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How To Get a $20,000 Personal Loan

If you need to borrow $20,000, here are several places you can turn.

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By Jessica Walrack

Written by

Jessica Walrack

Writer

Jessica Walrack is a freelance finance writer and journalist with over a decade of experience. During that time, she’s written hundreds of articles about loans, insurance, banking, mortgages, credit cards, budgeting, and taxes for well-known publications including CBS News MoneyWatch, USA Today, US News and World, Investopedia, and The Balance Money.

Edited by Charlie Tarver

Written by

Charlie Tarver

Editor

Charlie is an editor for Credible’s personal loans vertical. His time working on various desks has seen him edit a wide range of content, from long-form policy analysis to defense briefs and celebrity Q&As. After getting his start at Stars and Stripes as a Dow Jones News Fund intern, Charlie spent more than 5 years copy editing articles for The Hill’s website and print edition.

Updated February 14, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances.

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Credible takeaways

  • Before taking out a $20,000 loan, carefully consider your budget, income stability, and reasons for borrowing.
  • You can find $20,000 loans from a range of lenders, and may be able to borrow $20,000 from accounts you already have.
  • The cost of a $20,000 loan will depend on its repayment structure, APR, and loan term.

Are you in need of a $20,000 loan but aren’t sure how to get one? Good news — there are several possible options, from personal loans to borrowing against your 401(k) plan. However, each route has its pros, cons, and eligibility requirements. Read on to learn about what to consider before borrowing $20,000, the different ways to do so, and what to expect in terms of cost.

 

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What to consider before taking out a $20,000 loan

Before you take out a $20,000 loan, it’s important to review your budget. Look over your current income as well as your expenses to figure out the maximum monthly payment amount you can afford.

When setting on an amount, be sure to consider any income fluctuations you tend to experience. You want to be able to comfortably afford the payment in your best and worst months. The payments will also likely extend for several years to come, so consider the stability of your income source in the future. Is it reliable and long-term, or is there a chance it’ll be interrupted?

Another consideration is if the cost is worth it. A $20,000 loan could cost you thousands of dollars in interest and fees. Consider how you plan to spend the money and if it will offer returns that justify those costs.

Where to find a $20,000 loan

If you decide you want to move ahead and borrow $20,000, here are some places you can turn.

Personal loan lenders

Personal loans are installment loans that provide you with a lump sum of money, typically within days of applying (some lenders offer same-day personal loans). The loans are repaid, plus interest and fees, over a set term. In most cases they’re unsecured, but some lenders do offer collateral loans, which involve you pledging an asset to secure the loan. This can improve your chances of qualification or lower your rate.

A wide range of financial institutions offer personal loans, from banks and credit unions to personal finance companies and fintech lenders. While available loan amounts can range from $600 to $200,000 (depending on the lender), $20,000 loans are a fairly common offering. It’s also common for lenders to allow repayment terms up to seven years (but choosing a shorter repayment period could reduce your overall loan costs).

As far as qualifying, you’ll often need good or better credit (a FICO score above 670), and a stable income source that shows you can afford the payments. Annual percentage rates (APRs) for personal loans typically range from around 6% to 36%, depending on your credit profile and other factors.

Learn More: Best Personal Loans

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Tip

When narrowing down your options, focus on APRs. These take into account the interest rate and any upfront loan fees, such as origination fees, making them a better way to compare loan costs than interest rates alone.

You can typically check if you prequalify with multiple personal loan lenders in minutes, without hurting your credit score. This allows you to get a better idea of the rates and terms you may be eligible for with each lender. (Prequalification is not an offer of credit, however, and your final rate may be different. When you proceed to formally apply for a loan, the lender will conduct a hard credit inquiry that can bring your score down by a few points temporarily.)

Learn More: Does Applying for a Loan Hurt Credit?

Personal loan lenders that offer $20,000 loans

Where can you find personal loan lenders that offer $20,000 loans? In short, there are very many to choose from. Here’s a quick list:

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4.24.2

Credible rating

Fixed (APR)

7.49% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

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on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

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on Credible’s website

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4.44.4

Credible rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

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on Credible’s website

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4.64.6

Credible rating

Fixed (APR)

8.49% - 17.99%

Loan Amounts

$600 to $50000

Min. Credit Score

760

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on Credible’s website

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