Best Small Personal Loans In 2024

Shatakshi Sinha
best small personal loan

Small personal loans can serve as a useful tool for individuals seeking to bridge the gap between their current financial situation and their financial objectives. Whether you need to settle a debt, make a significant purchase, or deal with unforeseen expenses, a small personal loan can provide the necessary funds quickly and with ease.

In this blog post, we will provide an overview of small personal loans, including their definition, functioning, and the various types available. Furthermore, we will analyze the advantages and risks associated with taking out a small personal loan, as well as how to determine if a personal loan is suitable for your financial position.

By the end of this post, you will have a better understanding of how small personal loans can help you attain your financial objectives. Let us delve into the world of small personal loans!

Top 5 Small Personal Loans In 2023

Overall Best Installment Loans, Editor’s Pick

4.9

24-hour payment guaranteed

No

Credit Score Required

$200 - $5,000

Loan Amount

Best Installment Loans For Bad Credit

4.8

Easy lending process

600

Credit Score

$1,000 - $50,000

Loan Amount

Best Installment Loans Online

4.6

Simple Requirements

600

Credit Score

$1000-$35,000

Loan Amount

Most Popular Bad Credit Installment Loans A

4.6

Simple Requirements

600

Credit Score

$1000-$35,000

Loan Amount

Best Personal Installment Loans

4.7

Instant Approval

No

Credit Score Required

$100 -$10,000

Loan Amount

#1. MoneyMutual Best Overall Small Personal Loan, #1 Pick

MoneyMutual is an online lending platform that connects borrowers with lenders from across the country. It offers borrowers searching for short-term loans an easy way to interact with more than 60 lenders, and borrowers may get a maximum of $5,000 in their accounts in less than 24 hours after choosing an offer and providing the details required by MoneyMutual with bad credit too.

According to customer evaluations, the platform is efficient and easy to use. MoneyMutual is a legitimate company trusted by more than 2 million consumers. It exhibits its dedication to honest dealing by displaying the Online Lenders Alliance seal, which states that it adheres to responsible lending practices.

#2. Bad Credit Loans Trusted Small Personal Loan Online

The Bad Credit Loans site is designed to help consumers find the best personal loan options. The site lists companies specialising in personal loans to people with bad credit.

The list of companies includes banks, credit unions, and other lenders that offer a variety of loan products, including Payday loans, Instalment loans, Balance transfers, and Credit card consolidation. The site provides information about each lender’s rates and terms and contact information.

#3. Radcred Recommended Small Personal Loan

Radcred is a loan company that provides personal and business loans to individuals and companies. It offers a variety of loan products, including personal loans, business loans, debt consolidation loans, and no credit check loans.

 

Radcred aims to provide its customers with a seamless and hassle-free loan application process. The company’s online application process is simple and can be completed in just a few minutes. Customers can also check their loan status and manage their accounts online.

 

In addition to loans, Radcred offers credit monitoring services to help customers improve their credit scores. The company’s credit monitoring service provides customers with regular credit reports, credit score updates, and alerts.

#4. Personal LoansBest Small Personal Loan Lender

PersonalLoans is a company that provides personal loans to individuals in need of financial assistance. The company was founded in 2013 and has since become a popular option for those seeking loans online.

One of the critical features of PersonalLoans is its online application process, which allows borrowers to apply for a loan from the comfort of their homes. In addition, the application process is straightforward, and borrowers can receive their funds in as little as 24 hours after approval.

PersonalLoans is also known for its flexible eligibility requirements. They work with a network of lenders, which allows them to provide loans to individuals with a wide range of credit scores and financial backgrounds. 

However, it’s worth noting that borrowers with better credit scores are likely to receive lower interest rates and better loan terms.

#5. CashUSAPopular Small Personal Loan

CashUSA is an online loan broker that connects borrowers with lenders offering personal loans, installment loans, and peer-to-peer loans. The company provides a platform for its lenders and customers to come together to get the best deals.

