There are times that monthly expenses overtake monthly income and your savings account. You may have been hit with unexpected bills, an emergency or went on a spending spree that you’re still trying to deal with. A personal loan can help you when you are faced with these situations. A $10,000 online personal loan is well suited as a debt consolidation loan to clean up credit card bills, car loans, medical expenses, and school expenses or to start a new business venture. 

There are great options for online personal loans and peer-to-peer loans on the Internet today. These loans can be very competitive ranging from $1,000 to $100,000 and it’s very simple to apply. In most cases, funds are placed in your bank account within 24 to 48 hours. Also, many online lenders have an option of using a co-signer if your credit score has been tarnished. 

The best part of an online personal loan is that they are very fast. Fill out the application and should have an answer back in minutes. Like most things that are fast, take a step back and take another look at the cost of this type of loan.

 Who will qualify?

If your credit score is above 600, you will probably qualify. Other qualifications from most lenders are a fulltime job, over 18 years old and an American citizen. Check each online lender’s criteria before applying. Not all lenders operate in every state. There will be times that you are not approved because that lender does not operate in your state and you will think it’s a problem with your credit. It may just be that the lender does not operate in that state. We list where lenders offer their services, so check the list of states of operation before applying. 

Unable to Quality?

If you are unable to qualify, search your free annual credit report and make sure everything on your report is as you’ve expected. If you are declined, take measures to improve your credit before applying for more loans and get your credit score above 600 as a minimum. 

Interest Cost Comparison

Online lenders, banks, and credit unions make their money from interest charges and service fees. This is a quick comparison of interest costs by credit score for a $10,000. online personal loan. This is interest only and does not include service fees as they vary by provider. 

Comparison at 36% 

  • Loan Amount: $10,000.
  • Loan Term: 36 months
  • Interest rate: 36%
  • Credit score: 550 - 600 
  • Monthly payment: $458.04 / month
  • Total interest on this loan: $6,489.37
  • Total repayment: $16,489.37

Comparison at 22%

  • Loan Amount: $10,000.
  • Loan Term: 36 months
  • Interest Rate: 22%
  • Credit score: 600-650 
  • Monthly payment: $381.90 / month
  • Total interest on this loan: $3,748.56
  • Total repayment: $13,748.56

 Comparison at 9%

  • Loan Amount: $10,000.
  • Loan Term: 36 months
  • Interest Rate: 9%
  • Credit score:  650-700
  • Monthly payment: $318.00 / month
  • Total interest on this loan: $1,447.90
  • Total repayment: $11,447.90

 Comparison at 4% 

  • Loan Amount: $10,000.
  • Loan Term: 36 months
  • Interest Rate: 4%
  • Credit score:  700+ 
  • Monthly payment: $295.24 / month
  • Total interest on this loan: $628.63
  • Total repayment: $10,628.63

 Check interest cost with this online Personal Loan Calculator 

Interest Rate charged by Credit Score 

The interest rate offered to you for an online personal loan will be based on the amount of risk a lender is willing to take based on your credit score, work history and education. A higher credit score will provide more lenders offering you money, longer payment, better terms and a lower interest rate. 

You will be offered interest rates around 20%-35% with a 600 credit score and as low as 4.25%-9% with a 750+ credit score. While these interest rates are only estimates, we want you to see the drastic difference in interest charges based on FICO credit scoring.  

Paying the Minimum on Your Credit Card

We have all been guilty of paying that minimum payment on our credit cards. We wanted to show you the horrible reality of how long it takes to pay off $10,000. if you only make the monthly minimum payment. (This does not include any dollar amount if you keep using the credit card.)

First, you will need to have a look at your credit card statement and find out what your credit card provider considers the minimum payment. Many credit card providers apply 2% to 4% of the balance as part of the minimum payment. Some credit card companies only apply 1% of the actual balance on the card as part of the minimum payment.  

See the Difference of a 1% minimum Payment and a 4% Minimum Payment. 

