Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top personal loan providers
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Providers RatedOur team researched more than two dozen of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo, and peer-to-peer lenders like Upstart.
660
Data Points AnalyzedTo create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms.
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Loan Features TrackedOur team regularly collects data on each company’s loan offerings and terms, such as minimum and maximum loan amounts, origination fees and discounts.
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Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
The Best Lenders for a $1,000 Personal Loan
The best lenders for $1,000 personal loans offer favorable terms and a smooth borrowing experience. Here are some of our top picks:
- PenFed: Our top pick for small loans
- Upstart: Best for bad credit
- Upgrade: Best discounts
- LendingClub: Best for fair credit
- PNC Bank: Best credit line option
PenFed Credit Union
Best for Small Loans
4.8
Our Rating
Affordability: 35/35
Loan Features: 24/35
Customer Experience: 17/20
Company Reputation: 10/10
Interest Rate (APR)7.99% to 17.99%Term Options12 months to 60 monthsLoan Size Offered$600 to $50k
PenFed Overview
PenFed stands out as a top choice for small loans. With a minimum loan amount of $600, PenFed offers one of the lowest loan amounts in the industry, making it ideal for people who need quick cash for minor expenses. They also offer loan terms as short as one year, which is one of the shortest terms offered by lenders. Keep in mind when applying that PenFed is a credit union, so membership will be required before it will disburse funds. However, this is relatively easy to do, as anyone is eligible to apply.
Pros & Cons
Pros Fast funding, within one to two days after loan approval Multiple rate and term offers with preapproval and soft credit check Low lending amounts, starting at $600 Flexible loan terms, ranging from one to five years Cons Membership in the credit union is required Limited in-person branch locations No discounts for autopay
PenFed Eligibility Requirements
At one time, to become a member of PenFed Credit Union, you had to have some type of military affiliation. However, the lender has since lifted those requirements to allow anyone to apply and join. PenFed doesn’t disclose its minimum credit score requirements, but you can gauge eligibility with a simple online loan application that won’t affect your credit.
Upstart
Best for Bad Credit
4.4
Our Rating
Affordability: 28/35
Loan Features: 25/35
Customer Experience: 17/20
Company Reputation: 10/10
Upstart Overview
Upstart offers personal loans to people with more challenging credit situations, such as low credit scores or no credit history. The lender considers factors such as employment history and education when making their lending decisions. However, you’ll still need a higher credit score to get the most competitive interest rates.
Pros & Cons
Pros Accepts borrowers with low credit scores Ability to change your due date Next-day funding offered in most situations Cons High maximum annual percentage rate (APR) of 35.99% for lower credit borrowers Origination fees of up to 12%, among the highest in the industry Does not allow co-signers or spousal income
Upstart Eligibility Requirements
Upstart has fairly lenient credit requirements, often issuing loans to people with bad credit or no credit at all. It does, however, have a few other minimum eligibility requirements. For example, an applicant’s record can’t have any bankruptcies, liens or judgments in the past year to be considered for a loan. They also must have fewer than six inquiries on their credit report within the previous six months.
Upgrade
Best Discounts
4.3
Our Rating
Affordability: 22/35
Loan Features: 28/35
Customer Experience: 18/20
Company Reputation: 10/10
Interest Rate (APR)8.49% to 35.99%Term Options24 months to 84 monthsLoan Size Offered$1k to $50k
Upgrade Overview
Upgrade is a good choice for borrowers looking for personal loans with a variety of discounts and offers. For example, if you’re using your loan for debt consolidation, you could qualify for a substantial rate discount. Additionally, Upgrade offers a discount if you set up autopay or use your car as collateral for a loan. The lender also offers next-day funding once you’re approved and a competitive interest rate for borrowers with good credit.
