some of the features you'll find at other online lenders, but offers to help borrowers manage their credit and budget.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 3% to 8%.
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade offers personal loans starting at $1,000 to borrowers with low credit scores. The lender offers credit-building tools and rate discounts that make it a solid option for those looking to build credit.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Upstart offers personal loans starting at $1,000 and says it can fund most loans one business day after a borrower signs a loan agreement. This lender uses alternative data to help borrowers with fair credit and those with thin credit histories qualify.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Universal Credit is owned by Upgrade, but focuses its loans more directly on bad-credit borrowers. Its origination fee is a bit higher than Upgrade's, but Universal Credit borrowers get access to many of Upgrade's features.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
OneMain offers loans starting at $1,500 and doesn't have a minimum credit score requirement. This lender is an option for bad-credit borrowers, but it comes with high starting rates and an origination fee.
- Must have a taxpayer identification number.
- Must be 18 or older in most states.
- Minimum credit score: None.
- Minimum credit history: None; this lender prefers some minimal credit history.
- Minimum number of accounts on credit report: 1 active account.
- Minimum income: None, but borrowers must have sufficient disposable income to make the monthly loan payment. This lender accepts income from employment, alimony, retirement, child support and Social Security payments.
- Origination: $25 to $500 or 1% to 10%.
- Late fee: $5 to $30 or 1.5% to 15% of the payment amount, depending on your state.
- Nonsufficient funds fee: $10 to $50.
Best Egg offers personal loans starting at $2,000 to those with fair or good credit. These no-frill loans have reasonable rates and are usually funded within one to three business days after approval.
- Minimum credit score: 600.
- Maximum debt-to-income ratio: 70% including a mortgage.
- Minimum credit history: 3 years and 1 account.
- Acceptable income sources: Employment, household income, alimony, retirement, child support, Social Security payments and disability benefits.
- Must be a U.S. citizen or permanent resident and at least 18 years of age.
- Origination fee: 0.99% - 9.99%.
- Minimum credit score: 560; borrower average is 705.
- Minimum income: No minimum requirement; borrower average is $131,000.
- Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 41.6% (including mortgage).
- Must be at least 18 years old.
- Must provide Social Security number and a U.S. bank account.
- Origination fee: 1% to 9.99%.
- Late fee: The greater of $15 or 5% of the unpaid amount.
- Insufficient funds fee: $15.
- Mailed-in payment fee: $5.
- Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
- Minimum credit history: 2 years.
- Maximum debt-to-income ratio: 45%, not including mortgage payments.
- Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
- Must be at least 18 years old in most states.
- Must have a Social Security number, a government-issued photo ID and a personal bank account.
- Origination fee: Up to 10%.
- Late fee: 5% of the payment amount or $30.
What is a small personal loan?
A small personal loan is a loan for generally less than $2,500. Repayment terms vary widely, but reputable lenders give you at least a few months — if not a couple of years — to repay a small loan.
Annual percentage rates (APRs) on small personal loans range from about 6% to 36%, with the lowest rates offered to borrowers with strong credit.
Pros and cons of small personal loans
Pros
Fast funding. Many lenders can fund a small personal loan the day you’re approved or the next day.
Lump sum. You get the funds from a personal loan all at once after approval. There’s no credit limit or draw period to remember.
Fixed payments. Personal loans have fixed interest rates that keep your monthly payment the same for the life of the loan.
No collateral. Most personal loans are unsecured, so collateral (like a house or car) isn’t required to borrow. If you don’t repay the loan, the lender can’t take your possessions, but your credit score will drop.
Cons
Approval based on credit and income. Approval depends on your creditworthiness and finances. Borrowers with thin credit histories, low scores or low incomes are usually offered higher rates, and some may not qualify.
High rates. Personal loan rates can be high, especially for those with low credit scores and incomes.
Possible origination fees. Some lenders charge an origination fee of 1% to 10% of the loan amount, which is either taken from the loan before you receive the funds or added to the monthly payment. If a lender charges this fee, make sure the final loan amount is enough to cover your expense.
Where to get a small loan
Credit unions
Credit union personal loan amounts can start below $1,000, and federally-chartered credit unions cap APRs at 18%. Many credit unions look beyond your credit score on a personal loan application and review information like your membership history.
Some federal credit unions also offer payday alternative loans. These are small loans of $200 to $2,000 with rates capped at 28%.
Online lenders
Online lenders can provide personal loans for as little as $1,000 or $2,000. Many online lenders let you pre-qualify to preview potential small loan offers, including the APR, repayment term and loan amount, without affecting your credit score.
Capital Good Fund is one of few online lenders with low rates and loans that can be less than $1,000. These loans are available in only a handful of states, though, and loan amounts vary by state.
Banks
Some large banks like U.S. Bank and Citibank offer personal loans with starting amounts of $1,000 or $2,000. Others, including Discover and Wells Fargo, have starting amounts of $2,500 or above. Banks typically prefer borrowers with good or excellent credit.
Some of the nation’s largest banks offer small-dollar loans. Here are a few examples:
The U.S. Bank Simple Loan is offered in amounts from $100 to $1,000 and is repaid over three months. The loan’s fee is $6 for every $100 borrowed.
Bank of America’s Balance Assist provides loans up to $500 and is repaid over three months. The loan carries a flat $5 fee.
The Wells Fargo Flex Loan is a short-term small loan that’s repaid in four monthly installments, according to the bank. Loans can be $250 with a $12 fee or $500 with a $20 fee.
Most banks require customers to have a bank account open for a few months before they can apply for a small loan.
How to compare small loans
Here are the most important features to compare between small loans.
APR: Annual percentage rate provides an apples-to-apples cost comparison for all loan types. The least expensive loan has the lowest APR.
