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Small Personal Loans 2022 – How to Get Small Loans Online

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How can I get small loans online fast? First and foremost, to get a small personal loan, you have to first compare various online lenders and credit unions for cheaper and affordable loans. Small personal loans can assist you financially when you are in need of small urgent cash to cater for small emergency cost that shows up suddenly like brake pad in your car, car battery, oil change and lots more.

Small Personal Loans 2022 - How to Get Small Loans Online

You can get a small loan with small amount of money as low as hundred dollars from these lenders. However, you must compare the various offers and rates for each lender before applying for a small loan.

Small loan amount usually ranges from $300 minimum to $2,000 maximum. Below are lists of small personal loans from different lenders.

  • Oportun: Loans starting below $1,000.
  • SeedFi: Loans starting at $1,200
  • OneMain: Loans starting at $1,500
  • Upgrade: Loans starting at $1,000
  • Upstart: Loans starting at $1,000
  • PenFed: Loans starting below $1,000.
  • LendingClub: Loans starting at $1,000
  • Universal Credit: Loans starting at $1,000
  • Best Egg: Loans starting at $2,000.
  • Prosper: Loans starting at $2,000.

What is a Small Loan?

A small loan is regarded as a loan that is less than $2,500 and comes with varying repayment terms from the lenders. Some reliable lenders can give you a few months or years to pay back your small loan.

Many factors vary when it comes to getting a small loan. The Annual percentage rates (APR) ranges from 6% to 36% and this comes with the lowest interest rate to borrower with good to excellent credit. According to reports gathered from Consumer advocates, the highest APR for a cheap loan is 36%.

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Where Can I Get a Small Loan?

You can get a small personal loan from the following;

Banks

You can get a small-dollar loan from banks from some popular banks. These banks introduced the small loans to their customer to take care of their urgent needs and they can repay back using their savings or checking account. This means if they fail to repay the loan as when promised, the bank will automatically deduct the money from their account.

  • Bank of America’s Balance Assist: offers small loans to their customer between $100 and $500 and must be repaid over three month. This loan comes with a charge fee of $5.
  •  Wells Fargo: offers short-term small loans up to $500 after its announcement in 2022. Customers who borrow the money will repay the money every three month (three monthly installment payment method).
  •  U.S. Bank Simple loan: this bank provide small loan between $100 and $1,000 and must be repaid over three month. The loan charge fee is $6 for every $100 borrowed.

Online lenders

You can also get small personal loans from online lenders and the loan amount you can get from them begins with $1,000 or $2,000. Most online lenders offer you a prequalification to show you are qualified and meet their repayment terms on the loan.

Capital Good Fund is a good example of one of the few online lenders that offer you small loan of $1,000 or less with lower interest rates. You can get this loan in various states but the loan amount you can get vary depending on the state you choose.

Credit Unions

Many credit unions may require you to become a member to become eligible for a personal loan and will not even consider your credit history.

You can get payday alternative loans from some federal credit unions and the loan amount ranges from $200 to $2,000 especially to borrowers with poor credit scores.  The maximum APR of personal loans is 18% while the maximum APR for payday alternative loans is 28% for Federal credit unions.

How Can I Get a Small Loan?

When you want to apply for a small personal loan, you have to do the following to receive your loan.

  • Check your Credit and Debt Report: before you think of applying for a small loan, the first thing to do is to check your credit report to check if you owe any unpaid debts and other delinquency. It is also important to calculate your debt-to-income (DTI) ratio, a ratio lender uses to know how much of borrower’s income is spent on other debts. Your DTI must be below 40 as preferred by many lenders if you want to qualify and get the loan.
  • Gather Necessary Document: many lenders will ask you to provide your personal and financial information to know if you are capable of paying back your loan. You will have to gather this information before you apply to hasten you application process, These information include your  social security number,w-2s, pay stub on an application, monthly income statement, letter from your employer, and lots more.
  • Pre-qualify: you can use the pre-qualification process recommended by some lenders to get you eligible for the loan and the repayment terms.
  • Submit the application: once you are through with the application process, it is time for you to submit your application since your application is online for online lenders. For local banks and credit unions, you submit your application in person. Once your application is approved, you can get funded with a day to a week depending on the lender you are dealing with.

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How Can I Compare a Small Loan?

You have to compare various rates and features of different lender before choosing where to apply a small loan.

  • Repayment terms: the repayment term for most personal loans is usually one to seven years while this might be different for some lenders. In other words, the repayment term might be short and limited. Keep in mind that a along repayment term will require you to pay more interest. It is advisable you look out for a term with low interest payment but can enable you clear your debt quickly.
  • APR: kindly go in search for the loan with the lowest APR because it is the least expensive loan.
  • Requirements: check a lender requirement for borrowing out money to know if you can be eligible. Some lenders may require a stellar credit score while other will require excellent credit score and a good monthly income.
  • Loan Amount & Payment: know the amount of loan you want to borrow from the lender and ensure you are able to repay back the loan. You can make use of a personal loan calculator to see the various rate and repayment terms you will need to get a cheap monthly payment.
  • Funding Time: once your loan is approved, your account will be funded. Funding can take up a few days or a week to get your bank account. However, this depends on your lender. It is best advisable to go for the lender that offer fast funding so that you can cater for your need as fast as possible.

How Can I Qualify for a Small Loan with Bad Credit?

If you have a poor or bad credit (629 or lower), you might still be eligible for a small loan from a credible online lender or credit union but it may come with a higher rate from the lender. However, you can boost your chances of qualifying by doing the following;

  • Use a co-signer to improve your credit score
  • Drop your collateral for the loan such as land, car, or investment account.
  • Try building your credit score before applying.

Small Personal Loans Alternatives

If you are in need of an emergency small loan, you can use the following alternative means;

  • Friend and family members
  • Peer-to-peer lending
  • Side hustle
  • Get financial help from non-profit organization like churches, mosque, and charities.
  • Borrow from cash advance app and pay later with your next paycheck.

Compare Small Personal Loans in 2022

LenderEst. APRLoan AmountMin. credit scoreStar Rating
PenFed Credit Union Personal Loan4.99-17.99%$600-$50,000None 5.0/5
Best for Small loans starting below $1,000
Oportun27.74-35.95%  $300-$10,000None3.0/5
Best for Loans starting below $1,000
LendingClub27.74-35.95%  $300-$10,0006005.0/5
Best for Small loans starting at $1,000
Upgrade5.44-35.47%  $1,000-$50,0005605.0/5
Best for Small loans starting at $1,000
Upstart5.40-35.99%  $1,000-$50,000None4.5/5
Best for Small loans starting at $1,000
Universal Credit8.93-35.43%  $1,000-$50,0005604.5/5
Best for Small loans starting at $1,000
SeedFi Borrow & Grow Personal Loan7.42-29.99%$1,200-$7,0005204.5/5
Best for Small loans starting at $1,200
OneMain Financial18.00-35.99%  $1,500-$20,000  None  4.0/5
Best for Small loans starting at $1,500
Best Egg  5.99-35.99%  $2,000-$50,0006004.5/5
Best for Small loans starting at $2,000
Prosper7.95-35.99%  $2,000-$40,0006003.5/5
Best for Small loans starting at $2,000

Table source & Star rating: Nerdwallet

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