Small Personal Loans: Best Lenders for a $1,000 Loan in 2025
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A $1,000 loan or similar small personal loan can help you cover important expenses, such as a vet bill or car repair, without borrowing more than you need.
| Lender | NerdWallet rating | Est. APR | Loan amount | Min. credit score | Learn more |
|---|---|---|---|---|---|
5.0/5 Excellent for small loans starting at $1,000 | 7.90-35.99% | $1,000-$60,000 | 600 | See my rateson NerdWallet's secure website | |
5.0/5 Excellent for small loans starting at $1,000 | 7.74-35.99% | $1,000-$50,000 | 600 | See my rateson NerdWallet's secure website | |
4.5/5 Excellent for small loans starting at $1,000 | 6.70-35.99% | $1,000-$75,000 | None | See my rateson NerdWallet's secure website | |
4.5/5 Excellent for small loans starting at $1,000 | 11.69-35.99% | $1,000-$50,000 | 560 | See my rateson NerdWallet's secure website |
Best for
small loans starting at $1,000
LendingClub
7.90-35.99%
$1,000-$60,000
600
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LendingClub loans start at $1,000 to borrowers with fair or good credit. The lender doesn't offer some of the features you'll find at other online lenders, but offers to help borrowers manage their credit and budget.
- Option to pre-qualify with a soft credit check.
- Direct payment to creditors with debt consolidation loans.
- Same- or next-day funding.
- Has a joint loan option.
- Options to choose and change your payment date.
- Charges an origination fee.
- Minimum credit score: 600
- Maximum debt-to-income ratio: 40%.
- Must be at least 18 (or the age of majority in AL, MS or NE).
- Must be a U.S. citizen, provide a Social Security number and provide proof of residency.
- Must have a valid U.S. bank account, government-issued photo ID and email address.
- Must provide proof of employment or income.
- Origination fee: 0% to 8%.
- Late fee: $15 or 5% of the unpaid amount, whichever is greater.
- Insufficient funds fee: $15.
Upgrade
7.74-35.99%
$1,000-$50,000
600
View details Close details
Upgrade offers personal loans starting at $1,000 to borrowers with low credit scores. The lender offers credit-building tools and rate discounts that make it a solid option for those looking to build credit.
- Multiple rate discounts.
- Allows secured and co-signed loans.
- Fast funding.
- Wide variety of repayment term options.
- Origination fee.
- No option to choose your payment date.
- Minimum credit score: 600.
- Minimum annual income: None.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum credit history: 3 years and 1 account.
- Must be a U.S. citizen and provide a valid Social Security number, email address, proof of residency and U.S. bank account.
- Origination: 1.85% to 9.99%.
- Late fee: Undisclosed.
Upstart
6.70-35.99%
$1,000-$75,000
None
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Upstart offers personal loans starting at $1,000 and says it can fund most loans one business day after a borrower signs a loan agreement. This lender uses alternative data to help borrowers with fair credit and those with thin credit histories qualify.
- Accepts borrowers from across the credit spectrum.
- Same- or next-day funding.
- Has a secured loan option.
- Wide range of loan amounts.
- Origination fee.
- Only two repayment term options.
- No joint or co-signed loans.
- No direct payment to creditors on debt consolidation loans.
- Must be at least 18 years old in most states.
- Must have a valid U.S. bank account, U.S. residential address and email address.
- Must provide valid Social Security number.
- Must provide verifiable source of income.
- Minimum credit score: None.
- Minimum annual income: None.
- Maximum debt-to-income ratio: 50%, not including rent or mortgage, in most states.
- Origination: 0% to 12%.
- Late fee: 5% of the unpaid amount or $15, whichever is greater.
- Insufficient funds fee: $15.
Universal Credit
11.69-35.99%
$1,000-$50,000
560
View details Close details
Universal Credit is owned by Upgrade, but focuses its loans more directly on bad-credit borrowers. Its origination fee is a bit higher than Upgrade's, but Universal Credit borrowers get access to many of Upgrade's features.
- Direct payment to creditors with debt consolidation loans.
- Same- or next-day funding.
- Multiple rate discounts.
- Wide range of loan amounts.
- Charges an origination fee.
- No co-signed, joint or secured loan options.
- Minimum credit score: 560.
- Minimum credit history: Two years and one account.
- Maximum debt-to-income ratio: 75%, including mortgage.
- Must be at least 18 (or the age of majority in AL, MS or NE)
- Must be a U.S. citizen, have a Social Security number and provide proof of residency.