The application process is fast, easy to understand, and can yield multiple loan offers in minutes. In addition, CashUSA uses 256-bit SSL encryption to protect customers’ financial information, which is the industry standard. 

Customers appreciate that they can apply and complete the loan process from their mobile phones on the CashUSA app.

While CashUSA is not an actual lender, it has a good reputation for introducing customers to multiple lenders who compete for their loans by offering the best APR rates.

What is a Small Loan?

A small loan is a type of personal loan typically for a relatively small amount. Small loans are usually unsecured, meaning they don’t require collateral like a car or house. Instead, the borrower’s creditworthiness and income are used to determine their eligibility for the loan.

Small loans can be used for various purposes, such as paying off credit card debt, making a large purchase, or covering unexpected expenses. The exact amount that qualifies as a small loan may vary depending on the lender, but generally, it ranges from a few hundred to a few thousand dollars.

Small loans typically have a shorter repayment period than larger ones, ranging from several months to a few years. Interest rates on small loans can vary widely depending on the lender and the borrower’s creditworthiness, but they tend to be higher than rates for larger loans.

Pros and Cons of Small Personal Loans

Pros of Small Personal Loans

 

  • Easy and quick approval process: Small personal loans are generally approved quickly, and the application process is often straightforward.
  • Convenient: Small personal loans can be used for various purposes, such as paying off bills, financing small projects, or consolidating debt.
  • No collateral required: Small personal loans are usually unsecured, meaning you don’t have to put up collateral like your car or home.
  • Improve Credit Score: Successfully repaying a small personal loan on time can help to improve your credit score.

Cons of Small Personal Loans

 

  • High-Interest Rates: Small personal loans usually have higher interest rates than larger loans.
  • Fees: Some lenders charge fees for processing, origination, or prepayment, which can add up and increase the overall cost of the loan.
  • Short Repayment Periods: Small personal loans often have shorter repayment periods, meaning you may have to make higher monthly payments to pay off the loan within the given time frame.
  • Risk of Debt: Taking out a small personal loan can put you at risk of falling into debt, especially if you have other outstanding debts and are struggling to keep up with payments.

Where to Get Small Personal Loans

Banks and credit unions are the most common places to get a small personal loan. You can apply for a loan through your bank or credit union if you have a good relationship with that institution or are looking for an alternative to payday loans or other forms of high-cost financing.

 

The problem with getting a personal loan from a bank is that the interest rates are often relatively high. If the interest rate on your loan is too high, it might make more sense for you to look for a different type of financing. Also, they may offer lower interest rates but typically require good credit scores and may take longer to process your application.

 

Online lenders provide small personal loans with a quick and easy application process. They may have higher interest rates but are more likely to approve borrowers with less-than-perfect credit. Online lenders typically offer loans of $1,000 or less (although some will offer more significant amounts) at competitive rates and with convenient repayment terms.

 

Online lending has been around for several years, but getting approved for an online loan without any credit history or collateral is still challenging. As a result, it’s usually only available to those who have already built up some form of credit history through traditional sources such as credit cards and installment loans (like auto loans).

  • These platforms are an excellent option for those needing small personal loans. These sites connect borrowers with lenders, who fund loans that range from $500 to $50,000.

    Peer-to-peer lending platforms can make it easier to get a small loan because they don’t require credit checks or collateral. They also offer competitive rates and fixed repayment periods, so you know exactly how much you’ll pay each month.

     

    Here’s what you need to know about peer-to-peer lending:

     

    • The best peer-to-peer loans have competitive interest rates ranging from 5% to 30%. The average rate is about 16%.
    • You can borrow up to $50,000 on most platforms. However, some allow you to request as much as $100,000.
    • You don’t need good credit scores or assets to qualify for a peer-to-peer loan — just proof of income and employment status.

Payday lenders offer small loans that can be used for many things, such as paying an unexpected bill or buying groceries. These high-interest, short-term loans must be paid back in a few weeks. Some payday lenders require a job to receive credit, while others do not.

