Best Small Personal Loans in April 2026
Lenders that offer loans as small as $250 to $1,000
Best small personal loans
Read more about how we made our picks for the best small personal loans.
Taking a few minutes to check rates with your local credit union could help you save hundreds in interest and fees. By law, federal credit unions cannot charge APRs higher than 18.00%. Typically, credit unions also skip upfront fees that other lenders and traditional banks often charge.
Small personal loan lenders at a glance
How do small personal loans work?
Small personal loans generally range from $250 to $1,000 and typically have repayment terms within two or three years, making the fixed monthly payment extremely low. You can use a small loan to cover almost any expense.
How much will my monthly payments cost?
Your monthly payments will depend on your interest rate and how long you take out your loan.
Let’s say you plan to borrow $1,000 and pay it back over the course of three years. Here’s how much you can expect to pay on average based on your credit score:
| Credit score | Average APR | Monthly payment | Total repayment |
|---|---|---|---|
| Excellent credit | 11.77% | $33.10 | $1,191.76 |
| Very good credit | 14.74% | $34.54 | $1,243.37 |
| Good credit | 22.72% | $38.56 | $1,388.30 |
| Fair credit | 30.17% | $42.54 | $1,531.61 |
| Bad credit | 32.19% | $43.66 | $1,571.76 |
Borrowers with bad or fair credit may have trouble qualifying for an affordable loan. If lenders offer you rates over 36%, consider other ways to get funding.
Calculate your small personal loan payments
Pros and cons of small loans
Pros
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Fast funding
Many lenders will deposit money into your account within one business day. -
Predictable payments
Your loan payment will be the same amount, due at the same time every month. -
No collateral
Unsecured personal loans don’t require collateral, so you won’t risk losing an asset if you can’t make payments. -
May accept cosigners
Some lenders let you apply with a cosigner, which can improve your chances of getting a loan.
Cons
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Some lenders don’t offer small loans
Only some reputable lenders offer loans at $1,000 or less. If you need to cover a smaller expense but can’t find a trustworthy lender with an affordable APR, consider other financing options. -
Potentially high APRs
If you have bad credit, you could get rates as high as 35.99%. High rates make loans an expensive way to borrow money. -
Approval depends on credit
Borrowers with bad credit might have a hard time getting approved for a personal loan at all. -
Fees
Upfront origination fees, prepayment penalties and late fees add to the cost of your small loan. Read your loan offers carefully to see if your lender charges fees.
When banks compete, you win
You’d shop around for flights. Why not your loan? LendingTree makes it easy. Fill out one form and get lenders from the country’s largest network to compete for your business.
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Pick a lender and sign your loan paperwork. You could see money in your account in as soon as 24 hours.
Where to get a small loan
Banks, credit unions and online lenders all offer small loans. Here’s what you need to know about the benefits and drawbacks of getting a loan from each.
Banks
Consider checking your rates with your bank while you shop around for your loan. It may take longer to get a personal loan from a bank compared with online lenders, but banks can be a good option if you appreciate in-person customer service or combining your borrowing with your banking.
Note that a bank may require that you visit a local branch in person to close on your loan.
Credit unions
To get a small personal loan from a credit union, you’ll typically need to become a member first. This sometimes requires a small fee or deposit. Check membership requirements before you apply, since some credit unions only cater to certain groups, such as people with military ties.
Credit unions also tend to offer smaller loan amounts than banks and online lenders. .
Federal credit unions charge a maximum APR of 18.00%, which is particularly good news if you’re having trouble finding lower rates elsewhere.
Online lenders
Online lenders offer flexibility to consumers who don’t want to become a bank customer or credit union member. Because online lenders let you apply for small personal loans online and you don’t have to become a member or create a bank account, online lenders often take less time to approve and fund your small personal loan.
Online loans typically start in the $1,000 to $2,000 range. If you’re looking for a smaller loan, you’ll have better luck with a credit union or with other financing options.