Pros & Cons
Pros Several discounts available to borrowers Up to seven-year repayment terms Adjustable payment dates Allows joint applications Cons High APRs for lower credit borrowers, up to 35.99% Origination fees up to 9.99%
Upgrade Eligibility Requirements
Upgrade requires a minimum credit score of 620 to qualify for its personal loans. It also takes other factors into consideration, such as your payment history and the loan amount you’re applying for. If you feel you need to strengthen your loan application, Upgrade does allow joint applicants that may help you qualify for more money along with better rates.
LendingClub
3.7
Our Rating
Affordability: 22/35
Loan Features: 22/35
Customer Experience: 17/20
Company Reputation: 5/10
Interest Rate (APR)8.98% to 35.99%Term Options24 months to 60 monthsLoan Size Offered$1k to $40k
LendingClub Overview
LendingClub offers personal loans of up to $40,000 with the option of adding a co-borrower for better rates. One of the standout features of LendingClub is its robust mobile banking app, where you can submit all your documents and manage your account 24/7. One of the biggest downsides, however, is that all LendingClub loans come with origination fees.
Pros & Cons
Pros Offers access to a comprehensive mobile app for borrowers Loan amounts from $1,000 to $40,000 Option to allow LendingClub to pay your creditors directly Cons Origination fees on all loans of 3% to 8% High maximum APR of 35.99% Maximum repayment term of five years, shorter than many other lenders offer
LendingClub Eligibility Requirements
LendingClub does not solely use a credit score to determine eligibility for its borrowers. Instead, it takes a combination of other factors into consideration. For example, you must have a verifiable bank account, and the underwriters will look at the information from your application along with your credit history to make a determination. However, to get the best rates, you’ll need a good credit score, a low debt-to-income (DTI) ratio and a solid repayment history.
PNC Bank
Best Credit Line Option
4.1
Our Rating
Affordability: 28/35
Loan Features: 21/35
Customer Experience: 14/20
Company Reputation: 10/10
Interest Rate (APR)7.89% to 24%Term Options6 months to 60 monthsLoan Size Offered$1k to $35k
PNC Bank Overview
PNC Bank offers personal loans of $1,000 to $35,000. It has more than 2,600 locations nationwide, with the majority of its branches in the southern and eastern U.S., and offers a variety of loan terms and options. Unlike a lot of other lenders, PNC doesn’t charge an origination fee. Further, PNC Bank offers a discount to current customers with a checking account.
Pros & Cons
Pros No origination fees Competitive interest rates Autopay discount for PNC checking account holders Cons Five-year maximum repayment terms Approval process often takes several days, longer than some other lenders May have to complete the process in person at a branch to receive funds quickly
PNC Bank Eligibility Requirements
PNC Bank does not disclose a minimum credit score requirement for personal loan eligibility. Instead, it considers your score along with several other factors, including employment history and citizenship, to determine your creditworthiness.
>> Related: Learn more about the best personal loans
How To Get a $1,000 Personal Loan
Getting access to a $1,000 personal loan can be a lifeline in certain financial situations, but it’s important to weigh all the factors that go into it. In this section, we’ll go over how to apply for this type of loan, common requirements you’ll need to meet, a few alternatives and some other things to consider.
Applying for a $1,000 Personal Loan
Applying for a $1,000 personal loan should always start with thorough research. It’s important to choose a lender that aligns with your own personal needs. Once you’ve narrowed it down to two or three lenders, you can start the application process.
Most lenders allow you to prequalify using an online system without taking a hit to your credit score. This can give you some preliminary information on the rates and terms you’re likely to be offered so that you can compare offers between lenders and decide which to choose for a full application.
Choose your lender carefully from here because once you take out a loan, your payment activity over the coming months or years will impact your credit score.
Here is a rundown of the steps for applying for a $1,000 personal loan:
- Research lenders: Lending terms vary widely from lender to lender, so make sure to do your research.
- Review lending terms: Review lender websites to compare interest rates, fees and repayment terms.
- Prequalify: If the lender offers prequalification with a soft credit pull, use this option to get a better idea of where you stand.
