How To Get a $1,000 Personal Loan

Whether an unexpected auto repair, dental bill, or family emergency has left you scrambling to raise $1,000, you’re not alone. 37% of adults would need to borrow to cover an emergency expense of $400 or more, according to a Federal Reserve report. A $1,000 personal loan offers low rates and flexible repayment terms, which make it a manageable alternative to other short-term loan options. But you’ll need to meet a few qualification requirements. 

We’ll cover your emergency loan options for a $1,000 expense, including small personal loans and a few alternatives for bad credit, plus approval odds and cost estimates for $1,000 loans. Once you’re out of the woods, you can restock your emergency fund, so you’ll be prepared for the next unexpected bill that comes your way. 

Compare personal loan interest rates

Types of $1,000 loans

There’s more than one way to borrow $1,000. Some loan types come with low interest rates and plenty of time for repayment, while others can trap you in a cycle of debt.

Make sure to compare your options before applying. “Slow down, read the terms and conditions, and don’t get stuck with a loan that’s going to spiral into a financial anchor that negatively impacts you for months or years to come,” warns Tamsen Butler, financial author and adjunct financial literacy continuing education instructor at Iowa Western Community College.

Personal loans

• Recommended? Yes

You can get a personal loan from a bank, credit union, or online lender. Personal loans are a safer alternative to high-interest, short-term loans. The interest rate, monthly payment, and repayment term are fixed, and since most are unsecured, you don’t have to provide collateral, like a car or a home that you own, to back the loan. 

While some personal loan lenders set higher minimum borrowing limits, such as $2,000 or more, others allow you to borrow $1,000 and pay it back over time. The lenders below offer $1,000 loan amounts and fast funding:

• Upgrade: Great if you have fair credit or a low income, or if you want to secure your personal loan with collateral
• Happen Bank: Great for low rates or applying jointly with a partner or family member
• Upstart: Great if you have a limited credit history, especially if you have a strong academic background; also good for low rates and excellent customer service
• Alliant Credit Union: Great for no origination fee and flexible repayment terms (requires credit union membership)

Bank loans

• Recommended? Yes

Some banks offer small-dollar loans, typically up to $1,000 with months-long repayment terms. Requirements vary, but these programs are typically only available to existing account holders. Short-term bank loans offer low-cost alternatives to other no-credit-check loans, like payday loans and cash app advances. 

One example is the U.S. Bank Simple Loan, which allows U.S. Bank personal checking account holders to borrow up to $1,000 and repay the balance in three monthly installments. The fee is $6 for every $100 you borrow, which equates to about a 35.6% APR. 

Credit cards

• Recommended? Sometimes

A credit card can be a good way to pay for a $1,000 expense if:

• You can repay the full balance within the credit card’s grace period to avoid interest
• You can qualify for a 0% APR credit card, like the Chase Freedom Unlimited, and repay the full balance within the promotional period
• You have or can qualify for a low-APR credit card from a credit union, like the Star One Visa cards, and can repay the balance within a year 

With many credit cards, interest accrues daily, which means carrying a balance on a high-APR credit card over several months can lead to mounting debt. Unless the situations above apply to you or you have a manageable plan for repayment, consider alternative options. 

Payday alternative loans (PALs I or II)

• Recommended? Yes

If you can’t qualify for a personal loan because you have bad credit, you may be able to get a payday alternative loan from certain federal credit unions without a credit check. Even if the credit union near you requires a credit check, the approval criteria might be more flexible than you think. “You’re probably more likely to be able to speak to a loan officer about your application and explain your situation at a credit union than you would be at a big bank,” says Butler. 

PAL II loans are open to new credit union members and available in amounts up to $2,000. Because interest rates are capped at 28% and repayment terms are available up to 12 months, repayment is typically more manageable with a PAL II loan than with a payday loan or title loan. 

Payday loans

• Recommended? No

Payday lending laws vary by state, and amounts up to $1,000 aren’t always available. In states that permit $1,000 payday loans, such as Delaware, payday loan fees can equate to triple-digit APRs. A loan’s APR lets you compare $1,000 loan options. However, you’ll typically need to use a payday loan calculator to determine its APR, as most payday loan lenders don’t advertise it.

High APRs combined with short repayment terms make payday loans risky. “Payday loans can quickly become a problem if not managed properly,” says Butler. “You get the first one in response to the emergency, and then when it comes due you discover you need another payday loan to make ends meet, and so begins a vicious cycle. Payday loan companies know this, so they might make it really easy to jump right into another loan once the first one is paid off.”