- Must have a valid U.S. bank account and email address.
- Origination fee: 5.25% to 9.99%.
- Late fee: Undisclosed.
Estimated monthly payments for a $1,000 loan
Monthly payments on a personal loan are determined by your loan amount, APR and repayment term. Annual percentage rates tend to range between 6% and 36%, and repayment terms typically range from two to seven years.
Here are monthly payments for a three-year, $1,000 loan using estimated APRs for each credit score rating:
Borrower credit rating | Estimated APR | Monthly payment |
|---|---|---|
Excellent (scores from 720 to 850). | 11.81%. | $33.12. |
Good (scores from 690 to 719). | 14.48%. | $34.41. |
Fair (630 to 689). | 17.93%. | $36.12. |
Bad (300 to 629). | 21.65%. | $38.01. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from January 1, 2024, through December 31, 2024. Rates are estimates only and not specific to any lender. The lowest credit scores — usually below 500 — are unlikely to qualify. Information in this table applies only to lenders with maximum APRs below 36%.
Your loan’s APR might vary from the average. Use a personal loan calculator to estimate monthly payments at different rates and repayment terms. Check your budget to ensure you can afford the additional recurring expense.
How to get a small 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. A DTI ratio of 36% or lower shows lenders you can likely handle a new loan. Some lenders will accept higher ratios.
Pre-qualify with multiple lenders. Pre-qualifying for a personal loan lets you see your estimated annual percentage rate and loan terms. Since pre-qualifying usually takes a few minutes and doesn’t affect your credit score, it’s a quick way to compare loans and determine which is the best for you.
Collect necessary documents. A formal 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 an 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 (scores from 300 to the high 500s), 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 responsible for payments 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. A secured loan is usually easier to qualify for and often has a lower rate compared to an unsecured loan. You can typically use a savings account or vehicle as collateral.
» MORE: See your bad-credit loan options
How to compare loan offers
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.
Fees: Some lenders charge an origination fee, which can range from 1% to 10% of the loan amount. This fee is often subtracted from the loan before you receive the funds, so make sure you’re borrowing enough to meet your needs.
Monthly payments: Review your budget to see how much you can afford to repay on a loan. A personal loan calculator can show you what rate and repayment term you’d need to get an ideal monthly payment.
Repayment terms: Many small loans are repaid over a year or more, but some can have shorter repayment terms. A longer repayment term may mean lower monthly payments but you’ll pay more in interest. Look for a term that keeps payments affordable but helps you clear the debt quickly.
Funding time: Personal loan approval and funding can take a day or up to a week, depending on the lender and how smoothly the application process goes. If you need the funds urgently, look for a lender that offers same- or next-day funding.
Know the signs of predatory lending
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 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
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
Ways to get $1,000 or less without a traditional loan
Some of the nation’s largest banks offer small-dollar loans to their existing customers. These loans typically have shorter repayment terms than traditional personal loans. Here are a few 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.
Some federal credit unions also offer payday alternative loans, or PALs. These are small loans up to $2,000 with rates capped at 28% and repayment terms from one to 12 months. You must be a credit union member to apply.
Before applying for a loan, consider cheaper alternatives to get the money you need. Even if you urgently need cash, it can be useful to compare financing methods to find the best deal. Consider these options:
Borrow against your next paycheck with a cash advance app. These apps 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.
Seek assistance from local nonprofits, charities and religious organizations for help with expenses like bills, gas, groceries, food or clothes. Some nonprofits, like Capital Good Fund, provide small-dollar loans with low rates to people in need.
Pick up a side gig to make extra money. For example, you could earn money delivering food or walking dogs.
Seek a loan from a family member or form a lending circle with people you trust.
Last updated on May 30, 2025
To recap our selections...
NerdWallet's Small Personal Loans: Best Lenders for a $1,000 Loan in 2025- LendingClub: Excellent for small loans starting at $1,000
- Upgrade: Excellent for small loans starting at $1,000
- Upstart: Excellent for small loans starting at $1,000
- Universal Credit: Excellent for small loans starting at $1,000
Frequently asked questions
Some lenders consider potential borrowers with a credit score of 580 or lower. To check your chances for approval, 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.
Few major banks offer personal loans below $1,000. However, these three 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 can be $250 or $500.
Some online personal loans start at $1,000. Credit union personal loans may have even lower starting amounts. Some large banks provide small loans to existing customers.