I need a loan of $10,000 urgently - can I get one?
Qualified applicants can get a $10,000 personal loan quickly. Loans are available from banks, credit unions, and online lenders. Their specific requirements for applicants, however, as well as loan terms and interest rates, vary considerably.
In addition, some lenders and banks have a significantly faster process than others. When you need a loan of $10,000 urgently, it is important to understand all of your options.
Loan proceeds are used for a variety of purposes, including:
- Debt consolidation
- Home improvements
- Medical bills
- Emergency expenses
Five steps to get a $10,000 personal loan
In many cases, you can apply for a personal loan online and receive your funds via direct deposit relatively quickly. While the steps to get a $10,000 personal loan vary slightly from lender to lender, a few apply in most cases:
1. Check your credit score
Personal loan lenders have strict credit score requirements in many instances. By checking your credit score as a first step, you can quickly narrow down your list of possible lenders.
The three credit bureaus (TransUnion, Equifax and Experian) allow you to access your credit scores and report at no cost. Not all creditors report your account history to all bureaus. Because of this, you likely will have three different credit scores.
2. Calculate your budget
Personal loan repayment periods generally range up to five years or more. Your new loan payment will be a regular expense in your budget for quite some time, so it must be affordable. Use a loan payment calculator before applying to estimate what your payment will be for different interest rates and loan periods. Plug the estimates into your monthly budget to determine affordability.
Be aware that your actual figure will likely vary from the estimated payment. Because of this, you also need to update your budget after you have been approved for a personal loan and know the firm payment.
3. Prequalify with multiple lenders
When you apply for credit, a hard inquiry is posted on your credit report. This can lower your credit scores slightly for a short period of time. Many lenders will not quote you a specific rate or prequalify you without checking your credit.
However, lenders often do a soft credit pull when you get prequalified and a hard pull when you formally apply for the loan. A soft credit pull does not affect your credit. As a result, you can prequalify with multiple lenders without worrying about the impact to your credit score.
4. Compare lenders
With significant variations in loan terms and interest rates, comparing options from several lenders is important. While you need the monthly payment to be manageable, other factors should be considered.
What else should you pay attention to when comparing personal loan quotes? Always consider the following:
- Loan term
- Interest rate
- Total interest charges
- Loan fees
- Late payment terms and fees
If you need a loan of $10,000 urgently, you will appreciate a fast application process. Many lenders allow you to complete it online. After completing the application, you will likely be required to submit supporting documentation. While some lenders require you to upload the documents, others may provide several submission options.
While the specific application documents required for a personal loan vary by lender, some of the common ones include:
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Proof of income: Pay stubs, a verification of employment or a profit and loss statement for self-employed individuals.
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Bank statements: Checking, savings and investment accounts.
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Explanations of derogatory credit history: For late payments, charge-offs, bankruptcies and other credit marks.
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Proof of identity and citizenship: Driver’s license or state ID and Social Security card.
How to get a $10,000 loan with bad credit
The best interest rates and other terms for a $10,000 personal loan are typically available to applicants with an excellent credit rating. However, many lenders extend loans to applications with good, fair and even poor credit.
Many lenders have a tiered interest rate chart. The interest rates get progressively higher for lower credit score tiers, and the difference can be significant. For example, some lenders offer an interest rate under 10% to well-qualified applicants while bad credit borrowers could be quoted up to a 35.99% interest rate.
In addition, the loan amount available to a bad credit borrower may be lower. As previously discussed, it is important to get preapproved for a $10,000 loan if you have bad credit before formally applying.
Some of the ways to potentially qualify for a better personal loan interest rate include:
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Adding a co-borrower or cosigner: A co-borrower or cosigner with a better credit rating could increase your chance of loan approval and obtaining a lower interest rate.
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Documenting higher income: Ensure that you include all income sources on your application and choose a co-borrower or cosigner with higher income if possible.
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Choosing a lower loan amount: Carefully analyze your financial needs and determine if a lower loan amount would suffice.
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Considering a secured loan: The collateral used for a secured loan can lower the lender’s risk of loss when extending a loan to an applicant with bad credit.
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Improving your debt-to-income ratio: If you have time and money available to lower your monthly debt payments before applying, your approval odds may increase.
