Your Guide To Getting A $10,000 Loan

If you’re looking to take out a $10,000 loan, you may wonder what type of loan is most suitable. For some people, a personal loan is an ideal way to borrow $10,000.

Personal loans offer qualified borrowers quick access to funds and the flexibility to use these funds as needed. Whether you’re looking for $10,000 to consolidate debt, fund a home improvement project or pay for something else, a personal loan may be your best solution.

In this guide, we’ll walk through the process of getting a $10,000 personal loan and some considerations to be mindful of as you apply for and select a loan option.

Online lenders, banks and credit unions commonly offer personal loans. It’s best to explore different lenders and compare their offers before deciding where to apply for a personal loan. Spending time researching your options can help you choose the right personal loan for your situation.

The lender you use may affect how long it takes to receive your loan approval decision and loan terms.

Once you decide that taking out a $10,000 personal loan makes sense for you, follow the steps described below to secure a loan that meets your needs.

1. Check Your Credit Report

Checking your credit report before applying for a loan gives you a glimpse into the information lenders will use to assess your creditworthiness. You can get a free credit report from each of the three national credit reporting agencies weekly through the end of 2023 at AnnualCreditReport.com. You may spot errors on your report that lower your credit score and chances of loan approval or disqualify you from favorable terms.

Your credit score in particular, can provide insight into your chances of qualifying for different loans. It’s worth noting that loan applications tend to result in a hard inquiry into your credit, which may lower your score. Only applying for loans you think you’ll qualify for can reduce the number of hard pulls on your credit and minimize the hit your score takes.

Each lender has its own set of requirements for personal loans. These requirements also vary with the type of loan you apply for. For example, an unsecured personal loan requires a borrower to have a higher credit score than a secured personal loan where collateral is offered up. Additionally, your credit history helps lenders decide whether to approve your application, and it influences the interest rate, repayment terms and origination fees you’ll face.

2. Decide The Type Of Personal Loan To Apply For

With a clear picture of your financial situation in mind, you can choose the type of personal loan that makes the most sense for you. Keep in mind that a secured personal loan might be a good option if your credit score doesn’t meet the qualifications for an unsecured loan.

Aside from being available to those with a lower credit score, a secured personal loan can come with a lower interest rate. Secured loans present less risk to lenders because the lender can take possession of the asset you put up as collateral if you fail to repay the loan.

If you do qualify for an unsecured personal loan, you won’t need collateral, but you may end up paying a higher interest rate.

3. Gather Necessary Documentation

You’ll need to provide documentation to verify your identity and financial information when you apply for a personal loan. This documentation may include:

• Social Security number (SSN)
• Employer information
• Proof of income (tax forms, pay stubs, etc.)

If you’re self-employed, you can submit documents like profit-and-loss statements to verify your income and employment.

4. Apply For Prequalification

If you want to shop around for the best interest rate while limiting the number of hard inquiries on your credit, you may want to prequalify for a personal loan. For prequalification, lenders usually only perform a soft credit check, which won’t negatively impact your credit.

It’s a good idea to reach out to personal loan lenders for more information on their prequalification application process.

5. Compare Your Offers And Choose The Best Loan Terms For You

Getting prequalified by different lenders for a personal loan gives you the opportunity to evaluate a variety of offers. You can compare the terms you qualify for before committing to a loan. Look at repayment terms, annual percentage rates (APR) and other lender fees, like origination fees, late fees and prepayment penalties.

After choosing a loan, you could receive the money by the next business day. Some personal loan providers, including Rocket Loans^SM, even offer same-day funding in some instances.¹

Monthly payments on a $10,000 personal loan will vary depending on loan terms like your interest rate and repayment period. You can use our simple loan calculator to get an idea of how much your monthly loan payment may be.

For example, let’s say you take out a $10,000 personal loan with a 15% interest rate and a 36-month repayment term. According to our calculator, your monthly payment will be $346.65 and you’ll pay $2,479.52 in interest over the life of the loan.

With the same interest rate and a 60-month repayment term, our calculator estimates your monthly payment will decrease to $237.90, while the total interest you pay on the loan will increase to $4,273.96.

Below, we’ll answer some common questions borrowers have about taking out a personal loan for $10,000.

What credit score do I need for a $10,000 loan?

The credit score you need to take out a $10,000 personal loan, or loan of any loan amount, will often differ by lender. On average, you’ll need a credit score of around 650 to be approved for a good personal loan rate.

Borrowers with excellent credit tend to qualify for loans with the lowest rates and ideal terms.

Can I get a $10,000 loan with bad credit?

While poor credit can hurt your eligibility, some lenders offer personal loans specifically for borrowers with bad credit. Connect with different lenders to see the options available to those with a lower credit score.

A secured personal loan may be a good option to consider if you think your credit score hurts your chances of approval. Unsecured loans tend to be limited to borrowers with good credit since this type of loan is a higher risk for lenders. Using a co-signer can also help boost your likelihood of approval if you have a low credit score.

What is the average interest rate on a $10,000 personal loan?

On average, personal loan borrowers pay an interest rate in the 10% to 32% range, according to a June 2023 ConsumerAffairs report. Factors like your credit score influence the interest rate a lender offers you.

How long does it take to pay off a $10,000 loan?

The amount of time you’ll spend repaying your $10,000 loan depends on the terms of the loan. Personal loan repayment periods typically range from 2 to 7 years.

Like with any major financial decision, before taking out a $10,000 loan, you should reflect on your financial circumstances. Take your time comparing loan offers from various lenders to ensure you accept the loan with the most favorable terms for your situation.

If you’re ready to apply for a $10,000 personal loan, start an application online today with Rocket Loans.

¹Same Day Funding available for clients completing the loan process and signing the Promissory Note by 1:00PM ET on a business day. Also note, the ACH credit will be submitted to your bank the same business day. This may result in same day funding, but results may vary and your bank may have rules that limit our ability to credit your account. We are not responsible for delays which may occur due to incorrect routing number, account number, or errors of your financial institution.