 

You can find payday lenders online or through storefronts near where you live or work. Some lenders allow you to apply online and receive your funds within one hour if approved by a lender representative over the phone or through an ATM at their location. 

 

Some will even deliver cash directly to your door if you meet specific requirements (such as having an active checking account).

  • If you have a credit card, you can use it to get a cash advance or a small loan. However, these options can be expensive due to high-interest rates and fees. Therefore, comparing different lenders’ rates, terms, and fees is essential to find the best choice for your needs and budget.

     

    Credit card companies are not all the same. However, some have higher interest rates than others, so you will want to shop around before choosing one. The best way to do this is by comparing different credit cards online and choosing one that meets your needs, such as having no annual fee or high-interest rate.

     

    If you already have a credit card from one of these companies, you can get a small personal loan if your limits are high enough. They will want proof of income before approving any loan amount.

How To Compare Small Loans

Interest rates are a big part of the equation when looking for a small loan. You want to ensure your interest rate is competitive. Compare the interest rates offered by different lenders. A lower interest rate can save you money over the life of the loan.

Many lenders offer loans with fixed interest rates, but if you want to avoid surprises, go with a fixed-rate loan. The average interest rate on small personal loans is around 30%. Compare the APR on each loan before applying.

Check for any fees associated with the loan, such as origination, prepayment, or late fees. These fees can add up and increase the overall cost of the loan.

Fees and finance charges usually come into play if you’re taking out a loan or credit card with an APR (annual percentage rate) higher than 14%. They may also apply if you miss a payment or make an early payment on your loan or credit card. 

Fees are typically charged as a percentage of your balance and vary depending on what type of account they’re associated with (credit card, mortgage, etc.). Finance charges are usually expressed as money per $100 owed on the account at any given time.

You must also look at the repayment terms when comparing small personal loans. If you plan to repay the loan within the next few months or years, consider a longer repayment term with lower monthly payments. However, opt for a shorter term with higher monthly payments if you want to pay off your loan in a few weeks.

Look at each lender’s repayment terms, including the loan’s length and monthly payments. A longer loan term may mean lower monthly payments, but it will also increase the total cost of the loan.

You’ll need a good credit score to qualify for a small personal loan. A high score indicates that you’re responsible with money and pay your bills on time. It also shows that you have enough income to cover the amount of the loan plus interest payments.

The good news is that many lenders offer loans with low credit requirements, meaning that even those with poor or limited credit may still qualify for a small personal loan.

Some lenders have strict credit score requirements, while others may be more lenient. If you have a lower credit score, look for lenders specializing in loans for people with bad credit.

When comparing small loans, looking at customer reviews is essential. However, small loan reviews are often more subjective than larger ones, so it’s essential to look for patterns and trends rather than individual comments or complaints. Here are some things to remember when reading small loan reviews:

Reviews with only one or two stars are worth paying attention to. Negative reviews are often helpful because they provide detailed information about what went wrong and what you can do next to avoid similar problems. However, if you find many negative reviews, move on to another lender.

Positive reviews can be helpful, but they’re less valuable than negative ones since positive reviewers tend to be less detail-oriented than unhappy ones. Nevertheless, you should still read them carefully and look for any common themes among the positive comments. This can help you gauge whether the lender is doing something right or wrong.

There are some things that all lenders have in common. For example, lenders will require collateral for some types of loans, meaning assets such as your home or car may be used if you do not repay your loan on time. 

Your credit score is also essential when applying for small personal loans, so keeping yours in good standing is vital to get approved for one of these loans. In addition to getting the best deal possible on your small personal loan, choosing a lender who will allow you to pay off your debt without any penalties or interest charges is important. 

Some lenders restrict how often they will let you pay off a loan before penalties are assessed, while others charge hefty fees if you try to pay off your debt early.

