How to get a $5,000 personal loan


If you need $5,000 to pay for medical expenses, home improvements an emergency or to consolidate high-interest debt, taking out a personal loan is one potential solution. Some lenders offer quick funding — in some cases, funds can be deposited into your bank account as soon as the same business day.

However, before you apply for a $5,000 personal loan, you should understand what you may need to qualify, where to get one and how to estimate your borrowing costs.

How to determine if you need a $5,000 loan

Before you take out a loan, your first step should be figuring out the reason you need to borrow money. Is it because you need to consolidate debt or cover an unexpected expense? Next, you should review your budget to see if you can afford monthly loan payments.

Borrowing only what you need can keep your borrowing costs down. Plus, it can help you avoid potential late fees and damage to your credit score.

That said, there are times when it might be beneficial to borrow more than you need. For instance, if you’re borrowing money for a home improvement project and don’t know the exact costs, taking out a larger amount could make sense.

Requirements to receive a personal loan

Here are some common personal loan requirements lenders consider:

  • Credit score and history: Lenders review your credit score and credit history to assess how likely you are to repay the loan. To qualify for a lender’s lowest rates, you’ll likely need good to excellent credit. If you have bad credit, a lender may charge you a high interest rate and fees or reject your loan application.
  • Debt-to-income (DTI) ratio: Your DTI ratio is a percentage of how much of your gross monthly income goes toward servicing debt each month. A high DTI ratio can indicate to a lender that you’re overextended financially and can’t afford to take on additional debt. You can lower your DTI ratio by taking these two things: boosting your income or paying down any debts.
  • Income: You’ll also have to prove to a lender you have enough steady income to repay the loan by providing financial information, such as your bank statements, W-2s and tax returns.
  • Proof of identity and address: You may have to provide at least one form of government-issued identification, such as your driver’s license, birth certificate, military ID, passport or Social Security card. Plus, a lender may ask for documents that confirm your address like a utility bill, lease agreement or mortgage statement.

Personal loan lenders that offer $5,000 loans

You can get a personal loan from a bank, credit union or online lender. Here are some financial institutions that offer loans for this amount:

Lender APR range Loan amount range Minimum credit score requirement
Best Egg 7.99% to 35.99% $2,000 to $50,000 600
Happy Money 5.99% to 24.99% (with autopay) $5,000 to $40,000 600
LightStream 6.99% – 21.49% (with autopay) $5,000 to $100,000 660
Upstart 5.60% to 35.99% $1,000 to $50,000 Not disclosed

Best Egg

Best Egg offers personal loans ranging from $2,000 to $50,000. You can choose a 3- or 4-year repayment term. If you need funds fast, this could be a good option since funds can be deposited in your account the next business day, if you’re approved. But a major con is that lender charges origination fees that range from 0.99 percent to 5.99 percent. If you choose a 4-year loan term, your origination fee will be a minimum of 4.99 percent.

Happy Money

If you want to consolidate high-interest debt, Happy Money may be worth considering. Happy Money offers personal loans with competitive interest rates through its partner lenders that range from $5,000 to $40,000 and can only be used for debt consolidation. You can choose a repayment term that ranges from two to five years.


LightStream offers personal loans with competitive interest rates, zero fees and a wide range of repayment terms. Depending on the type of loan you choose, you can borrow money for up to 7 years. If you’re approved, funds can be deposited in your bank account as soon as the same business day. A potential downside, however, is that you need several years of credit history to qualify.


If you have bad credit, Upstart could be a good fit since there’s no minimum credit score needed to qualify. Upstart offers a low minimum interest rate as of Sept 28, 2022, 5.60 percent to well-qualified applicants. However, a potential drawback is that Upstart charges origination fees, and they range from 0 percent to 10 percent.

Costs of a $5,000 personal loan in the long term

How much you’ll pay for a $5,000 loan depends mostly on your interest rate and repayment term. You can use our personal loan calculator to estimate your total borrowing costs.

Here are some examples of what your borrowing costs could look like for a three-year loan:

  • 3-year loan at 5%: $150 monthly payment; $5394.76 in total repayment costs
  • 3-year loan at 10%: $166 monthly payment; $5808.09 in total repayment costs
  • 3-year loan at 15%: $173 monthly payment; 6239.76 in total repayment costs

If you choose a longer repayment, it could lower your monthly payments. But doing so would increase the amount of interest you pay over the life of the loan.

For instance, here’s what your borrowing costs might look like for a 5-year loan:

  • 5-year loan at 5%: $94 monthly payment; 5661.37 in total repayment costs
  • 5-year loan at 10%: $106 monthly payment; $6374.11 in total repayment costs
  • 5-year loan at 15%: $119 monthly payment; $7136.98 in total repayment costs

Bottom line

You can use a $5,000 personal loan for almost any purpose, such as paying for a wedding, home improvements or consolidating debt. Before you take out a loan, review your finances to see if you can afford to make monthly payments. If you decide it’s a good move for you, compare your options from multiple lenders to find the best deal.


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