A $5,000 loan can be used to consolidate debt, finance home repairs or fund another expense. Pre-qualify with multiple lenders and compare rates.
Checking rates is free and won't impact your credit score.
Best for no fees
2025 NerdWallet award winner
7.99 - 24.99%
$2.5K - $40K
660
3 to 7 years
Best for co-signed loans
2025 NerdWallet award winner
7.74 - 35.99%
$1K - $50K
600
2 to 7 years
Best for debt consolidation
2025 NerdWallet award winner
7.90 - 35.99%
$1K - $60K
600
2 to 7 years
Best for home improvement
2025 NerdWallet award winner
6.49 - 24.89%
$5K - $100K
660
2 to 7 years
Best for secured loans
6.99 - 35.99%
$2K - $50K
600
3 to 5 years
Best for borrowers with fair or bad credit
6.70 - 35.99%
$1K - $75K
None
3 to 5 years
Best for borrowers with good or excellent credit
2025 NerdWallet award winner
8.74 - 35.49%
$5K - $100K
None
2 to 7 years
Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.
30+
Lenders reviewed
We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.
25+
Categories assessed
Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.
60+
Data points analyzed
Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.
We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points 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.
Our top selections for the best $5,000 loan have affordable rates, fast funding and can be used for a variety of reasons. Here’s what makes our picks stand out.
Unlike many other lenders, Discover doesn’t charge origination fees or any other fees that can make a personal loan more costly.
Upgrade allows borrowers to apply for a $5,000 personal loan with a co-signer. This can be useful if you need to add someone with better credit or a higher income to your loan application to strengthen your chances of approval.
LendingClub can send loan funds directly to a borrower’s creditors, streamlining the debt consolidation process. The lender may also discount your rate up to 5 percentage points if you opt for direct payment to your creditors.
Offering same-day funding, no fees and wide repayment terms, LightStream is a solid option for financing home improvement projects.
Best Egg lets borrowers secure personal loans with either a vehicle or household fixtures, like kitchen cabinets or bathroom vanities. Using collateral to secure a personal loan may give borrowers a better chance of qualifying or getting a lower rate.
Upstart factors in criteria such as education level and work history rather than relying heavily on credit scores to determine loan eligibility. Borrowers with bad or fair credit (scores up to the low 600s) may have an easier time qualifying for a loan with Upstart than some other lenders.
SoFi told NerdWallet it seeks borrowers with good or excellent credit, and its average borrower has a 745 credit score. This lender offers perks that borrowers with good and excellent credit may expect, such as multiple rate discounts, same-day funding and wide repayment terms.
» COMPARE: the best personal loans
Your monthly payment for a $5,000 loan will depend on your annual percentage rate and repayment term. Personal loans typically range from about 7% to 36% APR, with the lowest rates usually going to applicants with the highest credit scores. A lower APR will give you smaller monthly payments and less interest costs overall.
Term length also determines how much you pay. The shorter your repayment term, the less you’ll pay in total interest. However, your monthly payments will be higher than if you spread out your payments over a longer term length.
Here are the costs you can expect to pay for a $5,000 loan at different rates and terms.
Term | APR | Monthly Payment | Total Interest |
|---|---|---|---|
2 years | 14% | $240 | $762 |
2 years | 20% | $254 | $1,108 |
5 years | 14% | $116 | $1,980 |
5 years | 20% | $132 | $2,948 |
» MORE: How to choose the best personal loan term length
Use a personal loan calculator to see how various rates and terms affect monthly payments and total interest.
Estimated monthly payment
$309.92
Total interest over 3 years
$1,156.95
Total loan payment
$11,156.95
Loan amount
$10,000
Interest rate
7.25%
Loan term (years)
3
Your personal loan may also include fees. One common personal loan fee is an origination fee, which is typically 1% to 10% of the loan amount.
Lenders often deduct this fee from your loan before disbursing the funds. For example, say you take out a $5,000 loan with a 5% origination ($250). That fee would likely be deducted upfront and leave you with $4,750.
Lenders typically review your credit, income and existing debt to determine whether you qualify for a personal loan.
Credit. Having good or excellent credit (a score in the mid-600s or higher) gives you a better chance of loan approval. However, some lenders accept borrowers with credit scores starting in the mid-500s.
Income. Many lenders don’t publish requirements for income. Generally, you want to make sure you have enough income to cover a new loan payment plus your other monthly bills and expenses.
Debt. Lenders assess how much debt you have in relation to your income. A debt-to-income ratio of 36% or lower is often seen as ideal, though lenders may accept higher DTI ratios.
Having bad credit (a score under 600) can limit your options for a personal loan. If you do meet the lender’s requirements, the loan will likely have a higher APR.
You could increase your odds of loan approval or a lower APR by applying with a co-signer or getting a joint loan with a co-borrower who has better credit or a higher income.
You could also boost loan approval odds by opting for a secured personal loan. This requires pledging a valuable asset — typically a vehicle or savings account — as collateral.
» MORE: How to get a personal loan with bad credit
Before applying for a $5,000 loan, consider borrowing options that may cost less than a personal loan.
If a personal loan is the best option for you to borrow $5,000, pre-qualify through NerdWallet to compare offers from top lenders.
Pre-qualification only takes minutes and does not impact your credit score.
There are some lenders that approve loans for borrowers with credit scores in the mid-500s. However, lenders may deny applications for lower scores. Adding a co-signer or co-borrower or putting down collateral could strengthen your odds of getting a $5,000 loan with bad credit.
Most lenders don’t publish income requirements. Still, they want to see that you earn consistent income. They also want to make sure you can cover monthly loan payments plus your other financial obligations. Aim for a debt-to-income ratio no more than 36%.
You can often get a personal loan within a day of approval. Funding time depends on the lender and how quickly you submit the necessary information. A few lenders, including SoFi, Discover and LightStream, offer same-day funding. Lenders such as Best Egg, LendingClub, Upgrade and Upstart offer next-day funding.
