How to Get a $10,000 Personal Loan


You can find a $10,000 personal loan from a traditional bank, credit union, or online lender. Depending on where you apply, it is possible to receive a quick decision and be funded in one to two business days. Some lenders also offer same-day financing for borrowers who need cash fast.

Yet, there are other factors to keep in mind before applying. Consider the reason(s) you are applying for a personal loan, how you plan to use it, and whether it is better to borrow a lower amount. It’s equally important to understand the eligibility criteria and shop around to get an idea of ​​borrowing costs and ensure you’re getting the best deal.

How to determine if you need a $10,000 loan

The first question you should ask yourself is why you need a $10,000 loan. Before you answer, think about how you plan to use the funds if you haven’t already and write down the cost of each expense. The resulting total will give you an idea of ​​how much you need.

If it’s just under $10,000, taking out a loan for that amount might be ideal, especially if the costs are higher than expected. However, a figure well below $10,000 indicates that you may need to reduce the amount you are requesting.

Weigh the risks and benefits

Next, decide if the benefits you will receive will outweigh the cost of borrowing. It’s a personal decision, but using the funds to consolidate debt, cover a medical emergency, pay for your wedding or improve your home to increase its value are all more compelling reasons than funding a quiet trip with friends or doing shopping.

Watch your spending

When deciding if you need a $10,000 loan, also consider your spending habits. If you’re not looking to cover a short-term need and could save money by being more disciplined or cutting back, it might be better to take out a personal loan. Or, if money is already tight, a loan repayment would stretch your budget too much, and you risk devastating your finances and your credit rating by borrowing more than you can comfortably afford to repay on time.

Conditions to benefit from a personal loan

Lenders focus on two key factors when evaluating personal loan applicants – their debt-to-income ratio (DTI) and their creditworthiness. Not only is it important that the borrower earns enough to comfortably pay the monthly loan payments, but can they prove it? This is where the DTI ratio and credit rating come in.

The DTI ratio, or the percentage of gross monthly income used for minimum monthly debt payments, sheds light on a borrower’s current indebtedness relative to their income. The credit score shows how they have handled credit in the past. Ideally, you want an acceptable DTI and a good or excellent credit score to qualify for a personal loan on competitive terms.

However, a lower credit score is not necessarily a deciding factor. However, you can expect the cost of borrowing to be significantly higher because your chances of defaulting on the loan are higher from the lender’s perspective.

The average personal loan interest rate was between 10.3% and 12.5% ​​for borrowers with excellent credit as of July 1, 2022. These figures are significantly higher for borrowers with poor credit scores, with average interest rates ranging from 28.5% to 32%.

But if you can find a relative or friend with excellent credit and a verifiable source of income to co-sign the loan with you, it’s possible to get a lower interest rate. Keep in mind that this person will share equal responsibility for the loan, which means they will be responsible for the loan if you are late on payments.

Documents you need to apply for a personal loan

When you’re ready to apply, gather the following to speed up the application process:

  • Identity proof: two pieces of identification, including your driver’s license, passport, state-issued ID, birth certificate, or citizenship certificate
  • Proof of address: two of the following items from this list – a rental agreement or mortgage statement, a property tax receipt, proof of insurance (i.e. statement of automobile, home or tenant), utility bill, bank statement, or voter registration card
  • Proof of income: recent payslips, W-2, 1099, tax return or bank statements
  • Contact details of your employer: name and contact information of your immediate supervisor

Personal lenders who offer $10,000 loans

A quick search online will bring up several banks, credit unions, and online lenders that offer $10,000 personal loans. Below are some of the best options that feature a streamlined application process, fast funding times, and competitive rates.

Lender APR range Loan amount range Minimum credit score requirement
LightStream 3.99% – 19.99% (with automatic payment) $5,000 – $100,000 660
best egg 5.99% – 35.99% $2,000 – $50,000 640
happy money 5.99% – 24.99% $5,000 – $40,000 600
PenFed 5.49% – 10.24% $600 – $50,000 Unspecified


LightStream is one of the best online lenders with some of the lowest rates in the industry and the fastest funding times. There are no loan origination fees and you can choose from an assortment of loan amounts and loan terms to best suit your needs, however you intend to use the funds. . Plus, you’ll get an even better finance deal if you sign up for autopay.

Some loans are funded the same day, or you can extend the funding time to align with when you plan to use the loan proceeds.

best egg

Best Egg’s personal loans are available to consumers with credit scores as low as 640. Quick approvals and next day financing are also available. But what really sets this lender apart from many others is their willingness to make direct payments to lenders and creditors on your behalf to facilitate the debt consolidation process.

happy money

Happy Money is a financial wellness company that prides itself on providing an exceptional customer experience. Beyond its flexible eligibility criteria and low starting interest rates, borrowers also have access to a suite of educational resources, tools, and assessments to improve their financial health.

This lender should only be considered if you are looking to consolidate high interest debt, as this is what loan products are intended for.


PenFed Credit Union is a top choice for personal loans if you want the opportunity to do business with a credit union that is committed to helping you improve your financial health. They offer customer service 7 days a week and you are free to visit a branch and receive assistance in person if you live in an area with a banking centre. You will need to apply for membership before inquiring about a personal loan.

Costs of a $10,000 long-term personal loan

Borrowing costs depend on the interest rate you receive and the term of the loan. If you choose a shorter loan term, you will pay less interest, assuming the lender does not impose prepayment penalties. The downside is that the monthly loan payments could stretch your budget too much.

You can also opt for an extended loan term to avoid financial hardship later. But remember that you could end up with a higher interest rate.

Here is an example of the impact of interest rates and loan terms on borrowing costs for a $10,000 personal loan:

  • Personal loan of $10,000 with a term of 3 years and an interest rate of 11%: You will pay $327 per month and $1,785.94 in interest, for a total of $11,785.94, over the life of the loan.
  • Personal loan of $10,000 with a term of 5 years and an interest rate of 13%: Your monthly payment will increase to $228, but you will pay a total of $13,651.84 over five years.

At the end of the line

Whether you want to cover a financial emergency, consolidate debt, renovate part of your home, or cover another expense, a $10,000 personal loan could be a viable option. But you should research lenders and understand the cost of borrowing before applying.

In some cases, the costs of borrowing could outweigh the benefits. You might be better off saving money or focusing on other goals.


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