Where to get a $4K personal loan

It’s possible to get a $4,000 loan within the same business day depending on the lender and your credit profile

Our goal here at Credible Operations, Inc., NMLS Number 1681276, referred to as "Credible" below, is to give you the tools and confidence you need to improve your finances. Although we do promote products from our partner lenders who compensate us for our services, all opinions are our own.

Need to borrow a $4K personal loan? Find out what you need to look for, including the types of lenders offering these loans. (Shutterstock)

If you need to take out a $4K personal loan for an emergency expense or large purchase, it may be difficult to find a lender to loan you this small amount — but it’s possible. You’ll need to look for lenders who offer lower loan amounts and make sure your credit score fits within their requirements to increase your chances of getting approved.

Where to get a $4K personal loan

You may be able to get a personal loan through many different kinds of lenders — online lenders, banks and credit unions. Each will have its own qualifications, including credit score and debt-to-income ratio.

Before you decide on a personal loan, it’s a good idea to shop around for the lowest rate available to you. Credible makes it easy to see personal loan rates from multiple lenders.

Online lenders

Compared to more traditional financial institutions, many online lenders offer lower minimum loan amounts. You can submit an application online and receive funding for your loan within a few business days, or even sooner in some cases. Online lenders typically offer lower interest rates since they don’t usually have the large overhead cost of maintaining physical branches.

It’s best to shop around because online lenders have different eligibility requirements. Online lenders generally work with borrowers across the credit spectrum, from those with excellent credit to bad credit. Others may consider additional factors when deciding whether to lend you money, such as your income and employment status. 

Another upside is that many online lenders allow you to prequalify for a personal loan. Meaning, you can see your potential loan rate and term before you submit a full application. The prequalification process won’t affect your credit score since it’s a soft credit check — this allows you to shop around and compare multiple lenders before you make your decision. 

Banks

Banks may offer loans as low as $4,000, though most generally have higher minimum borrowing amounts. If you do find a bank that offers a $4K loan, keep in mind that application and funding times may be slightly longer compared to online lenders. You’ll also most likely need good-to-excellent credit to be approved for a personal loan. 

However, if you have an existing relationship with a bank, you may find it easier to be approved for a loan (even if it’s for a low amount). In fact, some banks may even require you to be a current customer — this typically means you have a current checking or savings account — to apply for a loan.

Banks may allow you to submit an application online, especially if you’re an existing customer. New customers may need to apply in person at a local branch. 

Credit unions

Taking out a personal loan from a credit union will most likely require you to become a member before you submit your application. 

Since credit unions are not-for-profit institutions that serve their members, they may have less stringent borrowing requirements and could offer lower interest rates compared to a traditional bank. Credit unions are also more likely to approve smaller loan amounts. 

What credit score do you need for a $4,000 loan?

In general, you’ll need a fair-to-good credit score to qualify for a $4,000 loan, which typically means a score of 580 or higher. Some lenders work with borrowers with lower credit scores, though you’ll most likely pay a higher interest rate to borrow money in this situation. 

Aside from credit scores, lenders also consider other factors like your income and debt-to-income ratio. This is a comparison of your monthly income and debt payments that lenders use to gauge whether you can handle monthly payments. 

Can you get a $4,000 loan with bad credit?

Yes, it’s possible to get a $4K personal loan with bad credit. Some lenders specifically work with borrowers who have poor credit or those who have limited credit history. 

However, your credit score is one of the major factors lenders consider when it comes to qualifying you for a personal loan. Typically, the higher your score, the more likely you’ll be approved for a loan with the lowest interest rates.

You’ll probably receive higher interest rates if you have bad credit, and you might not have as many loan options as a borrower with good credit

What is the monthly payment on a $4K loan?

Several factors affect how much your monthly payment will be, such as your interest rate and repayment term. You’ll likely pay more each month if your interest rate is higher. 

For example, if you have a 750 credit score and qualify for a $4,000 personal loan with a three-year term and a 9.45% APR, your monthly payment would be $128 and you’d pay a total of $609 in interest.

However, if you have a lower score of 600 and qualify for the same three-year personal loan with an APR of 24.97%, your monthly payment would go up to $159. It may not seem like a big deal to pay an additional $31 per month. But you’ll end up paying $1,723 in interest over the life of the loan with the higher rate — that’s $1,114 more in total interest than the personal loan with the lower rate. 

You can estimate how much you’ll likely pay each month with Credible’s personal loan calculator

Comparing $4K personal loan lenders

It’s important to compare multiple lenders when you’re looking for a personal loan so you can find the best rates and terms for your financial situation. 

When comparing lenders, consider the following factors:

  • Loan amount: Lenders usually stipulate minimum loan amounts, which may be higher or lower than $4,000.
  • Repayment term: A longer repayment period means lower monthly payments and more time to repay your loan. You’ll most likely pay more in interest than you would with a shorter loan term.
  • Interest rate: The higher the interest rate, the more you’ll have to pay to borrow money.
  • Fees: Some lenders charge fees to borrow money, such as origination or application fees. There may also be late fees if you miss a due date.
  • Funding time: Lenders may have longer or shorter funding times depending on the method of payment or the time it’ll take to finalize the loan.

How to apply for a $4,000 personal loan

Here’s what to do if you’re ready to apply for a $4,000 personal loan:

  • Check your credit. Knowing where your credit stands before applying for a $4,000 loan can give you a good idea of what rates you may qualify for. That way, if your credit score is too low, you can take the necessary steps to improve it before applying. To request a free copy of your credit report weekly from the three main credit bureaus until the end of 2023, visit AnnualCreditReport.com. Make sure to dispute any errors you find, since this could help you improve your credit score. You can use insights from your credit report to see other ways you can improve your credit, such as lowering your credit utilization.
  • Shop around and compare multiple lenders. Comparing different loan options will help you select one that offers the best rates and terms for your needs. Look at any fees a lender charges and factor that into the cost of your personal loan. Many online lenders allow you to check your rate and term without affecting your credit score.
  • Select a lender and fill out an application. Once you’ve selected a lender, it’s time to complete the application process. Follow the lender’s instructions and submit any necessary documentation, such as proof of income and tax returns. It could take anywhere from a few hours to several business days to receive a loan decision, depending on the lender.
  • Sign the loan agreement. If the lender approves your loan application, the lender will request your bank account information to deposit your loan funds. You’ll also need to sign for your loan to receive the money. Depending on the method of payment and lender, this could take a few business days to a week.

Personal loan FAQs

Here are answers to some commonly asked questions asked about personal loans. 

How fast can you get a small personal loan?

How fast you can get a personal loan depends on the lender you choose. For example, online lenders are typically the fastest option since many offer approvals within minutes. Some even offer funding on the same or next business day you apply. Banks and credit unions can typically fund a loan within one to seven business days, depending on how quickly they can process the loan transaction.

What can you use a personal loan for?

You can use a personal loan for almost anything, such as paying medical bills, funding home improvement projects or consolidating high-interest credit card debt. Some lenders may impose restrictions, though. For example, you typically can’t use personal loan funds to pay for business or education expenses. 

What are the requirements for a personal loan?

Personal loan qualification requirements vary depending on the lender. In general, you’ll need to meet a lender’s minimum credit score and income requirements. You’ll most likely need to have an established credit history and some form of steady income. 

How do personal loans compare to credit cards?

Personal loans generally come with lower interest rates compared to credit cards. One of the main differences is that personal loans are closed-end loans—you’re only allowed to borrow a lump sum of cash upfront and then repay it in fixed monthly installments. Credit cards are a form of revolving credit, where you can keep borrowing up to your credit limit as long as you continue to pay down your balance.