Best small personal loans of July 2022

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own.

Small personal loans can help cover an unexpected expense in no time. Here’s what you need to know about borrowing a small amount of money. (Shutterstock)

Sometimes life has unexpected expenses for you. If you need more money than you have to cover an unexpected expense or an emergency, a small personal loan can come in handy. You can use personal loans for a wide variety of expenses, and you can choose how much you need to borrow, even if it’s a small amount.

here’s how small personal loans work, 10 of the best small lenders to consider and how to ask for a small amount of money.

Credible has several lenders that offer small personal loans. It’s easy to view your prequalified personal loan ratesand it only takes a few minutes.

What is a small personal loan?

A small personal loan is a loan you take out for a small amount of money (often $2,000 or less) that you can use for a wide range of expenses. The amount you can borrow with a personal loan varies by lender and depends on your credit score and Income.

Just like a large personal loan, you’ll make payments in fixed installments, plus interest, over the life of your loan.

Small personal loans are less common than larger ones, and not all lenders offer loans for small amounts. But you can find them from some online lenders, credit unions, and community banks. It should be noted that personal loans for very small amounts can sometimes come with high fees.

Credible, it’s easy to compare personal loan rates from various lenders, all in one place. And it won’t affect your credit.

10 Best Small Personal Loans of July 2022

If you just need to borrow a little money, these 10 credible partner lenders offer small personal loans:

Before: the best for debt consolidation

  • Loan amounts: $2,000 to $35,000
  • Minimum credit rating: 550
  • Funding time: As of the next business day (if approved before 4:30 p.m. central time on a weekday)

Discover: the best for a quick approval

  • Loan amounts: $2,500 to $35,000
  • Minimum credit rating: 660
  • Funding time: From the working day following acceptance

LendingClub: Ideal for flexible loan amounts

  • Loan amounts: $1,000 to $40,000
  • Minimum credit rating: 600
  • Funding time: Usually takes about 2 days

LendingPoint: Ideal for home renovations

  • Loan amounts: $2,000 to $36,500
  • Minimum credit rating: 580
  • Funding time: From the next working day

OneMain Financial: Best for those with a low credit score

  • Loan amounts: $1,500 to $20,000
  • Minimum credit rating: None
  • Funding time: Same day, but usually requires a visit to a branch

PenFed Credit Union: the best with no fees

  • Loan amounts: $600 to $50,000
  • Minimum credit rating: 660
  • Funding time: 2-4 business days after verification

Prosper: Ideal for large quantities

  • Loan amounts: $2,000 to $40,000
  • Minimum credit rating: 640
  • Funding time: From 1 working day

Universal Credit: ideal for automatic payment discounts

  • Loan amounts: $1,000 to $50,000
  • Minimum credit score: 560
  • Funding time: Within 1 day once approved

Upgrade: Ideal for credit card refinancing

  • Loan amounts: $1,000 to $50,000
  • Minimum credit rating: 560
  • Funding time: Within one day after completing the necessary checks

Upstart: Best for a low credit score

  • Loan amounts: $1,000 to $50,000
  • Minimum credit rating: 580
  • Funding time: From 1 working day

Other Lenders to Consider

The following two lenders are not Credible partners, so you won’t be able to easily compare your rates with them on the Credible platform. But they may also be worth considering if you’re looking for a small personal loan.

Federal Naval Credit Union

  • Loan amounts: $250 to $50,000
  • Minimum credit rating: don’t divulge
  • Funding time: As soon as 24 hours after approval

NCP Bank

  • Loan amounts: $1,000 to $35,000
  • Minimum credit rating: don’t divulge
  • Funding time: Funding time may vary


Credible assessed the best small personal lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding term, loan terms and fees. Credible’s team of experts gathered information from each lender’s website, customer service, and via email support. Each data point was checked to ensure it was up to date.

How to apply for a small personal loan

If you decide to apply for a small personal loanhere are the steps you will typically follow:

  1. Shop around and compare lenders. Research a few different lenders to see which one offers the loan amount and terms you’re looking for. You can prequalify for different personal loans, which will not affect your credit. Although a prequalification is not an official offer, it will give you an idea of ​​the rates and terms a lender is likely to offer you when you officially apply.
  2. Review loan offers. Once you have prequalified with several lenders, review your loan offers and choose the one that suits you best. Review the loan amount, APR, repayment terms and fees of each lender.
  3. Apply. Once you know which lender you want to apply with, submit your application. You will need to provide personal information, such as your name, address, date of birth, social security number, employment status, and income. The lender will do a thorough credit check and review your credit after you apply, which may temporarily lower your score by a few points.
  4. Receive loan funds. If you are approved, read and sign your loan agreement which describes all the terms of your loan. The lender will disburse your loan funds, usually by direct deposit to your bank account.

If you’re ready to apply for a personal loan, visit Credible for quick and easy compare personal loan rates to find the one that suits you best.

How to qualify for a small personal loan with bad credit

You may still qualify for a loan with bad credit, but the interest rate you receive may be high, which may result in you paying more over the life of the loan. If you have time on your side, you can work for improve your credit score before applying for a personal loan.

Here are some things you can do to boost your credit and increase your chances of being approved for a small personal loan or lower interest rate in the future:

  • Make on-time payments to existing credit accounts.
  • Pay down your debts (like credit card balances), which will lower your credit utilization rate.
  • Check your credit report for any errors and dispute them with the appropriate credit bureau.