How to Get A Small Loan

If you require extra cash to cover unexpected expenses or make a large purchase, a small personal loan might be just what you need. 

Here are some steps to take to get a small personal loan:

The first thing you need to do is determine how much money you need. If you need to know how much you need, it’s easier for a lender to give you a loan. Creating a budget is the best way to figure out how much money you need. 

This will help you determine your monthly expenses and how much extra income you receive. After creating your budget, subtract any extra monthly income until it equals the needed amount. Be realistic about your budget and ability to repay the loan on time.

Your credit score will play a significant role in determining whether or not you qualify for a loan and the interest rate you’ll be offered. Your credit score will determine the interest rate you receive on your loan and whether or not you qualify for one. If your credit is less than perfect, it may be best to wait until it improves before applying for a small personal loan. 

To check your credit score, visit the required sites and request free copies of all three credit bureaus’ reports once a year. This will give you an idea of where your credit stands and how much work needs to be done before applying for a small personal loan.

If you want to get the best deals on your small personal loans, there are some things that you need to do. One of which is to shop around for the best rates. Even though one lender offers a better rate, they will still be your best deal. 

You should look at all your options and ensure you have compared them before deciding who will offer your loan.

 

Find personal loan lenders and compare their interest rates, fees, and repayment terms. You can also use online loan comparison sites to get quotes from multiple lenders simultaneously.

Another step to applying for a small personal loan is to have the appropriate paperwork. If you’re unsure what documents you’ll need to provide, call your lender and ask. Depending on your credit history, you may need to provide multiple documents.

Lenders will require certain documents, such as proof of income, employment history, and bank statements. Make sure you have everything you need before applying.

Once you’ve found a lender and reviewed their terms, it’s time to apply for the loan. Most lenders will have an online application form you can complete and submit online. However, some lenders may require additional documentation, such as a recent pay stub or bank statement.

Once your application is submitted, the lender will review it and check your credit. If the application is approved, you’ll be notified within a few days, and the funds will be deposited directly into your bank account.

When applying for a small personal loan, you must review all the terms and conditions before signing anything. 

Ensure you understand how much you will owe on your monthly loan and what happens if you miss payments. Make sure to read over any fine print so there are no surprises when it comes time to repay the money.

Make sure to carefully review the terms and conditions before accepting the loan. In addition, pay attention to the interest rate, repayment schedule, and any fees associated with the loan.

Once you’ve received it, repay it according to the loan agreement terms. This will help you avoid late fees and protect your credit score. If you’re late with a payment, the lender will likely report it to the credit bureaus. If you want to avoid that, repay your small loan on time.

Once you’ve received it, repay it according to the loan agreement terms. This will help you avoid late fees and protect your credit score. If you’re late with a payment, the lender will likely report it to the credit bureaus. If you want to avoid that, repay your small loan on time.

How to Qualify for Small Personal Loans With Bad Credit

Before applying for a loan, check your credit report for errors, and dispute any inaccuracies. You can get a free copy of your credit report from each of the three major credit reporting agencies once a year at AnnualCreditReport.com.

To get the best deal, you will want to shop around for lenders accepting people with bad credit. You must do this because lenders have different requirements for people with poor credit scores.

You should also compare rates and terms to know what each lender offers before deciding which one will give you the best deal. For example, some lenders may offer lower rates but charge higher fees, while others may not levy any fees but charge higher interest rates on their loans.

Compare rates and terms from multiple lenders to find the best deal. Look for lenders that specialise in loans for people with bad credit.

If you need a small loan and have bad credit, consider getting a secured loan instead of an unsecured one. A secured loan requires collateral. 

If you can’t repay the loan, the lender can sell or repossess the collateral (the thing in which you’ve invested). That incentivizes you to pay back the money on time — if not, you lose whatever you put up as collateral.

If you have collateral, such as a car or savings account, you may get a secured loan with better terms than an unsecured loan.

