Explore top lenders and learn tips to score a competitive deal.
Our top pick: Upgrade Personal Loans*
- Flexible loan options
- No prepayment penalty
- Quick turnaround
Our top pick: Upgrade Personal Loans*
- Min. Credit Score Required: 620
- Min. Loan Amount: $1,000
- Max. Loan Amount: $50,000
- APR: 7.99% to 35.89%
- Requirements: At least 18 years old, US citizen or permanent resident, verifiable bank account, valid email address
Compare 6 providers that offer $20,000 loans
| Provider | Good for … | APRs | |
|---|---|---|---|
| Credible | Quickly comparing offers from multiple lenders for borrowers with good to excellent credit. | 5.34% to 35.99% | |
| Even Financial | Quickly comparing multiple offers for all credit types. | 3.84% to 35.99% | |
| LendingClub | Applying for a loan with a cosigner. | 6.95% to 35.89% | |
| SoFi | Extra perks like career and financial advice and loyalty discounts. | Fixed rates: 5.99% to 16.24% Variable rates: 5.74% to 14.70% | |
| Monevo | Finding extra short- or extra long-term loans for all credit types. | 3.99% to 35.99% | |
| Marcus by Goldman Sachs | Consolidating high-interest debt. | 5.99% to 28.99%* |
How much are payments on a $20,000 loan?
How much you pay each month depends on two factors:
- Your APR. Your loan’s APR is an expression of how much you’ll pay in interest and fees over a year.
- Your loan term. Your loan term is how much time you have to repay your loan, in months or years.
Loans with a longer loan term tend to have lower monthly payments. But they allow more time for interest to add up, increasing how much your loan costs in the long run. Use our calculator to find out how much you might pay each month on a $20,000 loan at different rates and terms.
Costs example: $20,000 loan with a 5-year term at 16.8% APR
| Monthly payment | Total amount repaid | Total interest paid |
|---|---|---|
| $494.90 | $29,694.20 | $9,694.20 |
How to get a $20,000 personal loan in 5 steps
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- Your reason for borrowing. What you’re using the loan for is a good indicator for the lender of how reliable you are. If you plan on consolidating your debt, for example, lenders might view that as responsible borrowing and see you as a stronger applicant.
- Your credit score. Your credit score is often one of the most important factors in qualifying for a large loan with a competitive rate. You generally have more options if you have good to excellent credit.
- Your income and debts. Lenders tend to look at how much you can afford to pay month to month by looking at your debt-to-income ratio.
- Your employment status. Many lenders require you to be employed full time and some won’t work with self-employed applicants. There are still options if you’re unemployed, but they’re limited.
- Consider fixed or variable rates. Fixed rates give you predictable monthly repayments, but variable rates have the potential to be lower, depending on the economy.
- Check your credit score. Large loan amounts like $20,000 typically require a strong credit score, especially if you want affordable rates. Otherwise, consider providing collateral or adding a cosigner.
- Calculate your monthly expenses. Depending on your term and loan amount, you’ll likely need to have around $1,500 to $4,000 available per month after you pay your bills to qualify for a $20,000 loan.
- Consider a secured loan. Secured loans for things like the purchase of a car typically come with lower interest rates than unsecured loans because the lender is taking on less risk by requiring collateral. But if you’re looking into debt consolidation, collateral might not be an option.
- Bring on a cosigner. If you know someone with stronger personal finances, consider asking them to cosign your loan so you can get a more competitive deal.
- Income doesn’t just mean your salary. Give information about all sources of income, including any child support and investment returns when you apply for a loan.
- Go for the shortest term you can afford. Borrowing as little as you need at the shortest term can save you additional interest payments.
- Buy a used car. A $20,000 loan can go a long way for a newer used vehicle. If you’re looking to finally get rid of that old junker, you might be able to secure your new car with a personal loan.
- Start or grow your business. It can be difficult to secure a business loan when you’re just starting out, a personal loan for business might be easier to get and more affordable.
- Consolidate credit card debt. If you’re looking to get all of your open card balances in one loan, a personal loan might be a viable option. You can streamline your payments and potentially get a better interest rate.
The fine print.
Carefully read the terms and conditions of your loan agreement before you sign off on a $20,000 loan. Ask questions if you don’t understand anything, even about how to adjust the overall cost of your loan. Look for information about prepayment options, penalties, privacy policies and your rights as a borrower.
Additional costs.
Consider any fees or charges beyond the interest rate. Outside of upfront fees, keep an eye out for early repayment fees or late payment penalties. It may also be possible to negotiate some of the upfront charges, like loan origination fees — which typically run between $200 and $1,000 on a $20,000 loan.
Alternatives.
A $20,000 loan can set you back $10,000 in interest or more if you don’t get a favorable rate or terms. If it turns out that a personal loan isn’t the best fit for you, you have other borrowing options. Though they may not be able to provide the same amount, you can consider alternatives such as a home equity loan or line of credit, which might better fit your needs.
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Step-by-step instructions to apply for a personal loan
Compare more personal loan options
What factors do lenders consider when I apply?
Each lender has its own special sauce when it comes to evaluating applications. But most consider the following information when deciding what rate, term and loan amount you’re eligible for:
If you need $20,000 but not right away, consider taking steps to repair your credit first. It’s a process that doesn’t happen over night, but it can greatly improve your chances of qualifying and getting a fair rate. And if you notice your credit report has incorrect information listed on it, fixing those errors can also help your credit score.What if I have bad credit?
You may not be able to qualify for a $20,000 loan with most lenders if your credit isn’t the best. There are other lenders that specialize in loans for people who have bad credit in amounts ranging from a couple hundred dollars to $10,000.
5 tips to get a competitive deal
Here’s what to keep in mind when you’re shopping for a $20,000 loan:
Bonus tips
What can I use a $20,000 personal loan for?
From consolidating your credit card debt to starting a new business, you have quite a few ways to use a $20,000 personal loan:
3 factors to consider before you sign
Think a $20,000 personal loan is right for you? Consider these factors before signing the dotted line:
Bottom line
Comparing multiple lenders can be a time-consuming process. To make your decision easier, we’ve narrowed down the list for you to several legit online lenders offering competitive $20,000 personal loans. Or check out our personal loans guide to learn more about your options in general.
When comparing loans, don’t be afraid to ask questions or turn down your first offer if it’s not at the rate and terms you expect.
Frequently asked questions
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