If you’re thinking about taking out a $20,000 loan for something like consolidating high-interest credit card debt, home improvements, or to pay some medical bills, the good news is that you have plenty of options.
Read on to find out how to shop for, apply for, and repay a $20,000 personal loan from a bank, credit union, or online lender.
In this post:
- Where to get a $20,000 loan
- What to consider before applying for a $20,000 loan
- Before getting your loan
Where to get a $20,000 personal loan
Below you will find some of your options when it comes to different types of personal loan lenders:
Online lenders
Getting an online loan is convenient — the websites of online lenders are available 24 hours a day, seven days a week.
Plus, online lenders can offer more competitive rates and sometimes even get you your loan amount more quickly (some the next business day).
The personal loan companies in the table below compete for your business through Credible. You can request rates from all of these partner lenders by filling out just one form (instead of one form for each) and without a hard credit check.
| Lender | Rates | Loan Amounts | |
|---|---|---|---|
 | Fixed: 9.95% - 35.99% APR | $2,000 up to $35,000** | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits *If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state. **Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33. |
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 | Fixed: 5.99% - 29.99% APR | $2,000 up to $35,000 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 5.99% - 29.99% APR | $10,000 up to $35,000 | Get Rates |
Loan terms Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 6.95% - 35.89% APR | $1,000 up to $40,000 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 15.49% - 34.99% APR | $2,000 up to $25,000 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 4.99% - 16.79% APR | $5,000 up to $100,000 | Get Rates |
Loan terms Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 6.99% - 28.99% APR1 (For NY residents: 6.99% - 24.99% APR) | $3,500 up to $40,000 | Get Rates |
Loan terms Loan uses Residency Time to get funds Key benefits 1APR discounts may be available for direct payment of outstanding credit card debt and autopay. 2 After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details. |
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 | Fixed: 5.99% - 24.99% APR | $5,000 up to $35,000 | Get Rates |
Loan terms Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 6.95% - 35.99% APR | $2,000 up to $40,000 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 6.98% - 35.89% APR | $1,000 up to $50,000 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits |
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 | Fixed: 6.14% - 35.99% APR1 | $1,000 to $50,0002 | Get Rates |
Loan terms Loan amount Loan uses Residency Time to get funds Key benefits 1The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 20% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. |
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In addition to getting a low interest rate, there’s another good reason to check rates with multiple lenders: You might be approved by some lenders and turned down by others.
But just because you’re turned down by one lender doesn’t mean you can’t get a loan. You might even be approved for a $20,000 loan with bad credit, but expect to pay a higher interest rate.
Interest rates for borrowers with better credit can be significantly lower than those with poor credit history.
Banks
Some banks like Chase, Bank of America, and Capital One don’t offer personal loans. But other big banks like Citizens, Citibank and Wells Fargo do. Most even offer an annual percentage rate (APR) discount if you set up automatic payments.
Credit unions
Credit unions can also be a good choice, since they’re nonprofit and might provide lower rates to members who already have a checking account or savings account with them. Many “all-access” credit unions have relaxed policies on membership.
What to consider before applying for a $20,000 loan
Make sure you do your homework and find a personal loan lender who’s offering the loan terms and rates that are best for you:
Terms
When evaluating your loan options, you’ll often have a choice of repayment terms, which is the length of time you’ll have to pay your loan back.
Typical repayment terms for personal loans are two to seven years.
But since you’ll be making fewer payments, your monthly loan payment will usually be larger if you choose a loan with a short repayment term.
Picking the loan with the shortest repayment term and largest monthly payment you can afford can save you hundreds or even thousands in interest.
Savings by accelerating repayment on a $20,000 personal loan
The table below shows how selecting a loan with a shorter repayment term can save you money if you’re willing to make a bigger monthly loan payment.
All of the loans are offered by the same lender, but you can get a lower interest rate and overall repayment costs with a shorter term loan.
| Repayment term | Interest rate | Monthly payment | Total interest |
|---|---|---|---|
| 3 years | 7% | $618 | $2,232 |
| 4 years | 8% | $488 | $3,436 |
| 5 years | 9% | $415 | $4,910 |
| 7 years | 10% | $332 | $7,890 |
Choosing a shorter loan term can result in a lower interest rate and reduce overall repayment costs. Interest rates are hypothetical for purposes of illustration only.
Interest rates
Most personal loans are offered as fixed interest rate installment loans. But if you’re offered a variable rate personal loan, just remember that your monthly payment can go up (or down) with your interest rate.
The table below shows how much you can save by shopping around for a better interest rate. All of the hypothetical loans in this table have the same loan repayment term, but the lenders are offering different loan rates.
| Interest rate | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 7.0% | $396 | $3,761 | $23,761 |
| 7.5% | $401 | $4,046 | $24,406 |
| 8.0% | $406 | $4,332 | $24,332 |
| 8.5% | $410 | $4,620 | $24,620 |
| 9.0% | $415 | $4,910 | $24,910 |
| 9.5% | $420 | $5,202 | $25,202 |
| 10.0% | $425 | $5,496 | $25,496 |
You can use our personal loan calculator to get an idea of what your monthly payment and total cost (including total interest) will be with a personal loan at the rate and terms available to you.
If you don’t like the interest rates you see when shopping for a personal loan, you might consider a secured loan, such as a home equity line of credit (HELOC) or cash-out mortgage refinance.
One drawback of a secured loan is that you need collateral (in this case your home) — unlike personal loans which are unsecured loans. This is used as a guarantee that you’ll pay the loan back.
Before getting your loan
Once you’ve found a loan with an interest rate, repayment term, and monthly payment you can live with, you can expect to be asked to provide documentation that verifies your identity and income. Often you can provide those documents in electronic form online.
If you can afford to wait before applying for a loan, you might be able to get a better interest rate by boosting your credit score:
- Check your credit report: Obtain a copy of your credit report from each of the credit bureaus and check them for errors.
- Pay down debt: If you’re carrying high balances on your credit cards, paying them down can also boost your score.
Once you’re happy with your credit score, just remember to do your due diligence and research to find the best personal loan lender for you.
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Checking rates will not affect your credit
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 3.99% - 35.99% APR with terms from 24 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