How to get a small personal loan with bad credit
Low credit scores make it harder to qualify for loans, but it’s not impossible. Here are a few ways you can improve your chances of getting a small loan if you have bad credit:
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Use collateral
Some lenders allow you to put up a valuable asset called collateral with a secured loan in exchange for lower eligibility requirements and potentially lower rates. These loans come with risk — you’ll lose your asset if you can’t pay back your loan. -
Apply with another person
A co-borrower or cosigner with a good credit score and income can help you qualify for a personal loan. Joint loans can be easier to get because lenders take on less risk when two people are on the hook for paying off the loan. -
Improve your credit before applying
In some cases, it may be best to wait to apply for a personal loan until you have a higher credit score. Improving your credit can help you qualify for a better interest rate and get cheaper loans that don’t charge fees.
Avoid predatory loans
Shady lenders take advantage of borrowers with bad credit by offering expensive loans that are easy to get but hard to pay off. Look out for these common red flags of a predatory loan:
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No credit checks
Getting a small loan with no credit check may sound too good to be true — and it can be. Reputable small loan companies will check your credit to make sure you can afford monthly payments. Lenders that don’t check your credit — like payday lenders — often charge high fees in exchange for easy qualification. -
Lack of transparency
If a lender isn’t upfront about fees and interest rates, walk away. Trustworthy lenders share fees and rates on their website or during the application process. Don’t sign any contracts until you understand the terms and how much your loan will cost. -
High interest rates
When comparing payday loans versus personal loans, payday loans can come with much higher interest rates (sometimes as high as 400%). Many borrowers take out more loans to pay off their original payday loan, trapping them in a cycle of debt. -
Short repayment periods
Predatory lenders sometimes offer only two to four weeks to repay a loan. This short repayment period can make it difficult or impossible to keep up with payments. Consider a reputable short-term personal loan instead.
Alternatives to small personal loans
If you’re in need of a little extra money, a small personal loan isn’t your only option. Here’s what you need to know about other ways to cover a small expense:
| What is it? | Pros | Cons | |
|---|---|---|---|
| 0% APR credit card | A credit card with a promotional interest-free period |
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| Buy now, pay later apps | Breaking up a purchase from a store into a few payments |
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| Cash advance credit card | Using your credit card to borrow money |
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| Loan from family or friends | Borrowing from a loved one |
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How we chose the best small personal loans
We reviewed more than 40 lenders and loan marketplaces that offer personal loans to determine the best small personal loans. To make our list, lenders must offer loans of $1,000 or less and have competitive APRs.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our systematic rating and review process, the best small personal loans come from Navy Federal Credit Union, First Tech Federal Credit Union, PenFed Credit Union, LendingClub, LendingPoint, Upgrade and Upstart.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Why trust LendingTree’s methodology?
Our writers and editors dig through the facts, contact lenders directly and even go through the application process ourselves if it helps better explain what you can expect. As a Certified Financial Education Instructor℠, I’m committed to breaking down complex financial details so people can make confident, informed decisions with their money.
Jessica’s experience in editing and financial education helps shape LendingTree articles that are clear, accurate and truly useful to readers. Her certification means our recommendations are built on a foundation of consumer-first financial knowledge — not just numbers.
Frequently asked questions
Small personal loans can range from $250 to $1,000. With especially small loans, it’s important to read the fine print to make sure your lender doesn’t charge high fees or expect repayment in a few weeks or months. These tactics are common with payday lenders.
When lenders check your credit to approve you for financing, the hard credit inquiry puts a small dent in your score. Your score will typically recover in a year, and the inquiry will only stay on your credit report for two years.
Small personal loans can also negatively impact your credit score if you fall behind on payments or default on a loan.
You can use a personal loan to build credit as you make on-time payments and eventually pay off the balance. Other ways you can improve your credit score include:
- Decreasing your DTI ratio
- Paying your bills on time
- Disputing errors on your credit report