Payments: Review your budget to see how much room you have to repay a loan. A personal loan calculator can show you what rate and repayment term you’d need to get an affordable monthly payment.
Terms: Some small loans have a repayment term of a few weeks or months, while others can be repaid over a year or more. A longer repayment term may mean you’ll pay more in interest, so find a term that keeps payments low but helps you clear the debt quickly.
Requirements: Some lenders prefer borrowers with strong credit and income, while others accept lower credit scores. Review a lender’s borrowing requirements to determine your likelihood of qualifying.
Funding time: Personal loan approval and funding can take a couple of days or up to a week, depending on the lender and how smoothly the application process goes. If you need the funds fast, look for a lender that offers fast loans.
How to get a small personal loan
Review your credit report and debts. Before applying, check your credit report for opportunities to address any negative marks or unpaid debts. Also, calculate your debt-to-income ratio, which lenders use to see how much of a borrower’s income goes to other debts.
Pre-qualify. Since pre-qualifying usually takes a few minutes and doesn’t affect your credit score, it’s a quick way to compare small loans.
Collect necessary documents. A loan application may require information like your Social Security number, W-2s and pay stubs. Gathering this information before you apply can speed up the loan application process.
Submit the application. This part may be done in person with local banks and credit unions, but many lenders have online applications. If you’re approved, expect funding within a day to a week. Applying will temporarily shave a few points off your credit score.
» GET STARTED: Check your personal loan rate on NerdWallet
How to qualify for a small loan with bad credit
If you have bad credit (a score of 629 or lower), you may still qualify for a small loan from a credit union or reputable online lender, but your rate could be on the high end of the lender’s range.
Here are some ways to improve your chances of qualifying for a personal loan:
Add a co-signer whose credit score or income is higher than yours. A co-signer won't have access to loan funds or information about your payments, but they will be on the hook if you fail to repay.
Get a joint personal loan with someone whose credit score or income is higher than yours. Co-borrowers share the responsibility for repayment and have equal access to the loan funds and payment information.
Choose a lender that offers secured personal loans. Most lenders let you use a savings account or vehicle as collateral.
» COMPARE: See your bad-credit loan options
How to spot a predatory small loan
A small loan from a predatory lender can damage your finances and trap you in a cycle of debt. Watch for these red flags when shopping for a small personal loan.
High interest rates: Reputable lenders cap APRs at 36%, the highest rate most consumer advocates say an affordable loan can have. Some high-interest lenders can charge triple-digit interest rates or high fees that make the loan difficult to repay.
Extra short repayment terms: Payday loans are so named because you repay them on your next payday — usually in two weeks or less. These loans require a balloon payment (all or most of the loan repaid at once) and may not give you enough time to pull the funds together.
» MORE: Alternatives to payday loans
Extra long repayment terms: Installment loans with long repayment terms are appealing because they have low monthly or bi-weekly payments, but some lenders draw out the repayment term for longer than you need in order to make more money on interest. An extra long repayment term, even on a small loan, could have you paying more than 50% of what you borrowed in interest.
Expensive refinancing options: Some high-interest installment lenders offer refinancing options that may lower your monthly payment, but because of high rates and extended terms, this option could keep you in debt for longer and cost you much more in interest.
No credit checks: A lender that approves you without checking your credit isn't trying to ensure that you can repay the loan and may even be betting that you can’t, which could lead you to borrow more money to pay off the first loan.
» MORE: How to spot a personal loan scam
Alternatives to small personal loans
NerdWallet recommends exhausting cheaper alternatives before getting a small loan, even if you need the money for an emergency. Consider these options first:
Form a lending circle with friends and family members you trust, or accept a loan from a family member.
Pick up a side gig to make extra money. Options include selling clothes or walking dogs.
Seek assistance from local nonprofits, charities and religious organizations for help with expenses like bills, gas, groceries, food or clothes.
Borrow against your next paycheck with a cash advance app. These loans can be an affordable way to borrow a few hundred dollars, but advances are repaid on your next payday.
Use a “buy now, pay later” app to split the cost of a large purchase into smaller payments spread out over a few weeks or months.
Last updated on August 1, 2024
Frequently asked questions
- Can I get a small personal loan with bad credit?
Some lenders have minimum credit score requirements as low as 560. If you're not sure whether you'd qualify, you can pre-qualify for a personal loan. Pre-qualifying won't hurt your credit score, and it allows you to see the rate and terms a lender may offer you.
- Do banks offer small personal loans?
Few major banks offer personal loans below $1,000. These three large banks offer small-dollar loans to existing customers:
U.S. Bank’s Simple loan is offered in amounts from $100 to $1,000.
Bank of America’s Balance Assist loan is offered in amounts up to $500.
Wells Fargo's Flex Loan can be $250 or $500.
- Where can I get a small personal loan?
You can find small personal loans at banks, credit unions or online lenders. Some large banks provide small loans to existing customers. Credit union personal loans may have low starting amounts. Federal credit unions can also offer a specific type of small loan called a payday alternative loan. Online personal loans usually start at $1,000, but some lenders may offer smaller loans.
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
NerdWallet's Best Small Personal Loans of November 2024
- Navy Federal Credit Union Personal Loan: Best for Small loans starting at $250
- Oportun: Best for Small loans starting at $300
- First Tech Credit Union Personal Loan: Best for Small loans starting at $500
- LendingClub: Best for Small loans starting at $1,000
- Upgrade: Best for Small loans starting at $1,000
- Upstart: Best for Small loans starting at $1,000
- Universal Credit: Best for Small loans starting at $1,000
- OneMain Financial: Best for Small loans starting at $1,500
- Best Egg: Best for Small loans starting at $2,000
- Prosper: Best for Small loans starting at $2,000
- LendingPoint: Best for Small loans starting at $2,000
