Best $5,000 Personal Loans For Good & Bad Credit: $5k Loans (2024)

How do $5,000 personal loans work?

Personal loans are installment loans. An overview of how they work is as follows.

Get prequalified to receive a loan offer
Accept offer
Submit documentation or information that may be requested during the underwriting process
Receive approval and funding
Repay funds in fixed monthly installments with interest over a predetermined period

With few spending restrictions, you can use a personal loan for one use or several uses. Yet another reason personal loans are so popular. For smaller amounts, such as $5,000, a personal loan can be even more attractive as it does not require collateral or a down payment.

When are $5,000 loans worth it?

When deciding if borrowing $5,000 is worth it, you will want to consider a few things.

What do you need to borrow the money for?
How will the payment impact your monthly budget?
What is the total loan cost?
What are other options if you don’t borrow the money?
How will the loan put you ahead?

These are just a few questions to ask yourself. Personal loans are often used for home improvements, medical expenses, cosmetic surgery, school expenses, and other things that can improve your life. Utilizing a $5,000 loan for a purpose that will put you ahead can make it easier to justify. What you qualify for can play a big role in determining if the loan is worth it or not. To check offers without commitment, pressure, or credit score impact, visit Acorn Finance.

Reviewing personalized offers can help you determine if a loan is worth it or not. Doing so can give you insight into what your monthly payment will be, what the total loan costs will be, and what you qualify for in general. With real information, you can make real decisions, based on real information.

List pros & cons of $5,000 loans:

Pros

Fixed monthly payments
Funding in as little as 1-2 business days (although funding times may vary)
Funded as a lump sum
Few spending restrictions
Marketplace of lenders to consider

Cons

Interest rates and fees
Risk of default
Credit score impact
Increase in project costs
Increases debt

Why choose Acorn Finance for comparing $5k loans?

Partnering with a trusted platform such as Acorn Finance can alleviate some of the stress associated with taking out a loan. At Acorn Finance, we work to streamline the process of checking personal loan offers with our safe and secure platform. At Acorn Finance, you can check rates in seconds with no credit score impact. Take advantage of our convenient portal with vetted and trusted top lending partners. With well-known names, you can expedite your way to finding the right $5,000 dollar personal loan.

Additionally, we eliminate the frustration of sifting through the internet, verifying lenders, and researching for hours. Whether you are ready to take out a loan today or just shopping around - you have everything to gain by checking offers at Acorn.

Plus, you can sign in and return to them at a later date if the offers are still available. Our lending partners can fund loans in as little as 1-2 business days, although funding times can vary, so when you’re ready to accept an offer, they are ready to help. Upon accepting the offer, you can complete the application and approval process with the lender of your choice.

We take the overwhelming process of shopping loan offers and bundle them up into a nutshell (no pun intended).

Pros and cons of lenders $5,000 Personal Loans:

LightStream

Best for home improvement loans

Minimum qualifications:

SoFi

Best for online personal loans for borrowers with next-to-perfect credit

Minimum qualifications:

Minimum credit score requirement of 680 or above
Minimum income requirement of $50,000/year

Pros:

Flexible loan amounts and repayment terms
No origination fees
Competitive interest rates
Funding as soon as one business day on approved loans, although funding times can vary
Allows cosigner applications
Unemployment protection available

Cons:

High credit score requirement
Approvals may take 3 days or more

Best Egg

Best for personal loans for borrowers with fair credit

Minimum qualifications:

Minimum credit score requirement of 600 or above
No minimum income requirement

Pros:

Fair credit scores can qualify
No minimum income requirement
Next day funding available, although funding times can vary

Cons:

Not available in some states
Origination fees between 0.99% and 6.99%
Higher APRs

Prosper

Best for peer-to-peer loans

Upgrade

Best for bad credit personal loans

Minimum qualifications:

Minimum credit score requirement of 560 or above
No minimum income requirement

Pros:

Low credit score requirement
No early payoff penalty
Joint applications allowed
Funding as soon as one business day on approved loans, although funding times can vary

Cons:

Origination fees between 2.9% to 8%
Higher APRs, especially for subprime borrowers

Axos Bank

Best for refinancing existing personal loan

Minimum qualifications:

Minimum credit score requirement of 700 or above
Minimum income requirement $48,000/year

Pros:

Low origination fees
Mobile app to manage loans
Fast funding times
Funding as soon as one business day on approved loans, although funding times can vary

Cons:

High credit score requirement
Origination fee up to 2%

OneMain Financial

Best for borrowers with less-than-perfect credit who need fast funding for a personal loan

Minimum qualifications:

Minimum credit score requirement of 600 or above
Minimum income requirement $7,200/year

Pros:

Low credit score requirement
Offers secured loan option
Low income requirement
Flexibility to choose your payment date
Fast funding times

Cons:

High interest compared to similar lenders
Origination fee between 1% – 10% (or flat fee up to $500 depending on state)

LendingPoint

Best for fair credit personal loans with fast funding

Minimum qualifications:

Minimum credit score requirement of 600 or above
Minimum income requirement $30,000/year

Pros:

Low origination fees
Relaxed credit score and income requirements
Same or next-day funding is available, although funding times can vary

Cons:

No joint applications
High loan costs
Short repayment periods

Check rates from these top lenders and more at Acorn Finance!

Lenders outside the Acorn network to consider:

Lending USA

LendingUSA is best for one-time purchases or uses, such as cosmetic surgery financing, pet financing, funeral financing, and more. LendingUSA offers loans for a variety of industries. Loans can be obtained through the LendingUSA website or through a merchant partner that refers to LendingUSA. Additionally, if you pay your loan off within six months, no interest will be charged to the principal. With fast approval decisions and loans as small as $1,000 available, Lending USA is another lender to consider for a personal loan.

Reprise Financial

Reprise Financial can help borrowers find personal loan offers that meet their needs. In order to help borrowers obtain funds quickly, Reprise works to streamline the personal loan process. With customized payment options and fixed rates, check personal loan offers at Reprise Financial.

Universal Credit

For borrowers with bad credit, Universal Credit may be your golden ticket to the funds you need. With a minimum credit score requirement of only 560, Universal Credit is a top choice for subprime borrowers. While loan costs may be higher, they usually are when it comes to borrowing money with bad credit.