How to get a $2,000 personal loan

If you need $2,000, a personal loan could be the best way to get it. Personal loans are more affordable than credit cards on average, according to data from the Federal Reserve. And unlike credit cards, they typically have fixed monthly payments and fixed interest rates that won't change. You can use personal loans for almost anything, like making a purchase, covering an emergency, taking a vacation, or paying off credit card debt. 

We’ll look at some of the best lenders offering $2,000 personal loans, including same-day loans, and how to get the lowest rate.

Personal loan lenders that offer $2,000 loans

Banks, credit unions, and online lenders all offer personal loans. But if you’re looking for a $2,000 loan, you need a personal loan lender with a minimum loan amount that qualifies.

The following personal loan lenders offer $2,000 loans:

How a personal loan works

Personal loans provide a lump sum of cash that you can use for almost any purpose, though some lenders only allow loans for specific purposes, such as debt consolidation. The application process is relatively quick, and you could potentially get the money the same day you apply, though within two business days of approval is more common.

When you take out a personal loan, you’ll typically make fixed monthly payments over a set repayment term, such as two to seven years, and pay interest on the principal balance. This is why it’s important to find a $2,000 loan with a rate, repayment term, and monthly payment that works for you.

Since most personal loans are unsecured (meaning collateral is not required), eligibility requirements may be more stringent relative to secured loans, like an auto loan or mortgage. In other words, it’s best to have a good credit score, sufficient income, and low debt-to-income ratio (DTI) to get the best rates.

How much will a $2,000 loan cost?

How much a $2,000 personal loan costs will depend primarily on two factors — the APR and the repayment term. The APR accounts for the interest rate and any upfront fees. Securing a lower APR can reduce total loan costs, while a higher APR can increase them.

Based on a $2,000 personal loan, here are various scenarios so you can get an idea of total costs.

3-year loan term

5-year loan term

You’d pay the least interest with the three-year loan with a rate of 10%. But you’d pay more interest on the five-year loan with an APR of 10% than you would on the three-year loan with a 15% APR.

Alternatives to a $2,000 personal loan

If you need a $2,000 loan, there are other options to consider. Some of these include:

• 0% APR credit card: If you have excellent credit, you may be eligible for a 0% APR credit card for purchases. The introductory rate is available for a limited time, generally six months to 21 months or more. Once that time is up, the standard APR kicks in. If you can pay the $2,000 loan off within the intro period, it’s a great way to get an interest-free loan. But if you can’t, you’ll owe interest on the unpaid balance, and may even owe deferred interest, depending on the promotion.
• Home equity line of credit (HELOC): If you’re a homeowner with sufficient home equity, you can use a home equity line of credit to get the funds. Be aware that, unlike most personal loans that come with fixed rates, HELOCs often have adjustable rates.
• Home equity loan: Homeowners with equity might be able to get $2,000 via a home equity loan. Unlike a HELOC, this type of loan often has a fixed rate. Whether you use a line of credit or loan from your home equity, understand that if you default on payments you may face foreclosure. Home-equity based loans can also take a month or more to close.
• Payday alternative loans: Some credit unions offer payday alternative loans (PALs). PALs were created as a more affordable and flexible alternative to payday loans and are designed for borrowers with fair credit and bad credit. PALs II (a type of PAL) offer loan amounts up to $2,000, and have repayment terms of up to 12 months. Even if you’re not currently a credit union member, PALs II are available to new members immediately upon joining.

How to compare $2,000 loans

Compare lenders before applying for a $2,000 personal loan, and consider the following:

1. Review eligibility requirements: Lenders often have minimum credit score and minimum income requirements — be sure you meet those minimums before applying. Some lenders make this information available on their website or on personal loan platforms they partner with.
2. Consider your DTI: Your DTI is a percentage calculated by dividing your minimum monthly debt payments (credit cards, mortgage, auto loan, etc.) by your gross monthly income. Lenders typically prefer a DTI less than 36% to help make sure you aren’t overextended financially, and have room in your budget for an additional payment. You may still qualify for a loan with a high DTI, but be prepared to pay a higher rate.
3. Prequalify: Most lenders offer prequalification, which lets you see rate estimates based on your credit score and other information that allows lenders to perform a soft credit pull. Once you have quotes, you can compare them more closely across the following criteria.
4. Compare APRs: The APR on a personal loan accounts for the interest rate as well as any upfront fees, like an origination fee. As such, it’s a truer measure of the cost of a loan than the interest rate alone. If you have excellent credit, you may qualify for a relatively low APR. If you have fair or bad credit, your rate could be around or upward of 30%.
5. Compare repayment terms: Many lenders offer repayment terms between two and seven years. Consider that with a shorter repayment term you can save money on interest and pay off the loan faster. A longer term would mean a lower monthly payment, but more interest over the life of the loan. Note that shorter term loans often carry lower interest rates as well.
6. Compare monthly payments: When you take out a loan, you’re adding another monthly expense to your budget. Be sure you can comfortably afford the monthly payment for the duration of the loan’s term.
7. Consider total costs: If you need to take out a $2,000 personal loan, you’re not just paying the lender back $2,000 over time. You’re paying interest and potential fees as well. Fees may include an origination fee, late fees, and insufficient funds fees. You can use a personal loan calculator to see how much the loan will cost with interest and an origination fee. Note that any late fees and insufficient funds fees won’t be figured into the loan’s cost.
8. Complete an application: Once you’ve found a lender that suits your needs, continue with a formal loan application. You’ll likely need to provide documentation to verify your income and residency, and the lender will conduct a hard pull on your credit, which could impact your score.
9. Review the loan agreement: If approved, review the loan agreement before signing. If it looks good, sign, and await delivery of your funds.

Non-loan alternatives

There are many ways to get $2,000 but not all of them may be right for you. Some other $2,000 loan alternatives include:

• Crowdfunding: Depending on the reason, you may be able to crowdfund $2,000 via GoFundMe and other platforms. Popular uses are medical or veterinary expenses.
• Local resources: If you need $2,000 to cover basic needs, like food or utilities, look into local resources using FindHelp.org and 211.org and putting in your ZIP code.

$2,000 loan FAQ

Can you get a $2,000 loan with bad credit?

It may be possible to get a $2,000 loan even if you have bad credit. Look for lenders that have a low or no minimum credit score requirement, and consider applying with a cosigner or with a co-borrower with good credit to improve your rate. But, in general, expect higher rates and fees.

Are $2,000 loans easy to get?

A $2,000 loan can be relatively easy to get if you have average to excellent credit. If your application is filled out properly, you could be approved as soon as the same day and get your funds the next, depending on the lender’s funding timeline. Those with bad credit may still qualify, but may have a harder time getting approved.

Should I get a $2,000 loan?

A $2,000 loan can make good sense if you don’t have the cash on hand, or don’t want to borrow from an emergency fund to get it. It can also be an affordable alternative to using credit. Review the APR to understand interest costs and make sure the monthly payments fit into your budget.