What credit score do you need for a $5000 personal loan?
Requirements for a $5,000 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.
Payoff period | APR | Monthly payment |
---|---|---|
1 year | 15% | $451 |
2 years | 15% | $242 |
3 years | 15% | $173 |
4 years | 15% | $139 |
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.
Many give preference to borrowers with good or excellent credit scores (690 and above), but some lenders accept borrowers with bad credit (a score below 630). The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet.
- Upgrade. : Best for poor credit.
- Prosper. : Best for peer-to-peer lending.
- LendingPoint. : Best for long repayment terms.
- Upstart. : Best for thin credit.
- Avant. : Best for fair credit.
- Oportun. : Best for small loans.
- LendingClub. : Best for co-borrowers.
- SoFi. : Best for discounts.
A personal loan can affect your credit score in a number of ways—both good and bad. Taking out a personal loan isn't bad for your credit score in and of itself. However, it may affect your overall score for the short term and make it more difficult for you to obtain additional credit before that new loan is paid back.
Yes, you can get a $5,000 loan with bad credit if you have enough income to afford the monthly payments, but the loan is likely to have a high interest rate. Several lenders offer $5,000 personal loans for people with credit scores under 640, and a few may not even require a credit check at all.
Initial borrowing | APR | Total repaid |
---|---|---|
£5,000 | 10.9% | £5,841.36 |
£5,000 | 10.9% | £6,432.00 |
Company | Forbes Advisor Rating | Current APR range |
---|---|---|
LendingPoint | 4.0 | 7.99% to 35.99% |
Upgrade | 3.5 | 8.49% to 35.99% |
Universal Credit | 3.5 | 11.69% to 35.99% |
Discover | 3.5 | 7.99% to 24.99% |
What is the minimum credit score for LendingTree?
You can check your credit score for free with LendingTree Spring — without impacting your credit. While credit scores range from 300 to 850, the minimum credit score for a personal loan is typically 580. However, borrowers with scores of 640 or higher tend to get better loan rates and terms.
You will need a credit score of 580 or higher for a $3,000 personal loan. Most lenders that offer personal loans of $3,000 or more require a 580+ credit score for approval, along with enough income to afford the monthly payments.
The easiest types of loans to get approved for don't require a credit check and include payday loans, car title loans and pawnshop loans — but they're also highly predatory due to outrageously high interest rates and fees.
If you need the money now, there might be other ways to borrow, such as credit unions, employer salary advance schemes or Community Development Finance Institutions. But it's important to avoid being tempted to take out high-cost credit that you might be able to get but would struggle to afford, such as payday loans.
Fair Finance is a direct lender. This means there is no middle man involved, such as a credit broker, agent or financial advisor. If you want to take out a personal loan with us, you apply to us directly. We then make the lending decision without needing to involve anyone else.
It could impact your credit score.
It may seem counterintuitive, however, paying off a personal loan early could temporarily have a negative impact on your credit score.
When we say small personal loans, we're generally referring to loans in amounts of $3,000 or less. Some lenders have minimum loan requirements that exceed this threshold, but for this list we'll consider lenders that offer loans in amounts that start at a few hundred to a few thousand dollars.
Though they're a form of debt, personal loans can also serve as a tool to build credit. This is because they can contribute to your payment history and credit mix, as well as lower your credit utilization ratio. Collectively, these three factors account for 75 percent of your credit score.
Most lenders will require you to have good credit, minimal debts and consistent income in order to qualify for a loan. Credit score and history: Lenders review your credit score and credit history to assess how likely you are to repay the loan. To qualify for a lender's lowest rates, you need good to excellent credit.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
References
- https://www.comparethemarket.com/loans/5000-loan/
- https://www.usatoday.com/money/blueprint/personal-loans/easiest-personal-loans-to-get/
- https://www.nerdwallet.com/article/loans/personal-loans/credit-score-need-get-personal-loan
- https://www.creditkarma.com/personal-loans/i/small-personal-loans
- https://www.fairfinance.org.uk/direct-lender-loans/
- https://www.forbes.com/advisor/personal-loans/best-personal-loans/
- https://wallethub.com/answers/pl/can-you-get-a-5000-loan-with-bad-credit-1000098-2140839700/
- https://www.cnbc.com/select/easiest-personal-loans/
- https://www.lendingclub.com/resource-center/personal-loan/the-pros-and-cons-of-paying-off-a-personal-loan-early
- https://wallethub.com/personal-loan-calculator
- https://www.investopedia.com/best-uses-5000-personal-loan-7972835
- https://www.investopedia.com/ask/answers/111615/are-personal-loans-bad-your-credit-score.asp
- https://www.moneyhelper.org.uk/en/everyday-money/credit/what-to-do-if-you-have-been-refused-a-loan-or-credit-card
- https://www.lendingtree.com/personal/personal-loan-are-you-a-good-candidate/
- https://www.cnbc.com/select/personal-loan-lenders-credit-score-below-670/
- https://www.bankrate.com/loans/personal-loans/how-to-get-a-5000-personal-loan/
- https://wallethub.com/answers/pl/how-much-can-i-borrow-with-a-580-credit-score-1000508-2140806875/
- https://wallethub.com/answers/pl/what-credit-score-do-i-needed-for-a-3000-loan-1000461-2140767345/
- https://www.bankrate.com/loans/personal-loans/improve-credit-score-with-personal-loan/