Small loan lending options

It is common to use a loan for major financial projects, such as consolidating debt, renovating a home, or buying a car. But a loan can be useful to cover small goals, too – or even emergencies.

Small loans may not be as common as larger ones, but you can find lenders offering loan minimums as low as $1,000 today. Here’s a look at where you can get a $1,000 loan and other small loan options.

Not every lender offers loans as small as $1,000; many have minimum loan amounts of $2,000 to $5,000.

There are other ways to get up to $1,000 if you’re in jail, including credit cards. Just be aware that these options can be expensive. Have a plan to repay your loan quickly to avoid long-term debt.

If you find yourself borrowing more often than $1,000, think about how you can prioritize saving money. Using an emergency fund to cover unexpected expenses or get you through a period of unemployment is more expensive than taking out a loan, which you have to pay back in fees and interest. Even if you can save a large amount now, small monthly contributions can add up over time.

While you’re working on saving for the future, here are a few options to consider if you need to borrow $1,000 today:

Not all personal loan lenders offer loans as small as $1,000, but there are options available. Here are a few of our top lenders that offer $1,000 loans:

• LendingClub: Personal loan rates start at $1,000. You can get your money in 24 hours, but transaction fees can be up to 8%.

• Getting started: Personal loan rates start at $1,000 (although some states have higher minimum rates); You can receive your funds as soon as one business day after approval.

• Upgrade: Personal loan rates start at $1,000 with origination fees as low as 9.99%.

Personal loans like these allow you to repay the loan amount at a fixed interest rate over a fixed period of time, with monthly payments. Let’s say you qualify for a $1,000 loan with an interest rate of 16%, a 7% down payment, and a loan term of 24 months. You’ll pay about $1,164 in total over the life of the loan with a monthly payment of $52.

Personal loan terms vary; be sure to check the interest rate, term, and other details before borrowing. You’ll need a strong credit score to qualify for the best terms and interest rates. If you don’t have good credit, the loan can be very expensive.

Also look at the loan fees you have to pay. Origination fees, for example, increase the amount you pay your lender to take out the loan. And depending on how you plan to repay the loan, prepayment penalties may apply.

Finally, search for personal loans and credit unions that you qualify for and local banks in your area. You may find other options for a $1,000 personal loan with favorable terms and interest rates, depending on your credit history and history with the bank or credit union.

If you’re looking for a small loan to last you until your next payment, an alternative payday loan (PAL) may be a better option than a high-cost payday loan.

PALs are available at state credit unions and have certain conditions mandated by law. These loans range from $1,000 to $2,000, depending on the type, with loan terms ranging from one month to six or 12 months. PALs have the highest interest rate of 28% at state credit unions, and you must be a member of a credit union to qualify.

For short-term, $1,000 loans, PALs are more affordable than payday or pawn shop loans, which come with much higher interest rates.

Related: 7 credit unions anyone can join

Most credit cards have credit limits over $1,000. If you have an emergency or need to make a purchase and pay later, a credit card is an easy option.

Credit cards have a grace period of at least 21 days between the closing of your monthly statement and the time your statement balance is due, so you’ll have a few weeks to pay off the $1,000 charge before interest kicks in. This is a solid option if you have to pay now and you know you will have the money to pay it off in the short term.

If you can’t pay off your $1,000 purchase before your monthly bill comes due, you can pay the minimum – although you’ll start accruing interest on the remaining balance. Credit card interest is expensive and your balance can add up quickly, so make sure you have a plan to pay off what you owe as soon as possible.

If you have good credit, consider opening a 0% APR credit card. You can use the card to cover your purchases and have the entire introductory period (usually 12 to 18 months) to pay it off interest-free. You should aim to pay the amount back before the end of that introductory period, or any remaining balance will start accruing interest at your card’s regular APR.

If you need cash fast, it is possible to get cash on your credit card. Like other more expensive loan options, this is expensive and should not be your first choice.

Fixed income is expensive because it carries both the fees and the interest rate. Prepayment fees are a percentage of your loan, with a minimum dollar amount. For example, the upfront fee can be 5% or $10. Prepaid interest rates are often more expensive than your credit card’s already high regular APR — and for paying off, there’s no grace period. Interest will start accruing as soon as you receive the money.

Whether you can use a cash advance to borrow $1,000 will depend on the terms of your credit card. You can withdraw the cash you’ve been offered based on your credit limit, although there may be a cash limit to keep in mind. For example, if you have a credit limit of $5,000 and a prepayment limit of 50%, the most you can get advanced is $2,500. If you have a low credit limit, you may have more difficulty reaching $1,000 in cash advances.