Where to Get a $1,000 Loan: Loan Options for Small Loans

It is common to use loans for major financial initiatives, such as debt consolidation, home renovations, or car purchases. But loans can also be useful to cover smaller goals, or even emergencies.

Small loans may not be as common as larger ones, but today you can find lenders offering minimum loans as small as $1,000. Here’s where you can find $1,000 loans and other options for borrowing smaller amounts.

Not all lenders offer loans as small as $1,000; many have minimum loan amounts of $2,000 to $5,000.

There are also other ways to access $1,000 when you’re in a pinch, including credit cards. Just know that these options can be expensive. Have a plan to pay back what you borrowed as soon as possible to avoid long-term debt.

If you find yourself repeatedly borrowing amounts as small as $1,000, consider how you can prioritize saving money. Using an emergency fund to cover unexpected expenses or overcome a period of unemployment is much more profitable than borrowing money, which must be repaid with fees and interest. Even if you can’t save a substantial amount now, small monthly contributions can add up over time.

As you work to save for the future, here are some 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 some options available. Here are some of our top personal loan lenders offering $1,000 loans:

• Loan club: Personal loan amounts start at $1,000. You can receive your funds in as little as 24 hours, but origination fees can be as high as 8%.

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

• Improvement: Personal loan amounts start at $1,000 with origination fees as high as 9.99%.

Personal loans like these allow you to repay the borrowed amount at a fixed interest rate over a fixed period, with monthly payments. Let’s say you qualify for a $1,000 loan with an interest rate of 16%, an origination fee of 7%, and a loan term of 24 months. You would pay about $1,164 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 length, 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, a loan can be much more expensive.

Also be aware of the loan fees you will have to pay. Origination fees, for example, increase the amount you pay your lender to accept the loan. And depending on how you plan to repay the loan, prepayment penalties could apply.

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

If you’re looking for a small loan to make ends meet until your next paycheck, a payday alternative loan (PAL) might be a better option than payday loans at exorbitant costs.

PALs are available at federal credit unions and have specific terms set 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 a maximum interest rate of 28% at federal credit unions and you must be a member of the credit union to qualify.

For a short-term loan of $1,000, PALs can be much more affordable than payday or pawn shop loans, which have much higher interest rates.

Related: 7 Credit Unions Anyone Can Join

Many credit cards have credit limits of more than $1,000. If you have an emergency or need to make a purchase and pay for it later, a credit card is a convenient option.

Credit cards have a grace period of at least 21 days between the close of your monthly statement and the due date of your statement balance, so you’ll have a few weeks to pay off the $1,000 fee before interest starts. This is a solid option if you have a payment due now and know you will have the funds to cover it in a short period of time.

If you can’t pay your $1,000 purchase before your monthly bill is 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 grow quickly, so make sure you have a plan to pay off what you owe as quickly as possible.

If you have good credit, consider opening a 0% APR credit card. You can use the card to cover your purchase and have the entire introductory period (usually 12 to 18 months) to pay it interest-free. You must try to repay the amount before that introductory period ends, or any remaining amounts will begin accruing interest at your card’s regular APR.

When you need cash quickly, it’s possible to get a cash advance with your credit card. Like other high-cost loan options, this one is expensive and generally shouldn’t be your first choice.

Cash advances are expensive because they carry fees and interest rates. Cash advance fees are typically a percentage of the amount you borrow, with a minimum dollar amount. For example, the cash advance fee may be 5% or $10, whichever is greater. Cash advance interest rates are typically more expensive than your credit card’s already high regular APR, and for cash advances, there is 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 cash advances based on your credit limit, although you may need to consider a cash advance limit. For example, if you have a credit limit of $5,000 and a cash advance limit of 50%, the most you could receive up front is $2,500. If you have a lower credit limit, you may have a harder time accessing $1,000 with a cash advance.