- Gather your information: Most lenders will require documentation to prove your income, address and identity. These documents might include a driver’s license, bank statements, employer information, tax returns, utility bills, birth certificates and other verification items.
- Complete your application: If you prequalified, this process should just involve submitting the final application. The lender you choose will give you instructions on how to complete this step.
- Wait for approval: Most lenders reply quickly once your application has been submitted. Typical timelines are usually within one week or less.
- Accept your offer: If you decide to accept the offer and agree to the terms, you’ll need to formally accept it. This usually just requires a signature, but some lenders require you to do this in person.
- Receive your funds: Once you’ve accepted your offer, the loan funds can be disbursed fairly quickly into your chosen bank account. Many lenders even offer same-day funding.
- Manage your loan: Make timely payments according to your loan schedule to repay the $1,000 loan and any applicable fees and interest.
Requirements for a $1,000 Personal Loan
Whenever you apply for a loan, it will involve meeting certain eligibility requirements set by the lender, and a $1,000 personal loan is no different. For example, lenders typically have a minimum credit score they consider a key factor in determining someone’s eligibility for a loan. A good to excellent credit score of at least 670 is often required, but there are some lenders that weigh other factors more heavily — allowing you to qualify even with a lower credit score.
One of those factors is your income level. This can help a lender assess your ability to repay the loan. Minimum income requirements aren’t usually clearly disclosed, but lenders are looking for a reliable source of income that shows financial stability.
The other factor a lender will probably consider is your DTI ratio. This is the ratio of your monthly debt to your monthly income. The lower the DTI ratio, the more room you appear to have in your budget, which can positively affect your chances of getting a loan.
Favorable loan terms and interest rates rely heavily on a good combination of these factors, and the higher your credit score, the better your interest rate is likely to be.
>> Related: Learn more about $20,000 loans
Alternatives to a $1,000 Personal Loan
While a $1,000 personal loan can be a useful financial tool for some, it’s not always the best option. This is especially true if you only qualify for a loan with high interest rates. In these situations, there may be other options that better fit your needs.
Home Equity Line of Credit
If you own your own home, you could explore the option of taking out a home equity line of credit (HELOC) on the equity. This could allow you some flexibility and have certain benefits.
Pros and Cons of HELOCs
Pros
Typically lower interest rates: HELOCs typically have lower interest rates than personal loans or credit cards.
Flexible access to funds: You can access your money when you need it and only pay interest on what you spend.
Potential tax benefits: Interest paid on HELOCs can be tax-deductible when used for certain expenses, like home improvements.
Cons
Risks your home: A HELOC is secured by your home, meaning if you default on the loan, the bank may have the right to foreclose.
Variable interest rate: HELOCs usually come with variable interest rates, which means your monthly payments and interest could fluctuate.
Bad credit can limit your options: HELOCs can be a bit more flexible than other loan options, but getting a loan with bad credit can result in high interest rates.
Home Equity Loans
A home equity loan is often also called a second mortgage. It allows you to tap into the equity of your home by borrowing a lump sum of money using your home as collateral and can be a viable alternative to a personal loan in some situations. Check out our list of the best home equity lenders and the best home equity rates, if you’re interested.
Pros and Cons of Home Equity Loans
Pros
Potentially lower interest rates: Home equity loans generally have lower interest rates than personal loans.
Fixed payments: These types of loans usually come with fixed monthly payments, making budgeting and planning easier.
Possible tax benefits: Interest paid on home equity loans may be tax-deductible in some cases, like when used for home improvements.
Cons
Risks your home: Just like with a HELOC, a home equity loan is secured by your home, risking a loss if you fail to make your payments.
Sometimes expensive fees: You’ll usually have to pay closing costs on a home equity loan, making the upfront fees more expensive than a small personal loan.