$10,000 loans with guaranteed approval
Few reputable lenders offer guaranteed approval for a $10,000 personal loan. Instead, most lenders base their approval as well as your interest rate and loan term on your credentials as an applicant. In addition to reviewing your credit score and history, lenders pay attention to your debt-to-income ratio, income and assets.
While you are not guaranteed approval, you can get prequalified and preapproved. As previously discussed, this process involves agreeing to a soft credit pull. You also may need to provide information about your income and other relevant factors.
Once you are preapproved, you typically must provide supporting documentation for the information provided in the application. If the documentation is sufficient, your chances of loan approval are often high.
Where can I get a $10,000 personal loan?
Numerous lenders offer $10,000 personal loans, but the terms, rates, requirements and fees vary considerably among them. Understanding their key differences will help you focus on the type of lender that is best-suited for your needs.
Banks
Banks are the traditional source for personal loans, and many people turn to the bank that has their checking and savings accounts for their personal loan needs. However, the lending requirements are often stricter than those of an online lender. Often, applicants can choose to apply and submit required documents at the local branch or online.
Credit unions
Credit unions typically have equally stringent qualification requirements for personal loans as banks have. Depending on the credit union that you use, you may get to choose between applying online or in person. The benefit of a credit union is somewhat lower interest rates for personal loans.
Online lenders
Online lenders usually have a simple prequalification process that takes a few minutes to complete. The requirements may be less stringent compared to credit unions and banks. The entire loan process with an online lender can be completed online.
How much will a $10,000 loan cost?
Each loan payment that you make will include principal and interest. Both a higher interest rate and a longer loan term can dramatically increase the total interest paid over the life of the loan. Your new loan payment should be affordable for your budget first and foremost, but you also need to consider the total cost of the loan.
Generally, choosing the shortest term possible that yields an affordable payment is the smart option. The chart below shows total interest charges on a $10,000 loan at different interest rates and loan terms:
| Rate |
24 months |
48 months |
72 months |
| 9.99% |
$1,073.67 |
$2,171.74 |
$3,334.97 |
| 14.99% |
$1,635.66 |
$3,356.33 |
$5,220.50 |
| 19.99% |
$2,213.82 |
$4,604.02 |
$7,241.86 |
| 24.99% |
$2,807.96 |
$5,912.74 |
$9,390.35 |
| 29.99% |
$3,417.84 |
$7,280.09 |
$11,655.96 |
| 34.99% |
$4,043.20 |
$8,703.31 |
$14,027.87 |
Alternatives to a $10,000 personal loan
A personal loan is only one of several options for obtaining the $10,000 you need. Each of the alternatives offers different terms, risks and repayment plans. When deciding how to borrow much-needed cash, you need to know what all the alternatives entail.
Credit cards
If you have $10,000 in available credit on your credit cards, this may be your fastest and easiest option. You might be able to cover your expenses by charging them directly to your account, or you could withdraw cash or even send a wire. When withdrawing cash or wiring funds from your credit card, be aware that fees normally apply.
Credit cards have a revolving term while personal loans come with a fixed term and fixed installments. With a credit card, your payment amount will gradually decrease as you pay down the balance, but it could take you a decade or longer to pay the credit card off if you only make the minimum payment. With an installment loan, the entire balance will be paid in full at the end of the loan term.
Peer-to-peer lending
With peer-to-peer lending, you create a loan request and other individuals contribute money to fund your loan. In exchange for lending you money, the individual lenders receive an interest rate that is higher than what they would earn from a high-yield savings account or a comparable type of investment.
To request a peer-to-peer loan, you must choose which platform you want to use and create an account. You will provide financial and credit information, enabling potential lenders to make an informed decision. The specific interest rate may be negotiable, but these loans usually have a fixed term.
Home equity loans
If you own your home and have equity in it, a home equity loan is worth considering. A home equity loan uses the equity as collateral. This means that the lender can come after your home if you default. A home equity loan is a fixed-term loan that takes a second position behind your first mortgage.
However, because the loan is secured, lenders are often more willing to consider a lower credit score and may offer a lower rate. The loan term may range from 60 months to 30 years, enabling you to easily set up a monthly payment that is affordable for your budget.
The application process for this type of loan can take weeks to complete. You may need to pay for an appraisal and provide a substantial amount of documentation.
