How To Get a $5000 Personal Loan

You can get a $5000 personal loan through lenders who offer same-day funding, flexible loan options, debt consolidation, or low credit score small loans. Alternatively, there are ways to earn free easy cash through some cash making apps.

Getting a $5,000 loan fast can help with everything from emergency expenses or debt consolidation to adoption expenses, in-vitro fertilization (IVF) treatments, moving, weddings and so much more. They give you the cash you need when you need it. Getting a $5,000 loan could provide the cash you need. Find the best lenders here. 

Quick Look: Best Lenders for a $5,000 Loan

• Best for Same-day Funding: LightStream
• Best for Small Loans: PenFed Credit Union
• Best for Flexible Loan Options: SoFi Technologies Inc.
• Best for Debt Consolidation: Discover 
• Best for Low Credit Scores: Upstart

Best $5,000 Personal Loan Lenders

The best lenders for $5,000 loans offer low fees, fast approval and competitive interest rates. Whether you need a personal loan to pay off a credit card or a loan for bad credit, the lenders below can help. Find the best personal loans to get the cash you need this year. 

1. Best for Same-day Funding: LightStream

LightStream is the online lending arm of Truist Bank. It offers low-interest personal loans with flexible terms for borrowers with good credit. LightStream provides a variety of personal loan products and offers some of the lowest annual percentage rates (APRs). It also gives you a discount when you sign up for autopay.  

If you apply on a banking business day, you could get the funds the same day. To get funds the same day, you will first need confirmation of loan approval. Then, you can electronically sign and verify your direct deposit bank account information before 2:30 p.m. EST. 

2. Best for Small Loans: PenFed Credit Union

PenFed is a federal credit union that offers membership to the general public. As with other credit unions, PenFed offers excellent interest rates, with APR from 7.99% to 17.99%. You will need to sign up for a PenFed membership and keep $5 in a qualified savings account to apply for a loan.

PenFed offers personal loans for as little as $600, but could also get a loan for up to $5,000 or more, with terms running from one to five years. The biggest disadvantage of PenFed is that it pays via a check. If you don't live near a PenFed location, you might have to pay for overnight shipping to get a check the next day. 

3. Best for Flexible Loan Options: SoFi

SoFi offers personal loans up to $100,000, but if you need less, there's no reason to take that much. Because of larger loan options, SoFi is good for refinancing high-interest credit card debt. With an APR of 8.99% to 29.49%, it offers some of the best interest rates if you have good to excellent credit. You can get a 0.25% discount on your APR when you sign up for autopay.

SoFi offers a simple signup and application process, plus an excellent app to manage payments and check your loan balance. With SoFi you can choose between variable or fixed APR. 

Another unique feature of SoFi is the option to pause payments if you lose your job. You can take the option to make interest-only payments while you look for new employment. 

4. Best for Debt Consolidation: Discover 

Discover is a major bank with excellent personal loan offerings. You can receive your money as early as the next business day if there aren't any issues with your application. 

Even if you submit on the weekend or need to correct loan info, your funds should take no longer than a week to reach you. There are no origination fees. 

If you are planning to consolidate debt, Discover can pay your creditors directly. You can link the credit card accounts after you get loan approval and Discover will send the money directly. Then, any remaining loan amount will be deposited directly into your preferred bank account.

5. Best for Low Credit Scores: Upstart

Upstart is a company that aims to help people with low credit scores or no credit history. It looks at factors beyond your credit score like education, employment and work experience. If you don’t have sufficient credit, you can apply with a co-applicant and still receive a lower interest rate. Upstart will perform a soft credit check and give you an APR estimate without affecting your credit score. 

Upstart offers three-year or five-year loans for $1,000 to $50,000. You'll usually get the money the next business day if you accept the loan before 5 p.m. EST on a weekday. 

What Are the Requirements for a $5,000 Personal Loan?

Each lender has its own eligibility requirements, so even if you do not meet the criteria below, you may be able to find a lender willing to offer you a personal loan. Lenders generally look for stable income, a good credit score and a low debt-to-income ratio. But some lenders specialize in offering loans to borrowers with low or no credit scores or those with lower income. Below is the main criteria lenders look for. 

• Income: Lenders will look for stable income or increasing income over the previous one to two years before loan application. They may ask for proof of employment or income such as your bank statements, W-2s and tax returns to verify that you can repay the loan.
• Credit score: A higher credit score can mean you can qualify for lower interest rates, but even borrowers with low credit scores could qualify.  
• Debt-to-income (DTI) ratio: Lenders prefer borrowers with a debt-to-income ratio of 30% to a maximum of 43%. If the ratio of your total income to total debt is lower than 40%, you'll increase your chances of loan approval. 

How to Get a $5,000 Loan

The steps to get a $5,000 personal loan are similar to any other loan. You can apply online or at a bank in person. Here are the steps:

Prepare basic information

The lender may ask for your W2s, paystubs, Social Security number, government-issued ID and information on total debt and expenses.

Apply for prequalification

Many lenders offer prequalification without a hard credit check, which can confirm how much you can get. 

Submit final loan application

After prequalification, you can submit the final loan. You should hear from the lender within three to four days, and some lenders offer same-day or next-day approval.

Get loan approval

The lender will perform a hard credit check and give you the terms and interest rates. 

What Is the Monthly Payment on a $5,000 Loan?

A $5,000 personal loan isn't free. You will pay significantly in interest, sometimes nearly as much as you'd pay for the APR on a credit card. The monthly payment on a $5,000 personal loan depends on the interest rate and repayment terms. For example, if you have a $5,000 personal loan with a three-year repayment term and a 10% interest rate, your monthly payment will be $161. If you spread the same loan out over five years, your monthly payment will be $106 each month. However, on the three-year option, you'll pay $808.09 in interest (about 16% of the total loan amount), while on the five-year option, you'll pay $1,374.11 in interest or over 27% of the total loan amount. 

Here is a breakdown of monthly payments and borrowing costs on a $5,000 loan, with average monthly payments by credit score range:

Average monthly payment on $5,000 Loan

Alternatives to a $5,000 Personal Loan

Alternatives to getting a $5,000 loan include:

• Dipping into savings: If you have savings, you can consider using it for your short-term needs. If you borrow from retirement savings, consider making a plan of repayment to your savings similar to repaying a loan. 
• Borrowing from friends: If you need the funds for a short-term need, consider borrowing from family or friends. 
• Getting a side hustle: While a side hustle is unlikely to give you $5,000 as quickly as a personal loan, it can help you build greater financial stability long term by creating an additional income stream. 
• Get a 0% APR credit card: If you are approved for a credit card with a 0% APR offer, you could make charges interest-free for 12 to 18 months. If you believe you can pay back the charges before the interest is due, this is a low-cost option to borrow money. Avoid maxing out the credit card; ideally, don't spend more than 30% of your available credit. 

Should You Take Out a $5,000 Personal Loan?

With the lenders above, $5,000 loans can give you greater flexibility in your repayment options so you can take it out even if you think you'll be able to repay the loan sooner. If you earn an extra $5,000, you could repay the full amount penalty-free.  Learn more about the benefits of taking a personal loan or how to read your credit report. Discover what affects your credit score and the steps you can take to improve your credit score before applying. Or, find ways to make $5,000 fast.

Frequently Asked Questions