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:
- Minimum credit score requirement of 660 or above
- Minimum income requirement of $50,000/year
Pros:
- No origination fees
- Funding as soon as one business day on approved loans, although funding times can vary
- Competitive loan offers
- Allows co-signer
- Large personal loans available
- Flexible repayment periods up to 12 years
Cons:
- Strict qualification requirements
- No access to pre-qualify through the LightStream website (When applying directly, you can get pre-approved but not pre-qualified, therefore, you may be subject to a hard credit pull. To get pre-qualified with LightStream, check offers through Acorn Finance to see if you qualify.)
- No direct payment to creditors for debt consolidation loans
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
- Same or 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
Minimum qualifications:
- Minimum credit score requirement of 600 or above
- No minimum income requirement
Pros:
- Low threshold for credit score
- No minimum income requirement
- Flexibility to change payment dates
- Offers peer-to-peer lending
Cons:
- Long funding times
- Origination and late fees may apply
- No rate discount for autopay is available
- Restrictive repayment periods
- Funding may take about 5 business days
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.
