Best Lenders for a $5,000 Loan in 2025

Our guide to the best lenders for a $5,000 loan

Many personal loan lenders offer $5,000 loans that can be used for a variety of reasons. Here’s what makes our picks for the best $5,000 loan stand out.

Best Egg: Best for secured loans

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.

LendingClub: Best for debt consolidation

If you’re using a personal loan to consolidate debt, LendingClub will send the funds directly to your creditors, saving you this step. The lender may also discount your rate up to 5 percentage points if you opt for direct payment to your creditors.

LightStream: Best for home improvement

Offering same-day funding, no fees and wide repayment terms, LightStream is a solid option for financing home improvement projects.

SoFi: Best for good- or excellent-credit borrowers

SoFi doesn’t have a set credit score requirement, but the lender told NerdWallet its average borrower has a 745 credit score, which falls within the good-credit range.

Upgrade: Best for joint loans

Upgrade allows co-borrowers to apply for a $5,000 personal loan together. 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. A joint loan can also make sense if you plan on financing a shared expense.

Upstart: Best for fair- or bad-credit borrowers

Upstart uses an AI-based underwriting model that factors in criteria such as education level and work history rather than relying heavily on credit scores to determine loan eligibility. Borrowers with fair credit (scores from the mid-500s to the low 600s) or bad credit (scored from 300 to the high 500s) may have an easier time qualifying for a loan with Upstart than some other lenders.

» MORE: The best personal loan lenders

Estimated costs of a $5,000 loan

Your monthly payment for a $5,000 loan will depend on your annual percentage rate and loan term. A lower APR will give you smaller monthly payments and less overall interest. However, if your term is shorter, you’ll have a higher monthly payment but pay less in total interest.

Here are the costs you can expect to pay for a $5,000 loan at different rates and terms.

» 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 paid.

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, a 5% origination fee deducted upfront from a $5,000 loan would leave you with $4,750.

How to qualify for a $5,000 personal loan

Lenders typically review your credit, income and existing debt to determine whether you qualify for a personal loan. 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 in the mid-500s or higher.

Many lenders don’t publish requirements for income and debt, but you’ll generally want to make sure a new loan payment fits in your budget in addition to other monthly bills and expenses. A debt-to-income ratio of 36% or lower is often seen as ideal, though there are lenders that accept higher DTI ratios.

Tips for qualifying with bad credit

Having bad credit (a score from 300 to the high 500s) can limit your options for a personal loan, and if you do meet the lender’s requirements, the loan will likely have a higher APR.

You can 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, which requires pledging a valuable asset — typically a vehicle or savings account — as collateral.

» MORE: How to get a personal loan with bad credit

How to get a $5,000 loan

1. Check your budget and credit. Determine how much you can afford to pay on a personal loan each month. Review your credit report for any errors bringing down your score, like an incorrect account balance or an account in your name that you never opened. You can get your credit report for free with NerdWallet and dispute any errors to the three major credit bureaus — Equifax, Experian and Transunion — online or by phone or mail.

2. Pre-qualify with multiple lenders. Pre-qualifying for a personal loan allows you to preview your rate, term, loan amount and monthly payment without affecting your credit score. It usually only takes a few minutes to pre-qualify online, and pre-qualifying with multiple lenders allows you to compare offers to find the best fit.

3. Complete a formal loan application. The lender may ask for documents, like paystubs or tax returns, to support the information you provided during the pre-qualification process. You can expect the lender to do a hard credit check at this stage, which can cause your credit score to dip by a few points.

4. Sign the loan agreement and get funded. If your loan application is approved, you’ll need to read and sign the loan agreement so the lender can disburse funds. Most personal loans are funded within a week, though several lenders offer same- or next-day funding. Your first loan payment is typically due 30 days later.

Personal loan alternatives

Before applying for a $5,000 loan, consider borrowing options that may cost less than a personal loan.