How to get a $10,000 loan (2024)

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

• A $10,000 loan can pay for major life events, debt consolidation, and more.
• You can take out a $10,000 loan with a bank, credit union, or online lender.
• Make sure to budget accordingly and set a goal before taking out a personal loan.

Qualified borrowers can get approved for a $10,000 personal loan from most banks, credit unions, and online lenders. Personal loans can be used for almost any reason, such as debt consolidation, medical bills, major life events, or even paying your taxes.

But a $10,000 loan can be risky if you don't make smart budgeting decisions. Your financial situation and ability to borrow in the future can be badly damaged if you aren't able to repay your loan. So make sure you've considered all your options before turning to the nearest lender.

Here's how you can get approved for a $10,000 personal loan.

See Insider's picks for the best personal loans >>

How to get a $10,000 loan

Personal loans are typically unsecured loans, which means that lenders need to review your income and credit before approving your loan request. Every lender has its own qualification requirements, but most will look at the following:

• Income and employment: Most lenders require you to show proof of where you work as well as details like how long you've had your job and what your title is. Some may set a minimum salary requirement. You can show proof of income and employment with pay stubs, tax returns, a job verification letter from your employer, and W-2 forms.
• Credit score and history: Your credit score and history are key to getting your loan approved for a personal loan. Lenders will look for things like late payments, multiple new credit lines, history of bankruptcy, or maxed-out cards to assess the risk of you not repaying your $10,000 loan. Having no credit is just as bad, if not worse. Ideally, to get a loan you should have a minimum credit score in the mid-600s. These days it's easier than ever to check your credit score for free.
• Debt-to-income (DTI) ratio: Your debt-to-income ratio, or the percentage of your income that goes toward monthly debt payments, is also key to getting approved for a $10,000 loan. You can calculate your DTI ratio by adding up all your debt payments, such as credit, car payments, and other loan payments, and dividing that amount by your gross monthly income.

Before applying for a $10,000 loan, double-check that you have all the necessary documents, review your credit score, and calculate your debt-to-income ratio. You'll have the most success getting approved for a loan with a good credit score (at least 670), and a DTI ratio of 36% or lower.

Get prequalified for a $10,000 loan

Before submitting an official application, compare the different kinds of loans available to you, the terms, interest rate, and any fees the lender charges. The best way to review loan offers is through prequalification. Many credit unions, banks, and online lenders will offer prequalification to potential borrowers.

Prequalification can provide borrowers with a better idea of whether or not they are likely to get approved. Keep in mind that getting approved through prequalification does not mean you've been approved for a loan. It just indicates that you're likely to be approved unless issues that didn't appear in the prequalification process present themselves in the more thorough formal approval process.

To prequalify for a personal loan, lenders will examine things such as employment status, household income, monthly debt payments, the purpose of your loan, and personal identification documents. Make sure to have your ID, Social Security number, address, and similar documents on hand. At this point, lenders will do what's known as a soft credit pull, which has no impact on your credit score.

Keep in mind, however, that if you follow through with a formal loan application, ther will be a hard credit inquiry, which will temporarily reduce your credit score slightly.

How to qualify for a $10,000 loan with bad credit

A good credit score is essential when getting approved for a $10,000 loan. Borrowers with the highest credit scores, such as those with scores of 740 or more, can get the lowest rates.

On the flip side, those with the lowest scores, such as those with scores under 580, are often offered high-interest rates. The best personal loans usually require at least a "good" credit score. A score of at least 670 is considered in good standing, and the minimum for most lenders. So to get a loan with a bad credit score, you may want to reconsider or brainstorm some other options. However, some lenders, such as Achieve personal loans, will approve you for a loan with a credit score as low as 620 (and some go even lower).

Some lenders specialize in loans for borrowers with bad credit. But even the best loans for bad credit come with some of the higherst interest rates in the market, and some charge fees. Personal loans through a credit union are often a good option for folks with bad credit. They're often more flexible with rates and terms than other lender, and APRs are capped at 18% by the National Credit Union Administration.

$10,000 loan offers

If you're looking to take out a $10,000 loan, here are some lenders worth considering:

LightStream Personal Loan

LightStream is best for borrowers with excellent credit scores, but you can still qualify with a score as low as 660. These loans are mainly used for medical debt, debt consolidation, and home remodeling.

One perk of LightStream is that it offers one of the lowest annual percentage rates (APRs) even compared to similar lenders. Its APRs range from 7.99% to 25.49% (with AutoPay discount, rates vary by loan purpose). LightStream also doesn't charge fees.

SoFi Personal Loan

SoFi is great for folks with a credit score of at least 680, but those with excellent credit scores may be able to get a better rate.

SoFi offers competitive loan rates, ranging from 8.99% - 29.49% fixed (with all discounts). Like LightStream Personal Loan, SoFi doesn't charge additional fees and offers added benefits like unemployment protection. Although most borrowers approved for a loan with SoFi have generally had an annual income of $100,000 or more (as found by Credible), you may still be able to get approved with lower annual incomes.

PenFed Credit Union Personal Loan

PenFed Credit Union is best for folks with fair credit scores as the minimum requirement is a score of at least 580. If you're looking to take out a very small loan — such as one as low as $600 — PenFed may be a good fit. Rates range from 7.99% to 17.99%. There is a membership requirement for personal loans. Folks who served, or are currently serving, in the military can qualify for membership on that basis. Otherwise, you'll need to open a PenFed savings account, which requires a $5 minimum deposit.

Avant Personal Loan

Avant is a great loan option for borrowers with low credit scores. Avant has a minimum credit requirement of 600. This lender is popular with borrowers looking to get a small loan, such as a $2,000 personal loan. The highest loan you can get with Avant is $35,000. Rates range from 9.95% to 35.99%.

Avant does offer loans to borrowers with bad credit, but its APRs are generally high compared to other lenders. Avant also charges multiple fees, such as an up to 4.75% in administration fees with an undisclosed late fee and returned payment fee.

Upstart Personal Loan

If you have bad credit or a limited credit history, Upstart may be a good fit. It has a minimum credit score of 300 and is a great option for small loans. Uphold not only looks at your credit score but also other factors like education and employment history.

With Upstart, you can get a loan as small as $1,000, and rates range from 6.40% - 35.99% fixed. But residents of Massachusetts, Ohio, New Mexico, and Georgia will have higher loan minimums.

How to get a $10,000 loan FAQs

Should you take out a $10,000 loan?

When deciding whether or not you should take out a $10,000 personal loan, the decision essentially comes down to whether or not you can afford it. Often the larger your loan, the higher the risk. If you're unable to get a good rate, you may end up paying hundreds to thousands of dollars in interest. Moreover, missing a loan payment can put you in a bad financial situation.

If you have bad credit, taking out a $10,000 loan can prove difficult and you'll likely get stuck with a poor interest rate. You may be better off searching for loan alternatives or talking with a financial advisor about your current financial system.