How to Get a $2,000 Personal Loan
Many personal loans range from $5,000 to $50,000, so a $2,000 loan is smaller than most. But that’s excellent news for your finances: Because you pay interest on the amount you borrow, you’ll pay less for a smaller-dollar loan.
Here’s how to get the best deal on a $2,000 personal loan, including the top lenders with the most competitive rates.
Table of Contents Skip to Section
What lenders offer personal loans for $2,000?
| Lender | Rates (APR) |
| Credible | 7.49% – 35.99% |
| Best Egg | 5.99% – 29.99% |
| Upgrade | 8.49% – 35.99% |
| Upstart | 7.8% – 35.99% |
Most lenders offer loans for specific amounts, often up to $50,000. It can be more challenging to qualify for higher loan amounts because those loans pose an extra risk to the lender. If you fail to repay the loan, the lender loses more money. Because a $2,000 personal loan is smaller than most, it might be easier to qualify.
When reviewing applications, lenders consider your credit score, payment history, income, and debt. Your credit score and borrowing history affect your annual percentage rate (APR), which is how much it costs to borrow money. A higher APR means you pay more. Most lenders offer an APR range, with the lowest rates reserved for the most qualified borrowers.
As you shop, compare offers from multiple lenders to find the best rate and terms. Comparing offers can also help you avoid predatory lenders with excessive interest rates and hidden fees. The following lenders offer the best rates and terms for a $2,000 personal loan.
Credible – Best marketplace
LendEDU rating: 5.0 out of 5
- Offers prequalified rates from multiple lenders.
- Enables comparison shopping through a single application.
- Provides dedicated support for personal loan seekers.
Credible distinguishes itself as a premier loan marketplace, offering unparalleled convenience for those looking to compare personal loan options. With its single-application feature, it simplifies the shopping process, saving borrowers time and ensuring they find the best possible rates.
The platform’s reputation for reliability makes it a go-to choice for individuals eager to explore a variety of personal loan avenues without the hassle of applying to each lender separately. Credible’s commitment to offering prequalified rates from a range of lenders via a single platform not only streamlines the selection process but also empowers borrowers with the information they need to make informed financial decisions.
Best Egg – Best for a secured loan
LendEDU rating: 4.8 out of 5
- Streamlined, straightforward application process.
- Competitive interest rates for eligible applicants.
- Offers secured loans at lower rates.
Best Egg provides a broad spectrum of loan products, with particular strength in secured loans. This option might appeal to borrowers looking for lower interest rates because secured loans tend to offer better terms.
Best Egg’s application process is simple and fast, allowing applicants to navigate the loan acquisition process with ease. The lender’s ability to offer competitive rates for qualified individuals makes it an attractive option for those with adequate collateral seeking to minimize their borrowing costs.
Upgrade – Best for fair credit
LendEDU rating: 4.9 out of 5
- Adheres to fair and transparent lending standards.
- Offers loans up to $50,000.
- Includes free credit monitoring and educational resources.
Upgrade is committed to fairness and transparency, making it a standout option for borrowers with fair credit—FICO scores in the 580 to 669 range. By providing access to significant loan amounts, Upgrade caters to a wide range of borrowing needs, from debt consolidation to major purchases.
The lender’s investment in borrower education, through free credit monitoring tools and resources, showcases its dedication to helping individuals improve their financial wellness. This approach not only benefits borrowers by offering substantial financial products but also educates them on managing their finances more effectively.
Upstart – Best for little to no credit
LendEDU rating: 4.8 out of 5
- Evaluates applicants based on education and employment history.
- Does not require a minimum credit score.
- Offers fast funding, sometimes within one business day.
Upstart is a reputable lender for those with limited credit history. It adopts a unique approach to evaluating loan applicants. By considering nontraditional factors such as education and employment history, Upstart broadens the horizons for individuals who may not meet the stringent credit score requirements of other lenders.
This innovative methodology provides a lifeline for borrowers who lack a robust credit history but demonstrate potential through other aspects of their professional and academic backgrounds. Upstart’s ability to provide quick funding further enhances its appeal.
How to get a $2,000 personal loan
Most lenders review a standard list of factors when determining eligibility for a loan. Here’s what most lenders consider:
- Credit history: Your credit report provides a snapshot of your history as a borrower and is one of the most important factors lenders consider. It includes your credit score, which rates your creditworthiness. Your credit history also includes your track record for making on-time payments and sticking to the terms.
- Income and employment: Lenders want to ensure you can afford the new loan payment each month. Your income helps determine how much additional debt you can handle. Your employment is another critical factor because lenders want to ensure you will continue earning your income throughout the repayment term.
It’s essential to understand the factors lenders consider before you apply so you have a chance to make changes to your finances that can increase the likelihood of approval.
Once you’re ready to apply, complete these steps.
- Prequalify and compare: Most lenders allow borrowers to prequalify for a loan and review loan offers with a soft credit pull, which does not lower your credit score. Find at least three lenders that seem like a good fit and prequalify with each. It typically takes less than 10 minutes. Comparing offers from multiple lenders helps ensure you’re getting a good deal.
- Select a lender: After reviewing the prequalification offers from the lenders, select the one with the best terms, rates, and fees. Once you select a lender, finalize the application and provide proof of identification and income.
- Review the offer: Lenders might take one to two business days to review applications and provide a finalized loan offer. Review the offer and ask questions if you have any. Then, sign the forms and submit the paperwork.
