Where to Find $10,000 Loans, and What They’ll Cost You
A $10,000 personal loan can be a useful financial tool, whether you want to consolidate high-interest debt, cover an emergency expense or pay for a home improvement project. Of course, there are cases where you may want to borrow more or less than that amount.
But if you’re searching for $10,000 loans, you can learn about a few lenders that offer them, and how to shop for the best deal for your financial situation.
- How to get a $10,000 loan
- These lenders offer $10,000 personal loans
- What are the monthly payments on a $10,000 loan?
- Can you get a $10,000 loan with bad credit?
How to get a $10,000 loan
There’s more than one way to borrow money. So, the first step in finding the best loan for your situation is to consider your available choices.
Below are three common options for borrowers who want a $10,000 loan.
|3 loan types to consider|
|What it is||Pros||Cons|
|Personal loan||A type of unsecured installment loan with a fixed interest rate and repayment period. Terms typically last 12 to 60 months.||
|Secured personal loan||A type of secured installment loan that requires collateral but that has terms similar to a traditional personal loan.||
|Home equity loan||Another type of secured financing. The equity in your home serves as collateral and influences the maximum amount you can borrow.||
These lenders offer $10,000 personal loans
In many cases, an unsecured personal loan may be your best option if you have strong credit and are looking to consolidate debt (though a balance transfer credit card may be another viable option). They’re also a solid option for handling a major expense, like a wedding, or if you need to access emergency funds fast.
That’s because you won’t need to put up collateral to qualify. Granted, a home equity loan can make better sense for home renovations if you’d qualify for a tax deduction — but even then, if you’re risk-averse, an unsecured personal loan may make more sense.
|APR||3.49% – 19.99% (with AutoPay)||7.99% – 29.99%||5.99% – 29.99%|
|Loan amount||$5,000 – $100,000||$7,500 – $40,000||$2,000 – $35,000|
|Term lengths||24 to 144 months||24 to 60 months||36 or 60 months|
|Origination fee||No origination fee||1.99% - 4.99%||0.99% - 6.99%|
|Lenders were selected based on the lowest minimum APR in the MagnifyMoney marketplace, assuming: A) minimum $10,000 loan amount B) excellent credit (720-850) and C) zip code 11220. MagnifyMoney is owned by LendingTree.|
Follow these steps to apply for a personal loan
- Determine how much money you want to borrow: You may need to list your desired loan amount on your loan application. As a general rule, it’s a good idea to minimize the amount of debt you take on.
- Check your credit: It’s smart to know the condition of your credit before applying for a personal loan. You can request a free copy of each of your credit reports from the major credit bureaus every 12 months on AnnualCreditReport.com. If you find credit reporting errors, you can dispute them.
- Research lenders: Different personal loan lenders have different credit requirements. Once you know where your credit stands, you can narrow down your search.
- Compare loan offers: Most lenders allow you to see potential rates you’d qualify for with a soft credit check, which doesn’t affect your credit. Compare your favorite lenders by considering factors such as: APR, available terms and borrowing limits and their fee structures.
- Formally apply: Once you’ve found a personal loan offer you like, you can fill out a formal loan application. This will result in a hard inquiry of your credit report.
- Submit additional materials: A lender may require additional documents to process your loan application. For example, you may need to provide copies of your driver’s license, bank statements or tax returns.
- Receive loan funds: Once your application is approved, you can expect loan funding within a few business days. Some lenders release loan funds the same day your application is approved. Funds are most often disbursed to your bank account.
What are the monthly payments on a $10,000 loan?
The monthly payments on a $10,000 personal loan can vary widely from one borrower to the next and among different lenders, as well. Your lender will consider a number of factors to determine your eligibility for a loan, and the cost at which they’d offer you. Your credit and income will be heavily weighed.
Major factors that influence your monthly payment include:
- Interest rate
- Loan amount
- Repayment term
The amount you borrow and for how long are two factors you have a lot of control over. Check out the table below to see cost differences for the same loan with a 36 and 60 month repayment term.
|How much a $10,000 personal loan costs with a 7.63% APR*|
|Term||36 months||60 months|
|Interest per payment||$33.88 average||$34.33 average|
|Total interest paid||$1,219.74||$2,059.87|
|Total amount repaid||$11,219.74||$12,059.87|
|* Average annual percentage rate extended to personal loan customers with credit scores of 720+ in Q4 2019, according to our study on personal loan statistics.|
Can you get a $10,000 loan with bad credit?
You may have seen advertisements guaranteeing approval for bad credit loans. However, promises like these should be a giant red flag. The truth is, it’s difficult to find big loans for bad credit.
That’s not to say that qualifying for a personal loan with bad credit is impossible, but you should approach the process with realistic expectations. A $10,000 loan would be much harder to qualify for than, say, a $1,000 loan with bad credit. That’s because the larger the loan amount, the greater the risk to the lender.
Beware payday and title loans
When emergencies arise, borrowers with credit challenges often feel forced to turn to predatory lenders that feature high fees and lower loan amounts. Payday loans and title loans both tend to fit into this category.
Payday loan amounts are generally on the smaller side ($500 or less), while some title loans may reach as high as $10,000. If you’re researching how to get a $10,000 loan with bad credit, a title loan may offer you a potential solution.
Before you apply for this type of financing, though, consider the following: Payday and title loans may be easier to qualify for when you have credit challenges, but they can set you up for worse financial problems in the future. The APR on these loans can reach as high as 300% (title loans) to nearly 400% (payday loans).
Quick tips to improve your odds of loan approval
If you’re worried that bad credit will keep you from qualifying for the loan you want, there are a few tips that could help, now and in the future.
- Get a cosigner: The most immediate solution that might help you borrow money with bad credit is asking a loved one with good credit to cosign for you. Yet cotasigners take on considerable risk, as they’re just as responsible for the debt as the primary borrower (that’s you). If you pay late, it could damage your loved one’s credit rating as well as your own.
- Consider an alternative: If you can get by with a smaller loan amount, a payday alternative loan (PAL) from a local credit union could be a better fit. With a PAL, you might qualify to borrow up to $2,000 and the maximum interest rate is capped at 28%.
- Work on your credit first, and try again later: The first thing most lenders consider when you apply for a loan is the condition of your credit. Working hard to improve your credit now might help you qualify for more financing options with better rates and terms down the road.
Still, even if you have excellent credit, it can pay off to do your research before you commit to a loan. On a $10,000 personal loan, a lower interest rate has the potential to save you hundreds and sometimes thousands of dollars over the life of your loan.