How to get a $10,000 personal loan

You can find a $10,000 personal loan through a traditional bank, credit union, or online lender. Depending on where you apply, it’s possible to get a quick decision and be funded within one to two business days. Some lenders also offer same-day financing to borrowers who need a quick buck.

However, there are other factors to consider before applying. Consider the reasons for seeking a personal loan, how you plan to use it, and whether you would be better off borrowing a smaller amount. It’s equally important to understand the eligibility criteria and shop around to get a feel for the cost of borrowing and make sure you’re getting the best deal.

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

The first question to 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 total you receive gives you an idea of ​​how much you will need.

If it’s a little under $10,000, borrowing that amount could be ideal, especially if the costs are higher than projected. However, a number well below $10,000 signals that you may need to lower the amount requested.

Weigh the risks and benefits

Next, decide whether the benefits you’re getting outweigh the cost of borrowing. It’s a personal choice, but using the funds to consolidate debt, cover a medical emergency, finance your wedding, or add value to your home are more compelling reasons than financing a leisurely trip with friends or a shopping spree.

Look at your expenses

When deciding whether you need a $10,000 loan, also evaluate your spending habits. If you don’t want to meet a short-term need and could save by being more disciplined or cutting back, passing on a personal loan might be best. Or, if money is already tight, a loan payment would break your budget too much, and you risk wrecking your finances and credit by borrowing more than you can afford to pay back on time.

Requirements for taking out a personal loan

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

The DTI ratio, or the percentage of gross monthly income used to make minimum monthly debt payments, provides an indication of the borrower’s current debt load relative to their earnings. Creditworthiness shows how they have handled credit in the past. Ideally, you want an acceptable DTI and good or excellent credit to qualify for a competitive personal loan.

However, a lower credit score isn’t necessarily a deal-breaker. However, you can expect the cost of borrowing to be significantly higher since your chances of defaulting on the loan payments are higher from the lender’s perspective.

The average interest rate on personal loans as of July 1, 2022 ranged from 10.3 percent to 12.5 percent for borrowers with excellent credit ratings. For borrowers with poor credit ratings, these numbers are significantly higher, with average interest rates ranging from 28.5 percent to 32 percent.

But if you can find a relative or friend with excellent credit and a verifiable source of income to sign the loan with you, it’s possible to get a lower interest rate. Remember that this person has equal responsibility for the loan, which means that if you default on payments, they are on the hook for the loan.

Documents you will need to apply for a personal loan

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

  • Proof of identity: two forms of identification, including a driver’s license, passport, government-issued ID card, birth certificate or deed, or citizenship
  • Proof of address: two of the following items from this list – a lease or mortgage statement, a property tax receipt, proof of insurance (such as a car, home, or tenant statement), a utility bill, a bank statement, or a voter registration card
  • Proof of Income: Recent payslips, W-2, 1099, income tax returns or bank statements
  • Contact details of your employer: Name and contact details of your line manager

Personal lenders offering $10,000 loans

A quick online search will reveal several banks, credit unions, and online lenders offering $10,000 in personal loans. Below are some top options that boast a streamlined application process, fast financing times, and competitive pricing.

lender APR range loan amount range minimum credit requirement
Luminous flux 3.99% – 19.99% (with automatic payment) $5,000 – $100,000 660
best egg 5.99% – 35.99% $2,000 – $50,000 640
lucky money 5.99% – 24.99% $5,000 – $40,000 600
PenFed 5.49% – 10.24% $600 – $50,000 indefinite

Luminous flux

LightStream is a top online lender with the lowest interest rates and fastest financing times in the industry. There are no lending fees, and you can choose from a range of loan amounts and terms that best suit your needs, no matter how you want to use the funds. Plus, you get an even better financing deal when you sign up for Autopay.

Some loans are funded on the same day, or you can shift the funding time to match when you want to use the loan proceeds.

best egg

Best Egg personal loans are available to consumers with a credit score as low as 640. Fast 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.

lucky money

Happy Money is a financial wellness company that prides itself on providing an exceptional customer experience. In addition to flexible eligibility criteria and low initial interest rates, borrowers also gain access to a range of educational resources, tools and assessments to improve their financial health.

This lender should only be considered if you want to consolidate high-interest debt as the lending products are designed for that.


PenFed Credit Union is the top choice for personal loans if you want the opportunity to do business with a credit union 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 get personal assistance if you live in an area with a banking center. You must apply for membership before inquiring about a personal loan.

Cost of a $10,000 personal loan over the long term

The cost of the loan depends on the interest rate received and the loan term. If you choose a shorter loan term, you pay less interest unless the lender charges a prepayment penalty. The downside is that the monthly loan payments could break your budget.

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

Here’s an example of how interest rates and loan terms affect the cost of borrowing on a $10,000 personal loan:

  • $10,000 personal loan with a 3 year term and an 11 percent interest rate: You pay $327 per month and $1,785.94 in interest, or a total of $11,785.94 over the life of the loan.
  • $10,000 personal loan with a 5-year term and an interest rate of 13 percent: Your monthly payment drops to $228, but you pay a total of $13,651.84 over five years.

bottom line

Whether you’re covering a financial emergency, consolidating your debt, renovating part of your home, or covering some other 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 cost of borrowing could outweigh the benefits. You might be better off saving or focusing on other goals instead.

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