1% minimum payment towards the $10,000. balance owing 

$10,000. Credit Card balance paying the minimum payment only

  • Loan Term: 346 months (28.83 years)
  • Interest rate: 20%
  • Minimum Payment: 1%
  • Monthly payment: $266.67
  • Total interest on the credit card: $16,056.77
  • Total repayment:$26,056.77

4% minimum payment towards the $10,000. balance owing 

$10,000. Credit Card balance paying the minimum payment only

  • Loan Term: 172 months (14.33 years)
  • Interest rate: 20%
  • Minimum Payment: 4%
  • Monthly payment: $400.00
  • Total interest on the credit card: 6,989.28
  • Total repayment:$16,989.28

36% Personal Loan Listed Above

  • Loan Amount: $10,000.
  • Loan Term: 36 months
  • Interest rate: 36%
  • Credit score: 550 - 600 
  • Monthly payment: $458.04 / month
  • Total interest on this loan: $6,489.37
  • Total repayment: $16,489.37

Payment Discipline

Applying for the online personal loan forces us to deal with the principle and having this credit card payment dragging on for years will damage your credit score. Looking back, how did this card get in this position in the first place and will it happen again?   

Are There Any Restrictions On What A Online Personal Loan Can Be Used For? 

Most online lenders do not list restrictions on loan usage, although many lenders will ask what you are using the money for. 

Online Lenders Terms of Service

Online lenders that are listed on this site provide very clear rates, display their privacy policy and terms of service as well as fees like origination fees, early repayment and missed payments on their website. We recommend that you review all fees before accepting any offer.  

Finding the Best Online Personal Loan 

Finding the best online loan will depend on the amount of capital you require, your credit score, work/education history and your current debt to equity ratio. 

Online Lenders Cater to Specific Credit Scores

You will notice that lenders cater to specific credit scores. Listed here below are a couple of examples:

• SoFi is one of the online peer-to-peer lenders that offer personal loans from $5000 to $100,000. SoFi requires a minimum credit score of 700+, higher income levels of $85,000 / year and they review your education history. SoFi offers one of the best interest rates of all online lenders with no origination fees. Interest rates start in the 4% range, the best in the industry. SoFi offers to refinance loans in 49 states plus the District of Columbia. Residents of Nevada are not eligible for a refinance loan at this time

• Credible offers personal loans from $1,000 to $50,000 and you will know within a few minutes if you have been approved. The Credible group of online lenders includes Lending Club, Prosper, Avant, FreedomPlus, and Pave. They have all of these lenders built into one simple loan application to make it easy to apply. Credit scores vary by lender. Your credit score will need to be 660+ to apply. With so many lenders, they have personal loan products in all states

• Earnest offers personal loans from $2,000 to $50,000 and does not charge origination fees. Lower interest rates are based on your future potential and full financial profile, not just your FICO score. You will require a 680+ on your credit score to apply with interest rates starting at 5.25%. They Currently lend in AK, AZ, AR, CA, CO, CT, FL, GA, HI, ID, IL, IN, IA, KS, LA, ME, MD, MA, MI, MN, MO, MT, NE, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, SC, SD, TN, TX, UT, VT, VA, WA, , WV, WI,WY and D.C.

• LendingPoint’s application is fast, easy and you can apply online or on the phone. They now offer loans from $3,500 to $25,000 and have been expanding very quickly throughout America. They focus on fair credit scores of 600-680. This will require a soft pull that will not affect your credit score. LendingPoint states that they are able to look beyond a borrower’s FICO score and makes connections between traditional and nontraditional data to determine creditworthiness. Terms are from 24 to 48 months and interest rates range from 15.49% to 35.99%. Now Offering loans in: AR,AK,AZ,CA,DC,DE,FL,GA,HI,ID,IN,IL,KS,KY,MS,MI,MO,MT,NE,NC,NJ,NM,NH,OH,OK,OR,PA,SD,TN,TX,UT,VA,WA. 

Origination fees range from 0% to 6%

• If your credit score is below 600, OppLoan now offers online installment loans up to $4,000.00 catering to consumers with a tarnished credit score. An example of an OppLoan is $1,000 with 17 bi-weekly payments at $81, and an APR of 99%. Currently offering installment loans in the following states: AL, CA, DE, GA, ID, IL, MS, MO, NM, OH, SC, TX, UT, WI  

• America Loan Service provides a group of over 100 lenders with loans ranging from $100 to $35,000, credit scores starting at 550. Interest rates from 6.59% to 1,500% for short-term loans. This site offers safe and secure access with 256-bit encryption. Applying will not harm your credit score. Loans available from 2 weeks to 36 months. Lenders do not offer loans in the following states: AZ, ME, VT, AR, MD, WV, CT, MA, GA, NJ, NY, NC, PA 