Peer-to-Peer Lending
Peer-to-peer (P2P) lending is a newer way of borrowing money that basically cuts out the middleman. These lending platforms connect borrowers directly with investors willing to take on applicants who seem like a good risk. This could be a good place to start if you’re having trouble getting a loan anywhere else.
Pros and Cons of P2P Lending
Pros
More lenders to choose from: P2P loans may give you access to funding when you’re having trouble getting it from other lenders.
Often competitive rates: P2P loans often offer fairly competitive rates, even for people with lower credit scores. These terms are up to the individual lenders, so it’s possible to find someone to take a chance on you.
Easy application process: The online application process on P2P platforms is usually quick and straightforward.
Cons
Potentially higher fees: Most P2P platforms charge fees to connect lenders to borrowers, and some lenders charge origination fees. These add to the cost of your loan.
Selective lenders: Your loan request has to appeal to investors, and they can be as choosy as they wish.
Less protection: P2P loans are not always as protected as other lending institutions, which could result in fraudulent dealings. This is usually more of a risk for lenders than borrowers, but it’s still something to be aware of.
>> Related: Learn more about peer-to-peer lending
The Bottom Line
When applying for a $1,000 personal loan, it’s important to equip yourself with the best information available. First, make sure you thoroughly research and compare lenders across the market to get the most favorable terms, even if your credit is less than perfect. And if none of those initial lenders meet your needs, consider alternative funding sources, such as home equity loans or P2P lending.
Equally important is your ability to repay the loan without a strain on your finances or your credit. Identify the purpose of your loan and decide whether it’s the right choice for you.
A $1,000 personal loan can be a useful tool in certain situations, but you need a clear plan both for using and paying it off. Don’t hesitate to contact a financial adviser or expert if you need help understanding these products or to help you make an informed decision.
By carefully weighing your options, you can find the right solution for your unique situation.
Frequently Asked Questions About $1,000 Personal Loans
The amount of time it takes to pay off a $1,000 loan depends on the terms and conditions set by the lender. It typically varies from a few months to a couple of years, depending on the amount of your monthly payment.
The specific credit score you need to qualify for a $1,000 loan can vary quite a bit among lenders. Most lenders look for good to excellent credit scores (670 or higher), but there are some that are willing to work with people who have less-than-perfect credit. Just keep in mind that lower credit scores often result in higher interest rates.
Most lenders offer personal loans as small as $1,000, but there are some that offer smaller ones. PenFed, for example, offers loans as small as $600.
Depending on your credit situation, you might have a few options for getting $1,000 quickly. If you’re unable to borrow it from a family member or get it from your savings, you might start with applying to some online lenders. Many personal loan lenders offer quick and easy online applications that give you instant decisions and fast funding — some as soon as one business day. Other options include requesting a cash advance on your paycheck or taking out a payday loan.
Methodology: Our System for Ranking the Best $1,000 Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the US and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back
- Loan features (35%): The breadth of loan terms and features available to prospective customers
- Customer experience (20%): Ease of application, prequalification and customer service interactions
- Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
Cheri ReadWriter
Cheri Read is a former accountant turned professional personal finance writer. As someone who struggled as a single mom for many years, she’s passionate about helping others tame their finances and enjoy their lives. Her work has been featured in a variety of publications over the last decade, including Money Saving Mom and She Owns It. Cheri lives in West Texas and spends most of her free time reading books dedicated to financial freedom or checking out the latest new side hustle.
Elijah VorrasiContributor
Elijah Vorrasi is a copy editor with experience in a vast array of verticals, including personal finance, e-commerce, lifestyle, and hospitality. A one-time high school English teacher, Elijah entered the world of marketing as a fact-checker before managing the editorial department of a boutique agency. He has worked on campaigns for myriad high-profile clients over the years, such as Discover, DirecTV, Golf.com, Rocket Homes, and Office Depot. Elijah has a bachelor’s in English from the University of Central Florida and spends his free time hosting bar trivia and spending time with his wife and two children in sunny Coconut Creek, FL.
