Best Small Personal Loans of July 2024
Compare small personal loan options and borrowing alternatives.
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A small personal loan can help you bridge an income gap or cover an emergency, such as a vet bill or car repair. Even if you urgently need cash, it’s useful to compare financing options before getting a loan because you may find a cheaper one.
These lenders offer small personal loans with starting amounts from $250 to $2,000:
Navy Federal: Loans starting at $250.
Oportun: Loans starting at $300.
First Tech: Loans starting at $500.
LendingClub: Loans starting at $1,000.
Upgrade: Loans starting at $1,000.
Upstart: Loans starting at $1,000.
Universal Credit: Loans starting at $1,000.
OneMain: Loans starting at $1,500.
Best Egg: Loans starting at $2,000.
LendingPoint: Loans starting at $2,000.
Prosper: Loans starting at $2,000.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Compare the best small personal loans
NerdWallet reviewed more than 35 financial institutions to find the best small personal loans. These are our top picks.
Best for small loans starting at $250
- Wide range of loan amounts.
- Fast funding.
- Rate discount for some customers.
- Co-sign, joint and secured loan options.
- Direct payment to creditors with debt consolidation loans.
- Exclusive to credit union members.
- No option to pre-qualify with a soft credit check.
- No option to choose or change your payment date.
- Rate discount for military members.
- Offers same-day funding.
Best for small loans starting at $300
- Option to pre-qualify with soft credit check.
- Co-sign and limited secured loan options.
- Accepts borrowers new to credit.
- Small loans starting at $300.
- Community Development Financial Institution.
- May charge an origination fee.
- High rates.
- No option to change your payment date.
- Accepts borrowers with no credit score.
- Offers hardship program.
Best for small loans starting at $500
- Option to pre-qualify with a soft credit check.
- Co-sign and joint loan options.
- Wide range of loan amounts.
- Wide range of repayment term options.
- Fast funding.
- Exclusive to credit union members.
- No option to choose or change your payment date.
- No direct payment to creditors with debt consolidation loans.
- No rate discount.
- Can add a co-borrower or co-signer to your loan application.
- Offers same-day funding.
Best for small loans starting at $1,000
- Joint loan option.
- Direct payment to creditors with debt consolidation loans.
- Option to pre-qualify with a soft credit check.
- Option to change your payment date.
- Origination fee.
- Member Center to help customers manage their money.
- Can fund loans in two business days.
Best for small loans starting at $1,000
- Secured and joint loans.
- Multiple rate discounts.
- Mobile app to manage loan payments.
- Direct payment to creditors with debt consolidation loans.
- Long repayment terms on home improvement loans.
- Origination fee.
- No option to choose your payment date.
- Low minimum credit score requirement.
- Can fund loans in one day.
Best for small loans starting at $1,000
- Accepts borrowers new to credit.
- Fast funding.
- Option to change your payment date.
- Option to pre-qualify with a soft credit check.
- Seven-day customer service availability.
- May charge origination fee.
- No joint or co-signed loans.
- No direct payment to creditors on debt consolidation loans.
- Most borrowers receive instant approval decision.
- Can fund loans in one business day.
Best for small loans starting at $1,000
- Offers direct payment to creditors with debt consolidation loans.
- Fast funding.
- Offers multiple rate discounts.
- Offers free credit score access.
- Charges origination fee.
- Borrowers can choose from only two repayment term options.
- Customized credit-building recommendations.
- Loan funds can be sent in one business day.
Best for small loans starting at $1,500
- Option to choose and change your payment date.
- Joint and secured loans.
- Fast funding.
- Direct payment to creditors on debt consolidation loans.
- Rates are high compared to other lenders.
- Charges origination fee.
- No rate discounts.
- Limited loan amounts.
- Borrowers can use vehicle as collateral for secured loan.
- Can fund loans in one to two business days.
Best for small loans starting at $2,000
- Option to pre-qualify with a soft credit check.
- Wide range of loan amounts.
- Unsecured and secured loan options.
- Direct payment to creditors with debt consolidation loans.
- No late fees.
- Origination fee.
- No rate discounts.
- No option to choose initial payment date.
- No mobile app to manage loan.
- Borrowers can use home’s fixtures as collateral for secured loan.
- Can fund loans in one business day.
Best for small loans starting at $2,000
- Instant approval.
- Joint loan option.
- Hardship program for borrowers in need.
- Mobile app to manage loan.
- No rate discount.
- Charges origination and late fees.
- No direct payment to creditors with debt consolidation loans.
- Wide range of loan amounts and terms.
- Next-day funding may be available for approved borrowers.
Best for small loans starting at $2,000
- Soft credit check to pre-qualify.
- Fast funding.
- Offers mobile app to manage loan payments.
- Option to change your payment date.
- Free credit score access.
- May charge an origination fee.
- Reports payments to two of the three major credit bureaus.
- No joint, co-signed or secured loans.
- Does not directly pay creditors with debt consolidation loans.
- Free credit score monitoring and budgeting assistance.
- Same- or next-day funding available.
» COMPARE: See your bad-credit loan options
What is a small loan?
A small loan is generally a personal loan for less than $2,500. Repayment terms vary widely, but reputable lenders give you at least a few months to repay a small loan.
Annual percentage rates 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 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 long repayment term means 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.
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 range from selling clothes to walking dogs.
Seek assistance from local nonprofits, charities and religious organizations for help with things 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 July 1, 2024
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender 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 July 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
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 two 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 is available for $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.