You can view all of our lenders by selecting the product your searching for and inserting your current credit score at this link 

Pros of Unsecured Personal Loans

Most online lenders offer unsecured loans. An unsecured loan does not require you to use your assets as collateral and you will receive your money very quickly. An unsecured loan can offer highly loan amount than secured loans. Yes, higher. The secured loan will be limited to the asset you are securing.  An unsecured loan is a lot easier for the lender to prepare. Less paperwork and less documentation. The lender does not have to appraise your asset to determine a loan value.

Cons of Unsecured Personal Loans

The downside of unsecured loans is that the lender has to take on more risk and this could cost you by having to pay higher interest rates. You will damage your reputation and credit rating if you default.  

Personal Online Loan Documentation 

The information required to apply online or at a bank/credit union is similar. To save yourself some time before you apply, here are the questions you will be asked on most loan applications. 

Personal Information  

The online personal loan and peer-to-peer lenders with ask for the following information, some will vary slightly:

  • • The amount of money you would like to borrow 
  • • What the loan will be used for 
  • • Your credit score  
  • • Date of birth 
  • • Military history
  • • Current drivers license
  • • Social security number
  • • Are you an America Citizen

Contact Information 

  • Address 
  • Zip code
  • State
  • Telephone number 
  • Email address

Employer Information

  • Employment history 
  • Employer contact information
  • W-2 for proof of employment
  • Depending on the type of funding, they may want the days of the month that you are paid. (This is typical with short-term loans)
  • Government/state I.D. 

Banking Information

  • Lenders will require your banking information including your routing or ABA number on your checks. (This is the first 9 digits on your check) 
  • Your account type, (checking or savings) 
  • Bank account number
  • Most current bank statement
  • Zip code. (if you have a 4 digital zip and its telling you that it does not work, add a 0 to the front of the number)
  • Void Check for auto withdrawal from your checking account
  • Bank name and how long you’ve been with the bank. The address of the bank may also be required

You can usually get all of this banking information from your check or bank statement

How Much Can I Borrow?

The amount you can borrow online will depend on your credit score, work history, education and if you want a secured or unsecured loan. Here is a breakdown. 

Unsecured Loans

The breakdown of the amount you can borrow from most lenders will depend on your credit score and work history. The amounts we are using come from our own research based on the lenders we’ve worked with over the past 10 years. Consider this only an estimate. Online lenders will vary slightly on how they determine their lending criteria.

Here is a quick breakdown:

Online loan amount estimates by credit score: 

  • under 600     $100-$5,000
  • 600-659        $3,500-$25,000
  • 660-700        up to $50,000
  • 701-850        up to $100,000

Secured Loans

If you have the assets like a home or auto that is paid off, we recommend you check your options with a local credit union or bank. It will take a bit of time to have your property or vehicle appraised but you should be offered a better interest rate when the lender has your assets for security. The amount you can borrow will be a percentage of the value of your asset.  

Personal Financial Statement

Some lenders will require a breakdown of your debt in comparison to your annual income to see if you can manage your payments. The lenders will want to know if you can afford the new monthly payment with your current monthly expenses.  

The personal financial statement is also referred to as the net worth statement and debt to equity. It explains your income and assets on one side and your debt on the other side of the page. It provides you and the lender a snapshot of your wealth at a moment in time and acts as a measurement of your financial wellbeing. This is a great tool to complete every year for yourself to see if you’re headed in the right direction. The goal of completing this financial statement will be to see if you have the ability to repay the loan your requesting.

When you start looking for a Loan, these are some of your options.

1) Banks

Meeting with your bank is a good place to start. Explain that you want to apply for a loan and you have already completed a personal financial statement. Have a copy of your income from last year on hand for easy reference. Your bank already knows you and your financial history. They will ask you all of the questions all of the others lender with want to know as well. It’s a safe place to start. If your current bank will not loan you the money, you are now prepared to go to any other lender.

It is ok to move onto another lender and use what you have learned from this first attempt to strengthen your loan application. 