Your application will be reviewed by lenders who look at the information provided on your application and use it to determine whether or not they can approve your loan. If your credit score is low, it is unlikely that you will be approved for a large loan amount.

The best way to increase your chances of getting approved for a small loan is by providing additional documentation, such as proof of income or pay stubs. Also, include information about any assets that can be used as collateral against the loan. 

These items will help demonstrate that you are financially responsible and give the lender confidence that you will return their money.

Some lenders may consider other factors, such as your employment history or income when evaluating your loan application. Therefore, be prepared to provide additional documentation that supports your ability to repay the loan.

A co-signer agrees to be responsible for the loan if you stop making payments. If your credit is bad and you cannot qualify for a small personal loan alone, you may ask a friend or family member for help. You should only do this if you can trust that person not to take advantage of your situation. 

If you’re worried about the co-signer taking out the money and leaving you with nothing, don’t ask them! One of the best ways to qualify for a small personal loan with bad credit is by getting a co-signer who has good credit and can ensure the debt is paid off on time.

Work on improving your credit score by paying your bills on time, paying down debt, and keeping your credit card balances low. Over time, your improved credit score can help you qualify for better loan terms.

How To Spot A Predatory Small Loan

When looking for a small personal loan, picking the first lender that comes along and offers you a competitive interest rate can be tempting.
 

But if you don’t look closely at the loan terms, you could pay more than expected fees or have to repay your loan early.

That’s why knowing what to look for when shopping for small loans is important. 

Here are some signs that a lender might be predatory:

The APR is the rate of interest plus fees on your loan, expressed as an annualised percentage. A high APR means you’ll be paying back more than you borrowed, which can add up quickly if you only borrow small amounts.

Predatory lenders often use tactics like deceptive advertising and high-pressure sales pitches to make borrowers feel like they don’t have any other options but to take out a loan from them. If it sounds too good to be true, then it probably is.

Whenever you apply for a loan, ensure you know what fees might be associated with it. You should always check for processing and origination fees — and ensure they’re disclosed in your loan agreement. 

Don’t sign anything until you understand what charges will be tacked on after you take out your loan, whether they’re fixed or variable rates, and when they will be due.

FAQs About Small Personal Loans

Getting a small personal loan with bad credit may be challenging. Lenders typically use credit scores to determine whether to approve a loan application and what interest rate to offer. 

If you have a low credit score, you may be seen as a higher-risk borrower, leading to higher interest rates, fees, and stricter eligibility requirements.

Yes, many banks offer small personal loans. Banks may offer various personal loan options, including secured and unsecured loans, lines of credit, and credit cards.  These loans’ specific terms and eligibility requirements can vary by bank and borrower’s creditworthiness.

For the most personal loan lenders, $1,000-$5,000 is the lowest amount you can borrow. But the minimum loan amount can vary substantially from one lender to another.

Small personal loans can come with high-interest rates, fees, and penalties if payments are missed or late. Additional debt can also impact your credit score and overall financial health.

Several types of small personal loans include installment, payday, and lines of credit. Installment loans are repaid regularly over a set period, while payday loans are typically repaid in full on the borrower’s next payday. Lines of credit allow the borrower to borrow and repay funds up to a set credit limit as needed.

Conclusion: What Is The Smallest Personal Loan I Can Get?

Small personal loans can prove to be an invaluable asset for individuals seeking fast access to funds to achieve their financial objectives. Whether your aim is to settle a debt, make a significant purchase, or cover unforeseen expenses, a small personal loan can provide the necessary financial support.

However, it’s essential to understand the pros and cons of a personal loan, along with the various loan types available. Additionally, it’s crucial to evaluate your financial circumstances and determine whether taking on additional debt is the right decision for you.

By carefully considering and borrowing responsibly, a personal loan can help you realize your financial aspirations. Before applying for a personal loan, it’s recommended to conduct research and compare different lenders and loan options. Look for lenders with competitive interest rates and terms that align with your needs and budget.

About the author

Shatakshi Sinha

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