Whether you’re tackling a big expense, consolidating debt, or funding that long-overdue vacation, a personal loan can be the boost you need. But navigating the loan process can feel like walking a financial tightrope. Here’s how to secure a $10,000 personal loan in a way that makes sense for you—without the stress.
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.
How to secure a $10,000 personal loan in 8 steps
Getting a personal loan doesn’t have to be complicated. Here’s how to do it step by step.
Step 1: Assess your financial needs
Before diving in, ask yourself why you need the loan and how much you really need to borrow. Be specific about what the $10,000 will cover—whether it’s for home repairs, debt consolidation, or medical expenses. Knowing your financial situation helps you avoid borrowing more than necessary, saving you from higher interest payments in the long run.
Step 2: Plan for repayment
Make sure you have a solid plan for repayment. Set a budget to ensure that your monthly payments fit within your finances, and avoid late fees or penalties by automating your payments if possible.
Step 3: Check your credit score
Your credit score is the first thing lenders will check to determine your loan eligibility. A higher score opens doors to better rates and terms, while a lower score might limit your options. Use free services like Credit Karma to review your score, and if it needs a boost, consider paying off some debt or addressing any errors on your report before applying.
Step 4: Compare lenders
Don’t settle for the first lender you find. Shop around and compare different offers from banks, credit unions, and online lenders. Focus on the interest rates, terms, and fees. Even a small difference in rates can save you hundreds over the life of the loan, so take the time to get multiple quotes.
Step 5: Prepare the necessary documentation
Having all the right paperwork ready will speed up your loan application process and improve your chances of approval. Lenders need proof that you can repay the loan, so being organized and thorough with documentation is key. Here’s what you’ll typically need:
- Proof of income. Lenders want to ensure you have a steady income to cover loan payments. Recent pay stubs or tax returns can prove your earnings and give lenders confidence in your ability to repay the loan.
- Employment verification. This is often needed to confirm you’re currently employed. Lenders may contact your employer directly or ask for documents like an employment letter.
- Valid government-issued ID. A driver’s license, passport, or state ID verifies your identity. Lenders need to confirm you’re legally eligible for the loan and prevent fraud.
- Proof of residency. Lenders also need to know where you live, and a utility bill or lease agreement will usually suffice. This helps verify your stability and further authenticates your application.
- Debt-to-income ratio below 40%. This ratio shows how much of your income goes toward paying debts. A lower ratio indicates to lenders that you have enough income left to manage the new loan payments comfortably.
- Bank statements for the last 2-3 months. Lenders often require recent bank statements to get a snapshot of your financial activity. This helps them assess your spending habits, savings, and overall financial health.
- Purpose of the loan. Some lenders ask about how you plan to use the loan. While this isn’t always necessary, having a clear purpose can improve your application’s credibility.
- Age requirement. You must meet the legal age requirement to qualify for a personal loan. Most lenders require borrowers to be at least 18 years old to apply.
Step 6: Apply online or in person
Once you’ve chosen your lender, it’s time to apply. Many lenders offer easy online applications that only take a few minutes to complete. If you prefer, you can apply in person at your local bank or credit union. Either way, make sure to fill out the application accurately and submit all the required documents.
Step 7: Provide any additional information
Sometimes, lenders may ask for extra info during the approval process. This could be more detailed income documentation or clarification on your credit history. Be prompt in responding to these requests to avoid any delays.
Step 8: Review and sign the loan agreement
Once you’re approved, carefully review the loan terms before signing. Pay close attention to the interest rate, fees, and repayment schedule. This is your last chance to catch anything you’re not comfortable with. If everything looks good, sign the agreement, and the funds should be disbursed shortly after.
Where to get a $10,000 personal loan
There are several options for securing a $10,000 personal loan. Here’s a breakdown:
Banks
Banks offer personal loans with competitive rates, but they often require good to excellent credit. If you have a long-standing relationship with a bank, you might also be eligible for loyalty discounts. Bank loans tend to have stricter approval requirements and a more lengthy application process.
Pros: Competitive rates, loyalty perks.
Cons: Requires strong credit, slower process.
Credit unions
Credit unions are known for their lower interest rates and more personalized service. They’re typically more flexible than banks when it comes to approval, especially for members. However, you’ll need to become a member to qualify, and their services may be more limited than larger banks or online lenders.
Pros: Lower rates, more flexibility.
Cons: Membership required, limited services.
Online lenders
Online lenders can be the fastest way to secure a personal loan. They typically have less stringent approval requirements and a quicker turnaround time, with some loans being approved in just a day. However, rates may be higher for those with lower credit scores, and there’s less face-to-face interaction if that’s important to you.
Pros: Fast approval, easy process.
Cons: Higher rates for below-average credit, no in-person service.
How to get a $10,000 personal loan with bad credit
Having bad credit doesn’t automatically disqualify you from getting a loan, but it can limit your options. Here’s how to help improve your chances:
Consider a secured loan
If your credit score is less than stellar, a secured loan might be your best bet. These loans require collateral—like a car or savings account—to reduce the lender’s risk. In return, you may get a better interest rate than with an unsecured loan.
Co-signer option
Another way to get approved is by having a co-signer with good credit. The co-signer agrees to take responsibility for the loan if you can’t repay it. This can significantly boost your chances of getting approved, but be sure to choose a co-signer who fully understands the risks.
Improve your debt-to-income ratio
Lenders often look at your debt-to-income (DTI) ratio when deciding on approval. Lowering this ratio can improve your chances, so consider paying off some smaller debts or increasing your income before applying for a loan.
Long-term costs associated with a $10,000 personal loan
The long-term cost of a personal loan depends on the loan term, interest rate, and monthly payments. Here’s an example breakdown:
| Loan term | Interest rate | Monthly payment | Interest |
| 3-year term | 5% | $299 | $764 |
| 3-year term | 7% | $309 | $1,103 |
| 5-year term | 5% | $189 | $1,340 |
| 5-year term | 7% | $198 | $1,876 |
The above example assumes fixed interest rates, no associated loan fees, and all payments being made on time without any prepayments. Projections are hypothetical, are provided for illustrative purposes only, and should not be construed as financial, legal, or tax advice.
Alternatives to a $10,000 personal loan
Not sure a personal loan is the right fit? Consider these alternatives:
- Credit card: A 0% APR credit card could be an option if you can pay it off during the promotional period.
- Home equity loan: If you own a home, this loan offers lower rates, but your home serves as collateral.
- Home equity line of credit (HELOC): Similar to a home equity loan, but you borrow only what you need when you need it.
- Peer-to-peer lending: Borrow from individuals through platforms like LendingClub, often with lower credit requirements.
Secure your loan
Getting a $10,000 personal loan doesn’t have to be complicated. By assessing your needs, checking your credit, and comparing lenders, you’ll be well on your way to finding the best loan for you. Whether you’re consolidating debt or covering a big expense, following these steps will help you secure the funds and manage repayment without stress.
FAQ
What credit score do I need for a $10,000 loan?
Most lenders prefer a credit score of 600 or higher, but you may still qualify with a lower score, especially with a co-signer or secured loan.
What is the monthly payment for a $10,000 loan?
The payment depends on the interest rate and loan term, but typically ranges from $200 to $400 per month.
How do I get $10,000 immediately?
Online lenders often offer the fastest approval, with some loans disbursed within 24 hours after approval.
