You need a credit score of 580 or higher to qualify for a $5,000 personal loan in most cases. Other common requirements for a $5,000 loan include being at least 18 years old, having enough income to afford the monthly payments, and owning a valid bank account. If you don't have a credit score of at least 580 but you meet the other requirements, you could consider applying for a $5,000 personal loan with a co-signer.
Credit Score Required by Lenders That Offer $5,000 Personal Loans
| Lender | Loan Range | Credit Score Required |
| LendingClub | $1,000 - $40,000 | 600 |
| Payoff | $5,000 - $40,000 | 640 |
| Upstart | $1,000 - $50,000 | 300 |
| PenFed | $500 - $50,000 | 580 |
| Prosper | $2,000 - $50,000 | 640 |
| Upgrade | $1,000 - $50,000 | 580 |
| Universal Credit | $1,000 - $50,000 | 580 |
Some lenders will consider people with bad credit for a $5,000 personal loan, but it may be difficult to get approved for an amount above the lender's minimum unless you have a lot of income. Your chances of approval do get better the higher your credit score is above the minimum requirement, though.
The best way to see your odds of approval and what rates may be available to you is to add your desired loan amount to WalletHub's free pre-qualification tool. This tool won't hurt your credit score.
This answer was first published on 10/15/21 and it was last updated on 03/12/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Requirements for a $5,000 Personal Loan
Is it hard to get a $5000 personal loan? ›
You will almost certainly have no problems qualifying for a $5,000 personal loan if you have a strong income and good credit. However, you may struggle to get approved if your income is inconsistent, you have a low credit score, or you have a considerable amount of debt already.
How much is the monthly payment on a $5000 personal loan? ›
What is the monthly payment on a $5,000 personal loan?
| Payoff period | APR | Monthly payment |
|---|
| 1 year | 15% | $451 |
| 2 years | 15% | $242 |
| 3 years | 15% | $173 |
| 4 years | 15% | $139 |
3 more rowsTo qualify for a personal loan, borrowers generally need a minimum credit score of 610 to 640. However, your chances of getting a loan with a low interest rate are much higher if you have a “good” or “excellent” credit score of 670 and above.
How much can I borrow with a 580 credit score? ›
You can borrow anywhere from a few thousand dollars to $100,000+ with a 580 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
Who is the easiest to get a personal loan from? ›
Easiest-to-get personal loans compared 2024
| Title | APR | Min. credit score |
|---|
| BadCreditLoans.com | 5.99% to 35.99% | Undisclosed |
| Upstart | 5.2% to 35.99% | 300 |
| Avant | 9.95% to 35.99% | 580 |
| LendingClub | 8.98% to 35.99% | 600 |
6 more rowsMay 7, 2024
A personal loan will cause a slight hit to your credit score in the short term, but making on-time payments will bring it back up and can help improve your credit in the long run. A personal loan calculator can be a big help when it comes to determining the loan repayment term that's right for you.
How long does it take to get approved for a $5000 loan? ›
Each lender has its own timeline for approving your loan and providing the funds, and how you choose to receive the money can further alter the timeline. However, some lenders provide same-day approval and can send your funds as soon as the same day or next business day.
What credit score do you need for a 5000 dollar personal loan? ›
Requirements for a $5,000 Personal Loan
Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.
How much income do I need for a 20k loan? ›
Some lenders state they require stable, consistent income, while others list a minimum income requirement. For example, Discover requires a household income of at least $25,000. Finally, personal loan lenders consider your DTI ratio or your ratio of debt to gross income.
For other types of credit, such as personal loans, student loans and retail credit, you'll likely want to know your FICO® Score 8, which is the score most widely used by lenders.
What is the best place to get a personal loan? ›
Summary: Best Personal Loans Of May 2024
| Company | Forbes Advisor Rating | Loan amounts |
|---|
| SoFi® | 5.0 | $5,000 to $100,000 |
| Upgrade | 4.8 | $1,000 to $50,000 |
| LightStream | 4.6 | $5,000 to $100,000 |
| PenFed | 4.1 | $600 to $50,000 |
This is a valid concern, but you shouldn't let it stop you from applying altogether. Having a bad credit score can indeed reduce your chances of getting a personal loan. However, it's not impossible. Several lenders will consider applications with less-than-perfect credit scores.
How long does it take to go from 580 to 700 credit score? ›
For instance, going from a poor credit score of around 500 to a fair credit score (in the 580-669 range) takes around 12 to 18 months of responsible credit use. Once you've made it to the good credit zone (670-739), don't expect your credit to continue rising as steadily.
How much would a $5000 loan cost per month? ›
Based on the OneMain personal loan calculator, a $5,000 loan with a 25% APR and a 60-month term length would be $147 per month. The loan terms you receive will depend on your credit profile, including credit history, income, debts and if you secure it with collateral like a car or truck.
How much house can I afford if I make $36,000 a year? ›
On a salary of $36,000 per year, you can afford a house priced around $100,000-$110,000 with a monthly payment of just over $1,000. This assumes you have no other debts you're paying off, but also that you haven't been able to save much for a down payment.
What credit score do I need for a $5000 personal loan? ›
Requirements for a $5,000 Personal Loan
Requirements for a $5,000 loan vary by lender. But in general, you should have at least Fair credit, which is a score of 580 or above. Lenders may also look at other factors, such as your income and your debt-to-income ratio (DTI), during the application process.
How long does it take to get approved for a 5000 dollar loan? ›
Fortunately, getting approved for one and receiving the funds is typically a quick process. You could get money the same day you apply for a personal loan or within two five business days — depending on the lender and how long it takes to approve your application.
What is the most common personal loan amount? ›
Nearly 23 million Americans have unsecured personal loans, with an average balance of about $11,500. Today, the average interest rate on a personal loan is 11.48%, up from 9.38% in 2021. The average personal loan balance is highest among baby boomers ($21,644) and lowest among Generation Z ($7,684).
Is it hard to get a small personal loan from bank? ›
Personal loans generally aren't hard to get and are available from credit unions, banks, and online lenders. There are various types of personal loans to consider, depending on how much money you need to borrow.
