Last Updated: Aug 28, 2024
Taking out a $2,000 personal loan can be a significant financial decision. It can help borrowers bridge the gap between pay periods, cover medical expenses, take care of a home project or even fund a car repair.
While a $2,000 personal loan is relatively easy to get, interest rates and fees vary widely depending on your credit history and personal finances.
We at the MarketWatch Guides team did the research to help inform you on how to get a $2,000 personal loan and the best lenders to consider when applying.
The Best Lenders for a $2,000 Personal Loan
To help you find the best $2,000 loan, we reviewed a long list of lenders. We focused on interest rates, origination fees, customer experience, available loan terms and company reputation as well as other factors. Here’s a look at the top lenders for a $2,000 personal loan.
- PenFed: Our top pick
- Upstart: Best for bad credit
- U.S. Bank: Best for bank switchers
- Upgrade: Best discounts
- LendingPoint
- Prosper
- TD Bank
PenFed Credit Union
Best for Small Loans
4.3
Affordability: 35/35
Loan Features: 24/35
Customer Experience: 17/20
Company Reputation: 10/10
Interest Rate (APR)7.99% to 17.99%Term Options12 months to 60 monthsLoan Size Offered$600 to $50k
PenFed Overview
While PenFed, or Pentagon Federal Credit Union, is focused on military and Department of Defense households, anyone can join, even without an affiliation or history with the armed services. If you’re not connected with the military, you can pay a small fee to join the nonprofit National Military Family Organization and thus become eligible.
Once you’re signed up as a member, you can take advantage of a suite of products, including banking, personal loans, credit cards, mortgages and more.
PenFed also made our list for the best savings accounts.
Pros & Cons
Pros Personal loans start at a 7.99% annual percentage rate (APR) for applicants with the best credit No origination or prepayment fees Borrow up to $50,000 Check your rate without impacting your credit score Cons Membership is required to open a loan account No same-day funding when approved for a personal loan
PenFed Eligibility Requirements
To receive a personal loan from PenFed, you must first sign up to be a PenFed member. Any adult legally residing in the U.S. can join. PenFed doesn’t publish its credit requirements, but new loans are subject to a credit review, income verification and identity verification. If PenFed doesn’t approve you for a loan or gives you a high rate, you can apply again with a co-borrower, which may help you get a lower interest rate.
Upstart
Best for Bad Credit
4.0
Affordability: 28/35
Loan Features: 25/35
Customer Experience: 17/20
Company Reputation: 10/10
Interest Rate (APR) 7.80% to 35.99%
Upstart Overview
Upstart is an online lender offering personal loans and auto refinance loans. Upstart may offer you a loan even if you have poor credit, generally a score below 580. Of course, if you have a low credit score, you won’t get the best interest rates Upstart has to offer. Upstart works with many different banks behind the scenes to fund its loans.
Pros & Cons
Pros Borrow from $1,000 to $50,000 with a personal loan No prepayment penalties if you pay off your loan early Get your rate and terms without affecting your credit score Cons Origination fees apply Only three- and five-year terms are offered No same-day funding
Upstart Eligibility Requirements
Upstart looks beyond your credit score when approving personal loans and considers nontraditional factors, such as your education and work experience. Some lenders on the Upstart platform will lend you funds if you have bad credit or even no credit. Upstart usually sends you the funds the next business day after approval. Check out our list of the best loans for bad credit of 2024, but if you have better credit, check out our list of the best fair credit loans of 2024.
U.S. Bank
Best for Bank Switchers
4.0
Affordability: 34/35
Loan Features: 28/35
Customer Experience: 12/20
Company Reputation: 5/10
Interest Rate (APR)8.74% to 24.99%Term Options12 months to 60 months (for non-customers)Size Offered$1k to $50k
U.S. Bank Overview
U.S. Bank is one of the biggest banks in the United States, with a history going back to 1863. It operates branches in 26 states and has more than 2,000 branches. This extensive branch network enables you to apply for a loan in person or online. The bank offers personal loans to customers and non-customers, though if you bank with U.S. Bank, you will be eligible for lower credit score requirements and higher potential limits.
