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If you need to cover a personal expense, a personal loan could be a good option. Here’s what you should know before getting a $10,000 personal loan. (iStock)
Whether you need to consolidate credit card debt, remodel your bathroom, or cover another large expense, a personal loan might be a good choice. If you decide to take out a loan — such as a $10,000 personal loan — be sure to carefully consider your lender options to find a loan that best suits your needs.
Here’s what you should know before getting a $10,000 personal loan.
- Where to get a $10K personal loan
- How to apply for a $10K personal loan
- What to consider when applying for a personal loan
- What credit score do you need for a $10K personal loan?
- How much will you pay monthly for a $10K personal loan?
- Personal loan FAQs
Here are a few 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 provide both large and small personal loans and often provide competitive rates to borrowers who qualify.
The time to fund for online loans is usually one week or less — though some lenders will fund loans as soon as 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, make sure to consider as many lenders as you can to find the right loan 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 through a traditional bank or credit union. This could be a good option if you prefer applying for a loan in person — though you might also have the option to apply online, depending on the lender.
While online lenders are convenient, banks and credit unions sometimes offer benefits of their own. For example, if you already have an account with them, you might qualify for a rate discount. Also keep in mind that because credit unions are not-for-profit organizations, they sometimes offer better rates and terms than banks or online lenders.
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 what rates and terms to offer you. Before you apply, consider checking your credit so you know where you stand. You can use a site like AnnualCreditReport.com to review your credit reports for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially boost your score.
- Compare lenders and pick a loan option. Be sure to compare as many personal loan lenders as you can to find a loan that suits your needs. Consider not only rates but also repayment terms and any fees the lender charges. After you’ve done your research, choose the loan option you like best.
- Complete the application and get your funds. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as pay stubs or tax returns. If you’re approved, the lender will have you sign for the loan so the funds can be released to you. The time to fund for a personal loan is usually about one week — though some lenders will fund loans much faster.
Make sure to consider the following factors when shopping around for your $10,000 personal loan:
- Interest rates — Interest rates for personal loans typically 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.
- Fees — Be sure to check in with your lender to determine what type of fees they charge. Some lenders charge origination fees for processing the loan, while others may charge late fees or returned payment fees for non-sufficient funds. It’s also good to keep in mind that some lenders may charge you a penalty for paying off a personal loan early.
- 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 — The monthly payment for your personal loan 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 in interest and you’ll pay off your loan faster.
Before taking out a personal loan, remember to consider as many lenders as you can. This way, you can find a loan that works for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders that offer $10,000 personal loans in two minutes.
Your credit score is a major factor when it comes to qualifying for a personal loan. It also impacts the interest rates you might get. Generally, borrowers with good credit — usually a score of 670 or higher — will qualify for lower interest rates compared to borrowers with bad credit.
To get approved for a $10,000 personal loan, you’ll typically need a credit score of 620 or higher — though keep in mind that some lenders are willing to work with borrowers who have scores lower than this. If you have poor credit and can wait to get a personal loan, it might be a good idea to work on building your credit so you can qualify for better rates in the future.
How much you’ll pay for a $10,000 loan will depend on the interest rate you qualify for as well as your repayment term.
For example, borrowers with credit scores ranging from 720 to 779 qualified for personal loan interest rates averaging at 11.04% APR when they took out a three-year loan through Credible in July 2022. For a $10,000 loan at that rate, the borrowers would have a total repayment cost of $11,792.
In comparison, borrowers with scores from 640 to 679 received an average 24.24% APR while those with scores from 600 to 639 were offered 29.01% APR. Borrowers who got those 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’ll 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 your time to compare as many lenders as possible to find the right loan 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 vetted partner lenders.
Here are some answers to a few commonly asked questions regarding personal loans:
Can you get a personal loan with bad credit?
Yes, several lenders offer $10,000 personal loans to borrowers with bad credit. However, keep in mind that personal loans for bad credit typically come with higher interest rates compared to good credit loans.
If you’re struggling to get approved, another option is applying with a cosigner. Not all lenders allow cosigners on personal loans, but some do. Even if you don’t need a cosigner to qualify, having one could get you a lower interest rate than you’d get on your own.
How fast can you get a personal loan?
How fast 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 business days
- Banks and credit unions: One to seven business days
Online lenders are usually the quickest option — many offer approval decisions within minutes, which can help speed up the loan funding time. Some online lenders even offer next-day or same-day loans if you’re approved.
What can a personal loan be used for?
You can use a personal loan for almost any personal expense (though some lenders might have some restrictions). For example, you could get a personal loan to cover debt consolidation, medical bills, home improvements, and more.
Keep in mind that you might not be able to use a personal loan to pay for business ventures or post-secondary school expenses. Make sure to read the terms first so you know how you can use your loan.
If you’re ready to shop for a personal loan, remember to compare as many lenders as you can to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.