Title loans

• Recommended? Rarely

Like payday loans, car title loans aren’t legal everywhere, and APRs differ by state. Short-term title loans — less than a few months — are not only high-cost, but are secured by the title to your vehicle. If you struggle to repay a title loan, the lender could repossess your car. Some lenders may allow you to roll the loan into a new one, but mounting fees can make this a downward debt spiral.

Some states have longer-term title loans that may be less risky or have lower APRs. If you feel like a title loan is one of few options available to you, aim to find a loan with a repayment term of at least 12 months and an APR below 36%.

High-cost installment loans

• Recommended? Sometimes

High-cost installment loans sit in a gray area between personal loans and payday loans — they typically have much longer repayment terms and lower APRs than payday loans, but they’re still much more costly than traditional personal loans. The benefit is that they’re accessible to people with bad credit and are often available with only a soft credit check. Online lenders typically use rent-a-bank schemes to get around state interest rate ceilings in order to offer them.

The rates and terms can vary widely from one lender to the next — some  lenders might charge over 200% APR in some states. But if you’re out of options, installment loans are often preferable to payday loans and short-term title loans. With on-time payment, you can even use an installment loan to build credit. 

Approval estimates for $1,000 loans

The best way to get an estimate of your approval odds for a $1,000 personal loan is to prequalify with a lender. To give you a rough idea, the table below shows the percentage of Credible borrowers in each credit score range who prequalified over the last 12 months, along with their average income and estimated interest rate.

Top loan purposes for $1,000 loans

You can use a personal loan for almost any expense, from auto repairs to medical bills. The table below shows the most common loan purposes borrowers selected when prequalifying for loan amounts around $1,000 on the Credible marketplace.

How to compare options for $1K loans

When choosing a $1,000 loan, consider the following.

Qualification requirements

Narrow down your options based on loan types and lenders you can qualify for. Start by checking your credit score and adding up your total income. If you want to expand your options, look for lenders that allow you to apply with a cosigner or co-borrower. If you have a friend or family member who has good credit and is willing to guarantee the loan, it can help you get approved. 

Total cost of repayment

When comparing loan estimates, consider the APR, which is the annual cost including interest and upfront fees. But an even more important factor is the total cost of repayment, which depends on the loan repayment term. Use a personal loan calculator to determine how much you’ll pay in interest and loan fees over the life of each loan option. 

Funding time

Sometimes, when you need $1,000, you need it fast. An emergency home or auto repair could leave you scrambling for a way to get the money within 24 hours. Fortunately, some lenders offer same-day or next-day loan options, which can help narrow down your options if you need an emergency loan. 

Repayment terms

Can you afford to repay your loan over the next month, or do you need more time? Your budget and timeline for repayment will determine the type of $1,000 loan that works best for you. Keep in mind that while personal loans typically have a minimum repayment term of one year, most lenders don’t charge prepayment penalties. That means you can repay the loan early and save money on interest. 

Lender reputation

A lender’s reputation is important, especially with certain loan types — for example, some high-cost installment lenders are better than others. And the customer service experience can vary between online personal loan lenders. Before you apply, check third-party websites like Trustpilot for customer reviews and look into the lender’s customer service options.

How much can a $1,000 personal loan cost?

The cost of a $1,000 personal loan depends on the APR and repayment term. The lower the rate and the shorter the repayment term, the less you’ll pay overall. 

The average APR for a 2-year personal loan is just under 12%, according to the Federal Reserve. Given a 12% APR and a 2-year term, a $1,000 personal loan would cost about $130 in interest over the life of the loan. You’d pay $47 per month, or a total of $1,129 over two years. 

You can use our personal loan calculator below to get an idea of how much a personal will cost with different APR estimates and repayment terms.

Alternatives

• Emergency fund: Keeping enough cash in a savings account is always preferable to taking on debt. 
• Friends and family loans: Asking a friend or family member for a loan is a good way to avoid high rates and get more flexibility with repayment. If you want to make it official, use a free service like Chipkie to generate a contract. 
• Side hustle: This is about getting creative and resourceful. Do you have items of value you can part with? Consider selling or pawning individual items or holding a yard sale. If you have an in-demand skill or access to gig work, consider earning cash as an alternative to borrowing it.   
• Hardship programs/payment plans: If you need money to pay a medical provider or service provider, ask about monthly payment plans. If you’re worried about late debt payments, ask your creditor about hardship programs. 
• Government benefits: Check whether you qualify for Medicaid, SNAP, utility assistance, or other benefit programs that might lower your expenses and eliminate the need to borrow. 
• Nonprofit assistance: “Community organizations may have grants available if you demonstrate a need and lack of resources,” says Butler. You can use the 211 network to find local assistance. 
• Crowdfunding: With a crowdfunding site like GoFundMe, members of your extended social network can contribute small amounts of money toward a financial need, such as a veterinary bill or family emergency.