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If you need to cover personal expenses, a personal loan can be a good option. Here’s what you need to know before getting a $10,000 personal loan. (iStock)
Whether you need to consolidate credit card debt, remodel your bathroom, or cover any other major expense, a personal loan can be a great option. 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 the loan that best suits your needs.
Here’s what you need to know before getting a $10,000 personal loan.
Here are some 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 offer both large and small personal loans and often offer competitive rates to qualified borrowers.
Funding times for online loans are usually a week or less – although some lenders will fund the loan on the same or the next business day after approval. This can make online lenders one of the best options if you need fast personal loan,
Before taking a personal loan, make sure to consider as many lenders as possible to find the right loan for you. you can Compare your pre-qualified rates From partner lenders of Credible 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 can be a good option if you prefer to apply for the loan in person – although you may also have the option of applying online depending on the lender.
While online lenders are convenient, banks and credit unions sometimes offer their own benefits. For example, if you already have an account with them, you may qualify for a rate discount. Also note that because credit unions are non-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 they have to offer. Before applying, consider checking your credit so you know where you stand. You can use a site like AnnualCreditReport.com to review your credit report for free. If you find any errors, dispute them with the appropriate credit bureaus to potentially raise your score.
- Compare lenders and choose loan options. Be sure to compare as many personal loan lender As you can find a loan that suits your needs. Consider not only the rates but also the repayment terms and any charges the lender may levy. After doing your research, choose the loan option that suits you best.
- Complete the application and receive your money. Once you’ve chosen a lender, you’ll need to fill out a complete application and submit any required documents, such as pay stubs or tax returns. If you are approved, the lender will have you sign for the loan so that the funds can be released to you. The funding time for a personal loan is usually about a week – although some lenders will fund the loan much faster.
Be sure to consider the following factors when shopping for your $10,000 personal loan:
- Rate of interest – The interest rates for personal loans usually range from 3.99% to 35.99%. However, the rate you get will be affected by your credit, the amount you borrow, the repayment term and the lender you choose.
- charge – Be sure to check with your lender to determine what kind of fees they charge. Some lenders charge an origination fee to process the loan, while others may charge a late fee or payback fee for non-sufficient funds. It is also good to note that some lenders may charge you a penalty for paying off the personal loan early.
- Repayment Terms – Personal loan repayment terms typically range from one to seven years, depending on the lender. Your repayment period will affect your monthly payment and the total 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 tenure results in lower monthly payments, but increases with more interest paid over time. Lower repayment terms mean higher monthly payments, but you’ll pay less in interest and you’ll pay off your loan faster.
Before taking a personal loan, remember to consider as many lenders as you can. That way, you can find a loan that works for you. Reliable Makes It Easy—You Can Compare your pre-qualified rates From several lenders that offer $10,000 personal loans in two minutes.
Your credit score is a major factor in qualifying for a personal loan. It also affects the interest rates you get. In general, borrowers with good credit — typically a score of 670 or higher — will qualify for lower interest rates than borrowers with bad credit.
To be approved for a $10,000 personal loan, you’ll typically need a credit score of 620 or higher – although keep in mind that some lenders are willing to work with borrowers whose scores are lower. If you have bad credit and can’t wait to get a personal loan, it might be a good idea to work on it. build your credit So that you can qualify for better rates in 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 qualify for personal loan interest rates Average 11.04% APR in July 2022 when taking a three-year loan through Credible. For a $10,000 loan at that rate, borrowers’ total repayment cost would be $11,792.
In comparison, borrowers with a score of 640 to 679 received an average APR of 24.24%, while those with a score of 600 to 639 were offered an APR of 29.01%. Borrowers achieving those rates on the 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 big 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 the loan using credibles. personal loan calculator,
if you are ready to get personal loanTake 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 form, you can view your pre-qualification rates from each of Credible’s verified partner lenders.
Here are answers to some commonly asked questions regarding personal loans:
Can you get a personal loan with bad credit?
Yes, many lenders offer $10,000 personal loans to borrowers with bad credit. However, keep in mind that personal loan for bad credit Generally good credits come with higher interest rates than 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, you may find yourself at a lower interest rate.
How soon can you get a personal loan?
How fast you can get a personal loan depends on the type of lender you use. Here are 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 fastest option – providing approval decisions in several minutes, which can help speed up loan financing times. Some online lenders also offer next day or same day loan If you are approved.
What can a personal loan be used for?
You can use a personal loan for almost any personal expense (although some lenders may have some restrictions). For example, you can get a personal loan to cover debt consolidationmedical bill, Home improvementeven more.
Keep in mind that you may not be able to use a personal loan to pay for business ventures or post-secondary school expenses. Be sure to read the terms first so you know how you can use your loan.
if you are ready to shop for personal loansRemember to compare as many lenders as possible to find the right loan for you. Reliable makes it easy – you can compare your pre-qualified rates from multiple lenders in under two minutes.