Pros & Cons
Pros Borrow up to $25,000 if you’re not a customer or $50,000 if you’re a customer No origination fees or prepayment penalties Terms from 12 to 84 months (up to 60 months for non-customers) Current customers can receive funds within hours if approved In-person applications are available. Cons Non-customers have higher credit score requirements Non-customers have lower borrowing limits Not the best rates around for borrowers with high credit scores, since U.S. Bank’s rates start at 8.74% as of this writing.
U.S. Bank Eligibility Requirements
If you are a current U.S. Bank customer, you can get approval for a loan with a credit score of at least 660. If you are not a customer, you’ll need a credit score of 720 for a personal loan. U.S. Bank also considers other factors, such as your income. U.S. Bank reserves its best interest rates for qualifying customers with a credit score of 800 or above. To see how you stack up, you can check your rate without impacting your credit score.
Upgrade
Best Discounts
3.9
Affordability: 22/35
Loan Features: 28/35
Customer Experience: 18/20
Company Reputation: 10/10
Interest Rate (APR)9.99% to 35.99%Term Options24 months to 84 monthsLoan Size Offered$1k to $50k
Upgrade Overview
Upgrade is an online financial company offering checking and savings accounts, credit cards and personal loans. In addition to unsecured loans, you can use your vehicle as collateral for a secured personal loan to obtain a lower interest rate.
Pros & Cons
Pros Borrow up to $50,000 with a personal loan Optionally secure your loan with your car for a lower interest rate No prepayment penalties if you pay off your loan early Add a co-applicant with better credit to improve your terms Cons Origination fees apply No same-day loan funding If you stop paying a secured loan, you could lose your collateral
Upgrade Eligibility Requirements
Upgrade does not publish its specific credit score requirements, but you can expect a review of your credit, income and other financial information for approval. If you aren’t approved for an unsecured loan, one option Upgrade offers customers is the ability to use your car as collateral. This secures the loan, giving Upgrade the right to take your vehicle if you fail to make your payments.
In addition to using collateral for a discount, you can save with automatic payments. If you open an Upgrade checking account when starting your personal loan application and you meet other requirements, you can earn a $200 bonus.
LendingPoint
Best for New Borrowers
4.2
Affordability: 28/35
Loan Features: 21/35
Customer Experience: 16/20
Company Reputation: 10/10
Loan Size Offered$2k to $36.5kInterest Rate (APR)7.99% to 35.99%Minimum Credit ScoreN/A
LendingPoint Overview
LendingPoint is an online personal and business loan lender. The biggest personal loan you can get from LendingPoint is smaller than the others we reviewed, but the lender offers up to a $36,500 loan if approved. As with most personal loans, you can check your rate without impacting your credit score.
Pros & Cons
Pros Borrow $2,000 to $36,500 with a LendingPoint personal loan Free credit monitoring in the LendingPoint mobile app Check your rate without a hard inquiry on your credit Cons Minimum annual income of $35,000 required for approval Bank account verification is required Interest rates are not the lowest among competitors
LendingPoint Eligibility Requirements
LendingPoint loans are available to adults in the U.S. with an annual income of at least $35,000. Specific credit score requirements are not publicly available. You must have a Social Security number and a verifiable bank account for approval. However, LendingPoint doesn’t lend to residents of Nevada or West Virginia.
Prosper
4.1
Affordability: 24/35
Loan Features: 22/35
Customer Experience: 18/20
Company Reputation: 10/10
Interest Rate (APR)6.99% to 35.99%Term Options24 months to 60 monthsLoan Size Offered$2k to $50k
Prosper Overview
Prosper is a peer-to-peer lending marketplace matching borrowers with investors. Instead of funding coming directly from a bank or other large lender, one or more investors may choose your loan as an investment. Prosper determines rates based on your credit history and other financial factors.
