Small Personal Loans: Best Lenders for a $1,000 Loan or Less in 2025
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A $1,000 loan or a similar small 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 |
|---|---|---|---|---|---|
4.0/5 Best for small loans starting at $250 | 8.99-18.00% | $250-$50,000 | None | See my rateson NerdWallet's secure website | |
4.5/5 Best for small loans starting at $500 | 8.14-18.00% | $500-$50,000 | 660 | See my rateson NerdWallet's secure website | |
4.5/5 Best for small loans starting at $1,000 | 7.90-35.99% | $1,000-$40,000 | 600 | See my rateson NerdWallet's secure website | |
5.0/5 Best for small loans starting at $1,000 | 7.99-35.99% | $1,000-$50,000 | 580 | See my rateson NerdWallet's secure website | |
5.0/5 Best for small loans starting at $1,000 | 6.70-35.99% | $1,000-$50,000 | None | See my rateson NerdWallet's secure website | |
4.0/5 Best for small loans starting at $1,000 | 11.69-35.99% | $1,000-$50,000 | 580 | See my rateson NerdWallet's secure website | |
4.0/5 Best for small loans starting at $1,000 | 7.99-35.99% | $1,000-$36,500 | 640 | See my rateson NerdWallet's secure website |
Our pick for
small loans starting at $250
Navy Federal Credit Union Personal Loan
8.99-18.00%
$250-$50,000
None
View details Close details
- Wide range of loan amounts.
- Fast funding.
- No origination fee.
- 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 change your payment date.
- Must be a Navy Federal Credit Union member to apply.
- No minimum credit score requirement.
- Must provide personal information and contact details.
- Must provide information on income and employment.
- Origination fee: None.
- Returned payment fee: $29.
- Late fee: $29.
- Federal Express fee: $5.65.
- Certified Mail fee: $5.83.
Our pick for
small loans starting at $500
First Tech Credit Union Personal Loan
8.14-18.00%
$500-$50,000
660
View details Close details
- Co-sign and joint loan options.
- Wide range of loan amounts.
- Wide variety of repayment term options.
- Fast funding.
- Pre-qualification results are limited.
- No direct payment to creditors with debt consolidation loans.
- No rate discount.
- Minimum credit score: 660.
- Maximum debt-to-income ratio: 50%.
- Must be a member of First Tech Federal Credit Union.
- Must provide a Social Security number and copy of your driver's license or other state-issued ID.
- Late fee: $29
Our pick for
small loans starting at $1,000
LendingClub
7.90-35.99%
$1,000-$40,000
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.
- 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.
- Minimum credit score: 600; average borrower score is above 700.
- Minimum income: None; lender requires proof of income. Borrower average is $100,000 per year.
- Maximum DTI: 40%.
- Minimum credit history: 36 months and two accounts.
- Origination fee: 0%-8%
- Late fee: 5% of payment or $15 after 15-day grace period.
- Insufficient funds: $15.
Upgrade
7.99-35.99%
$1,000-$50,000
580
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.
- 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.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: One account.
- Maximum debt-to-income ratio: 75%, including mortgage payments.
- Minimum length of credit history: Two years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security, disability benefits and other sources.
- Origination fee: 1.85% to 9.99%.
- Late Fee: $10.
- Failed payment fee: $10.
Upstart
6.70-35.99%
$1,000-$50,000
None
View details Close details
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 with bad credit or thin credit histories.
- Has a low income requirement.
- Fast approval and funding.
- Allows secured loans.
- Option to change your payment date.
- Origination fee.
- No rate discounts.
- No joint or co-signed loans.
- No direct payment to creditors on debt-consolidation loans.
- Must be a U.S. citizen or permanent resident living in the U.S.
- Must be at least 18 years old in most states.
- Must have a valid email address and Social Security number.
- Must have a full- or part-time job, a full-time job offer starting within six months or another source of regular income.
- Must have a personal bank account at a U.S. financial institution with a routing number.
- No bankruptcies in the last 12 months.
- No current delinquent accounts on your credit reports.
- Fewer than six hard inquiries on your credit report in the last six months, excluding student, auto and mortgage loans.
- Minimum credit score: None.
- Minimum annual income: $12,000.
- 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
580
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.
- 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.
- Minimum credit score: 580.
- Minimum number of accounts on credit history: 1 account.
- Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
- Minimum length of credit history: 2 years.
- Minimum income requirement: None. Lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Origination fee: 5.25% to 9.99%.
- Late fee: Up to $10.
- Non-sufficient funds fee: $10.
LendingPoint
7.99-35.99%
$1,000-$36,500
640
View details Close details
- Fast funding.
- Option to change your payment date.
- Small loan amounts.
- Well-rated mobile app with free credit score access.
- Ability to refinance.
- Origination fee.
- Reports payments to only two of the three major credit bureaus.
- No joint, co-signed or secured loan options.
- No large loan amounts.
- Minimum credit score: 640. LendingPoint uses FICO version 9 and VantageScore version 3.0.
- Minimum credit history: 2 years.
- Maximum debt-to-income ratio: 45%, not including mortgage payments.
- Minimum annual income: $35,000. This lender accepts income from employment, alimony, retirement, child support, Social Security and disability benefits, but not a partner’s income.
- Must be at least 18 years old in most states.
- Must have a Social Security number, a government-issued photo ID and a personal bank account.
- Origination fee: Up to 10%.
- Late fee: 5% of the payment amount or $30.
What to know about getting a small personal loan
Most lenders have minimum loan amounts for personal loans, with many being $2,000 or more. If you need to borrow less, consider a $1,000 loan — or one that’s even smaller — from a reputable lender. Borrowing more than you need will cost you extra interest and possibly a higher origination fee.
Several credit unions and some online lenders let you borrow $1,000 or less. You may even find your local bank offers small-dollar loans.
Approval for personal loans is based on a lender’s evaluation of your credit, income and existing debt. Borrowers with high credit scores and income and low debt typically receive loans with the lowest annual percentage rate.
» MORE: See your bad-credit loan options
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 in the high 700s or higher). | 11.54%. | $33.00. |
Good (scores from the mid-600s to mid-700s). | 14.36%. | $34.35. |
Fair (scores in the mid-500s to low 600s). | 17.85%. | $36.08. |
Bad (scores from 300 to the high 500s). | 20.97%. | $37.66. |
Source: Average rates are based on aggregate, anonymized offer data from users who pre-qualified through NerdWallet from Feb. 1, 2025, through Feb. 28, 2025. 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 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 APR 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.
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 quick loans.
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 its 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 February 6, 2025
Methodology
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 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.
To recap our selections...
NerdWallet's Small Personal Loans: Best Lenders for a $1,000 Loan or Less in 2025- Navy Federal Credit Union Personal Loan: Best for small loans starting at $250
- 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
- LendingPoint: Best 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.