- Get your funds: After completing the forms, you can expect the loan funds in your bank account in one to three business days.
How to repay a $2,000 personal loan
Personal loans have fixed interest rates and consistent monthly payments, so you pay the same amount throughout the term. Consistent payments make it easier to budget and prepare for the expense. Plus, if you have extra money, you can put it toward the loan to pay it back faster.
Consider these strategies for faster loan repayment:
- Principal-only payments: If you can schedule extra payments at any point throughout the loan term, be sure the money goes toward the loan’s principal. Principal-only payments help lower your balance faster because interest is calculated based on how much you owe. Your regular monthly payments are a mixture of interest and principal.
- Lump-sum payments: Whether you get a bonus at work, a large tax refund, or birthday money, consider putting the funds toward your loan. Lump-sum payments can reduce your loan term by multiple months.
What are the payments on a $2,000 personal loan?
The payments for a $2,000 loan depend on the interest rate and term length. Both factors affect how much you pay each month. Lower interest rates help you save money on interest charges, and shorter repayment terms do the same.
Here are a few examples highlighting how the interest rate and term length influence your payment.
| Loan | Monthly payment | Total interest paid |
| $2,000 at 10% for 36 months | $64.53 | $323.24 |
| $2,000 at 13% for 36 months | $67.39 | $425.96 |
| $2,000 at 13% for 24 months | $95.08 | $282.01 |
As you can see, a shorter loan length means paying less in interest overall.
Pros and cons of a personal loan for $2,000
Consider the potential benefits and drawbacks of a $2,000 personal loan before applying.
Pros
-
Competitive rates
Personal loans offer competitive interest rates that are often much lower than the rates for credit cards.
-
Flexible spending
You can use personal loan funds for almost any expense, making them a solid choice for borrowers with unusual or unexpected costs.
-
Predictable payments
Personal loan payments stay the same throughout the loan term, making it easier to budget and plan.
Cons
-
Not a long-term solution
Personal loans are a short-term fix that can be helpful for one-time expenses, such as unexpected bills or debt consolidation. However, they’re not an ongoing solution for recurring expenses you can’t afford.
-
Extra fees
Some lenders charge origination fees that range from 1% to 10% of the loan amount. The lender usually subtracts the costs from the loan balance, meaning you get less money and pay more for it.
-
Must qualify
Most personal loans are unsecured, so you don’t need to provide collateral. Because of that, it can be harder to qualify for the loans.
Other ways to borrow $2,000
A personal loan can be helpful in some circumstances, but it’s not always the right fit. Here are alternatives to a $2,000 personal loan.
- Credit card: You might be able to pay for the expense with a credit card. Before charging the card, be sure you understand the interest rate and minimum payment requirements.
- Friends and family: You may be able to borrow money from friends or family. It might feel awkward to ask for a financial favor, but you could work together to establish a repayment plan.
- Pension-linked emergency savings account: The SECURE 2.0 Act of 2022 allows short-term savings accounts “to be established and maintained as part of an individual’s retirement savings plan, such as a 401(k) plan.” Employers can auto-enroll their employees, make employee contributions through payroll deductions, and make matching contributions to the linked retirement plans. Participating employees can withdraw funds without the penalties of drawing from retirement savings.
- Salary advance: Some employers offer salary advances up to a certain amount. If you need money to cover a one-time expense, ask your employer about options for a salary advance, including potential fees.
- Apply with a cosigner or co-borrower: Some lenders, such as Upgrade, allow borrowers to apply with a cosigner. Cosigners can’t access the funds but agree to repay the loan if you default. Co-borrowers can access the funds and are equally responsible for payments. A cosigner or co-borrower with solid credit can help you qualify for more competitive terms.
FAQ
What is the minimum credit score required to qualify for a $2,000 personal loan?
Every lender has its own criteria. Many require a minimum credit score of 580 to qualify for a $2,000 personal loan. However, Upstart states that its minimum score is 300—the lowest possible.
Can I apply for a personal loan if I’m self-employed or have irregular income?
Yes, you can apply for a personal loan even if you’re self-employed or have an irregular income. However, lenders will still need to see proof of consistent income to ensure you can pay back the loan.
How long does it take to receive the funds once I’m approved for a personal loan?
Once approved, you should see funds in your account within one to seven business days. The exact time frame depends on your lender and the method of disbursement.
Are there any restrictions on how I can use a personal loan?
Personal loans are known for their flexibility and can be used for almost any purpose. However, lenders might have certain restrictions, such as prohibiting their use for gambling, illegal activities, or investing.
What happens if I miss a payment on my personal loan?
Missing a payment on your loan can have significant consequences. It might harm your credit score, result in late fees, and put you at risk of defaulting.
Can I pay off my personal loan early, and are there any penalties for doing so?
In most cases, you can pay off your personal loan early. While prepayment penalties are rare, some lenders charge them, so verify this with your lender before making extra payments.
How do lenders determine the interest rate for a personal loan?
Several factors influence your personal loan’s interest rate, including your credit score, income stability, debt-to-income ratio, and the lender’s base rate.
Recap: Lenders offering $2,000 personal loans
| Lender | Rates (APR) |
| Credible | 7.49% – 35.99% |
| Best Egg | 5.99% – 29.99% |
| Upgrade | 8.49% – 35.99% |
| Upstart | 7.8% – 35.99% |
The post How to Get a $2,000 Personal Loan appeared first on LendEDU.