Pros & Cons
Pros Borrow $2,000 to $50,000 through a peer-to-peer marketplace No prepayment penalties if you pay your loan balance off early Choose your payoff period from two to five years No harm to your credit score when checking your interest rate Cons Origination fees apply Low-credit borrowers may have very high interest rates No same-day funding
Prosper Eligibility Requirements
Prosper requires you to have a minimum credit score of 640 to get a loan. If you have a lower score, adding a co-applicant may help you get approved. You can check your rate with a quick application that includes your credit information, income and regular expenses. You’ll choose your payment period if approved, which will influence your interest rate and total interest costs. Funds are not available the same day as approval but could be disbursed as soon as the next business day.
TD Bank
Best in the Mid-Atlantic
4.1
Affordability: 34/35
Loan Features: 21/35
Customer Experience: 14/20
Company Reputation: 5/10
Interest Rate (APR)8.99% to 23.99%Term Options36 months to 60 monthsLoan Size Offered$2k to $50k
TD Bank Overview
TD Bank is a large bank with roots in Canada. It’s one of the 10 largest banks in the U.S. and operates at more than 1,100 locations, primarily in the East. You can apply online or in person at a TD Bank location.
Pros & Cons
Pros Loans available for up to $50,000 Online or in-person customer service is available No origination fees or prepayment penalties Cons The shortest term is relatively long 36 months Rates are slightly higher than some competitors we reviewed 5% late fee up to a $10 maximum for late payments
TD Bank Eligibility Requirements
TD Bank doesn’t publish its minimum credit score guidelines. You can check if you qualify and get your rate using TD Bank’s preapproval process, which will not impact your credit score. Loans are available for $2,000 to $50,000 with terms of 36 to 60 months. It can take one to three days to receive funds upon approval.
>> Related: Learn more about the best personal loan lenders
Applying for a $2,000 Personal Loan
If you think a personal loan is a good choice for your financial needs, you can follow the steps below. Every lender is different, but you’ll generally need to complete an application and meet minimum financial requirements for approval.
- Shop around for the best $2,000 personal loan for your needs.
Begin by reviewing loan terms and criteria for multiple lenders. We’ve taken care of the hard part for you in this guide on how to get a $2,000 loan, but you may want to shop around and complete multiple preapproval applications to ensure you get the best rates and fees for your borrower profile.
- Complete the preapproval application to get your rate
Many personal loan companies offer the option to get preapproved for a loan without it impacting your credit score. With preapproval, you’ll know if you can move forward and will get a snapshot of your rates and payment terms.
- Finalize and complete your loan application if preapproved
If you like the offer in your preapproval, follow the steps to complete and sign the full application. You’ll likely need to supply proof of income, a photo ID and other personal information for approval. Expect the lender to review your full credit report before giving you final approval.
- Enter your bank account information for funding
If approved, the lender needs a way to send you funds. The fastest way to get the cash is usually with an electronic transfer. Enter your bank’s routing number and your account number where required. Then simply sit back and wait for the funds to land in your account.
- Confirm receipt and plan for your first monthly payment
Check every morning over the next few business days to see if your funds have arrived. Many lenders offer funds the next business day, though funding may take longer depending on your bank and the lender’s funding process. A few banks offer same-day funding in some scenarios.
After the excitement of seeing your bank account balance quickly grow, it can be easy to forget about making your first monthly payment. Consider signing up for automatic monthly payments so you never miss a due date. Some lenders even offer discounts if you opt for automatic payments. Further, missed payments can lead to fees and harm your credit score.
Requirements for a $2,000 Personal Loan
Every lender uses its own criteria when approving personal loans. While a $2,000 loan is usually more accessible than a $20,000 loan, the same details affect your approval and interest rate.
The most important factors lenders review include the following:
- Credit score: Your credit score and credit report are arguably the most important aspects of your loan application. Your credit history tells the lender your likelihood of missing payments or defaulting on your loan based on past borrowing behavior.
- Minimum income: Some lenders want a minimum income to show that you’re in a good position to repay the loan in the long term.