2) Credit Unions

Credit unions are another avenue where you can look for a personal loan if you’ve not been approved from your bank. Differing from banks, credit unions are non-profit organizations that are owned by individuals who function as a cooperative unit. Often enough, they are willing to help approve loans for bad credit borrowers, when other institutions are not. If this is an option you want to consider, you can look up credit unions in your area and compare their interest rates and fees. 

3) Online Personal Loan Provider

Many personal lenders are considered online banks. They offer fees and interest rates comparable to the banks and credit unions.

4) Peer-to-Peer Lender

If you are unable to obtain a loan from a bank or credit union, a great alternative is a Peer-to-Peer Lender. This is an online lender providing capital from individuals instead of a traditional bank. Peer-to-Peer lenders do offer competitive interest rates. This lender will pull your credit rating but are often more flexible with providing loans if you have fair or poor credit. 

5) Co-signer

The greatest benefit of a co-signer is the person co-signing may have a longer work history and/or better a credit rating. This will benefit you with a lower interest rate charge. Remember, your parent, grandparent or friend is on the hook if you default.

6) Rebuilding Your Credit

Sometimes, you will hit a wall and not be able to secure the loan you want right away. If this is the case, you may need to take steps to rebuild your credit score before you reapply.  Make sure to pay all outstanding payments on time and at least pay the minimum balance. Since your credit rating is comprised of 35% of your payment history, it is important to stay on top of this. You may also choose to seek help from of a financial advisor or counselor to help you take further steps to improve your credit. There are a variety of these professionals in your city, who you can consult. As your credit score begins to rise, you will find more loan options are available with better interest rates.

7) Installment Loans with Bad Credit

You can seek out an installment loan if you require a small personal loan usually under $1,000. Installment lenders provide short-term loans to individuals, despite their credit scores with extremely high-interest rates. You can borrow a lower amount of money for a timeframe of approximately one year. 

Best online Personal Loan Option by Credit Score 

Credit Score 600-680 

This credit score group is very difficult to assess. There are lenders like LendingPoint that will lend up to $25,000 with a credit score as low as 600 while other lenders will consider a credit score of 649 poor credit.  LendingPoint is one of few online lenders that offer 600 as fair credit.   

Credit Score 700-850

In this credit score range, you will have all of the options available to you and interest rates around the 5% to 9% range with a strong monthly income.  

Credit Score 400-600 

There are a few lenders that will offer a loan with a credit score below 599. Many lenders that do offer loans below 599 do not use the FICO scoring system. They use other reporting agencies like DataX. Lenders will look at job history and the reason your credit score is at this level. The bad credit lenders that we have researched will lend up to $5,000. 

Payday and Installment Loan

Payday and installment loans with interest rates reaching 1500% on payday loans and over 100% on installment loans. The rates are high because the payment term is short. Payday loans are meant to be a few weeks long. If you are forced to take an Installment loan, try to keep the term to 12 months and the loan amount under $1,000. 

Check out lenders for bad credit right here 

Secured Loan with Bad Credit

If you have the security of any kind, we would recommend contacting a local credit union. They will look at your assets for security and can help you get a fresh start. Security could be land, house, condo, automobile,  gold or other types of asset that has value. They have a reasonable maximum interest rate for bad credit loans as well. Last time we checked it was 22%. 

Car Title Loan

If you have a vehicle that is paid off, this can be used as an asset to secure a loan. They call this a Car title loan. Check with a local credit union to use your vehicle as collateral. We recommend that you stay away from car title loan providers that charge extreme interest rates. 

Friends and Family Auto Loan

This is also a good time to talk to friends or family. Sign over your vehicle until the loan is repaid. 

What to look for when Searching Online Personal Loan lender sites 

  • Fee schedule: Lenders have fees for items like origination fees, late payment fees, and prepayment penalties. What we see is the standard with many lenders is a maximum 6% origination fee, late fees around $25 or a 5% prepayment. Shop around, as many lenders do not have any of these fees
  • Lenders will have all of these fees and schedules listed in their terms and conditions. The fees should also be highlighted when you apply for the loan
  • When you go to the lender's site, you will see information on the lenders including third-party reviews and the better business bureau (BBB). Take the time to read these reviews and see what others have experienced with the lender
  • With most lenders, they have you complete the amount of money you are looking for and they display of their site the minimum and maximum amounts they lend 
  • Make sure to check what state the lender operates in. You may apply and be turned down only because they do not operate where you are applying