- Debt-to-income ratio: A debt-to-income (DTI) ratio measures your monthly payments across all credit and loan accounts compared to your income. Too much debt relative to your income can signal you’re a high-risk borrower.
>> Related: Learn more about personal loan requirements
Alternatives to a $2,000 Personal Loan
A $2,000 personal loan isn’t your only option, depending on your homeownership status and credit profile. Sometimes, you can find better rates or more flexibility by opting for one of the following alternatives to a $2,000 personal loan.
Home Equity Line of Credit
A home equity line of credit (HELOC) is a loan offered to eligible homeowners with equity built up in their homes. Like a credit card, you can draw on the loan at any time up to the account’s limit. That could be for $2,000 or for much more, depending on your loan’s terms.
With a HELOC, you’ll likely get a better interest rate than with an unsecured loan, as you use your home for collateral. However, if you don’t pay your loan as agreed, the lender can seize your home to recoup the outstanding balance. If you plan on paying the loan as agreed, which you should when taking out any loan, that’s not a significant risk. However, it’s important to always consider such a possibility when taking out any home loan.
Home Equity Loans
Home equity loans, sometimes called second mortgage loans, are another loan backed by your home. And just like a HELOC, your home is at risk if you stop paying the loan as agreed. But also like a HELOC, you can usually get a much lower interest rate with a home equity loan than an unsecured personal loan.
Home equity loans typically have a fixed monthly payment over the life of the loan, similar to the typical personal loan. If you make the minimum payment every month, you will pay off your loan in full with the final scheduled payment. Review our picks for the best home equity loan rates of 2024.
Peer-to-Peer Lending
Peer-to-peer (P2P) lending matches borrowers and lenders for loans. Lenders are often individuals like you who treat their lending as an investment. Some personal loans come from P2P lending platforms. Prosper, a lender in our list of the best lenders for $2,000 loans, is an example of a peer-to-peer lender. Keep in mind, though, that these loans typically come with origination fees, which make your loan more expensive.
Things To Consider When Applying for a Personal Loan
Personal loans are a useful financial tool to cover unplanned expenses. Ideally, it’s best to save enough of an emergency fund in a high-yield savings account that you won’t need to borrow when a $2,000 expense comes your way.
If you decide on a personal loan, finding the lowest costs, including the origination fee and interest rate, will come with the most favorable long-term costs. Loans with longer payoff terms usually require a higher interest rate as well as higher total costs than those with shorter terms. You can also get a debt consolidation loan if that fits your needs.
Only take out a loan if you’re confident in your ability to repay the loan as agreed. If you’re unsure about your financial footing, consider working with a trusted financial adviser, such as a certified financial planner (CFP). These professionals have rigorous training in helping clients manage their personal finances, investing, retirement and taxes.
>> Related: Learn more about the best personal loan rates
Frequently Asked Questions About $2,000 Personal Loans
You can choose your repayment period when signing up for a personal loan. Loan repayment periods often range from around one year to five or more years. You can generally pay off your loan early without prepayment penalties, but some lenders charge more if you pay off your loan before the scheduled payoff date.
Minimum credit score requirements vary by lender. You’ll often need a minimum credit score of around 600. However, some lenders specialize in loans to borrowers with bad credit or no credit at all. Others focus on borrowers with good to excellent credit scores.
The biggest personal loan you can get varies by lender as well as by your credit history and your income. In our personal loan reviews, we found a lender that offers personal loans as large as $200,000 if you have excellent credit.
The easiest type of loan to get approved for is usually a secured loan, such as a home loan or auto loan. However, personal circ*mstances and lenders vary widely, so your approval experience is likely to be unique.
Methodology: Our System for Ranking the Best Personal Loans
Our team put together a comprehensive100-point rating systemto evaluate the best personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability(35%): How expensive each company’s loans are to pay back
- Loan features(35%): The breadth of loan terms and features available to prospective customers
- Customer experience(20%): Ease of application, prequalification and customer service interactions
- Company reputation(10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions
Our top-rated lenders may not be the best fit for all borrowers. To learn more,read our full personal loans methodology.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
