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Get a $20,000 personal loan

Compare low rates for 20k loans available from big banks and online lenders.

Learn more about $20,000 loansRead guide

There are lenders that offer $20,000 personal loans — even if you have bad credit. Learn more about your options and calculate how much a loan might cost you.

Name Product Filter Values APR Min. Credit Score Loan amount
Best Egg personal loans
5.99% to 29.99%
600
$50,000
A prime online lending platform with multiple repayment methods.
SoFi personal loans
5.99% to 18.85%
680
$100,000
A highly-rated lender with competitive rates, high loan amounts and no fees.
Credible personal loans
2.49% to 35.99%
Fair to excellent credit
$100,000
Get personalized rates in minutes and then choose an offer from a selection of top online lenders.
Prosper personal loans
7.95% to 35.99%
640
$40,000
Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.
PenFed Credit Union personal loans
6.49% to 17.99%
650
$35,000
With over 80 years of lending experience, this credit union offers personal loans for a variety of expenses.
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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

$494.90

$29,694.20

$9,694.20

$20,000 loan repayment calculator

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$ in principaland $ in interest charged, with a total cost of $Compare personal loans now

How to get a $20,000 personal loan in 5 steps

Follow these steps to get a $20,000 loan.

Step 1: Research your options

There’s always the possibility of finding a provider close to home, so it may be worth checking with your local bank or credit union. But regardless if you have an established relationship with the lender, compare all of your options before signing the dotted line. An offer that may sound good at first could easily get surpassed by checking around just a little bit.

Step 2: Keep your limits in mind

Take time to go over your income and expenses and find out just how much you can afford in repayments every month. From there, you can find several terms that could work within that limit.

Step 3: Know your credit score

Your credit score significantly affects your interest rate for most personal loans. Knowing your score can help you formulate an idea of what will be available before you shop around.

Step 4: Assemble your paperwork

Check what’s required by the lender beforehand, if possible. At a minimum, you’ll want to have copies of your financial records, bank statements and government-issued ID like your driver’s license or passport.

Step 5: Apply for the loan

If you’ve found a lender on this page, click the green Go to site button to get started. You’ll be redirected to the lender’s application.

Your full name and contact information, the amount you want and the purpose of the loan are usually required fields in the application. Some lenders offer preapproval, while others may take longer to offer the final approval decision.

Step-by-step instructions to apply for a personal loan

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:

  • 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.

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.

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.

5 tips to get a competitive deal

Here’s what to keep in mind when you’re shopping for a $20,000 loan:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

Bonus tips

  • 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.

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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:

  • 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.

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

Read up on answers to common questions to learn more about getting a $20,000 personal loan.

Can I get a $20,000 loan with a 670 credit score?

It’s possible, though some lenders might be off limits like Marcus by Goldman Sachs — whose borrowers have an average credit score between 700 and 740. To see what’s available to you, you might want to consider starting your search with a loan connection service.

What if I have bad credit? Can I still get a $20,000 loan?

Improving your credit score before applying may not always be an option. You have ways to get a smaller-dollar loan up to $5,000 with bad credit. But you’ll often find that these loans come with much less favorable terms.

Not being able to repay a loan can have lasting negative consequences for your finances. It may be beneficial to consider other alternatives such as borrowing from friends and family, asking for a pay advance from your employer or looking into local social assistance programs.

What kinds of charges and fees should I expect?

Outside of the interest rate, you’ll want to look for processing fees, origination fees, prepayment penalties, late payment fees and nonsufficient funds fees. The first two may be negotiable if you ask.

When will I get the loan?

Receiving your funding can take anywhere from one business day to several weeks. If you’d like a more exact estimate, ask the lender you’re interested in working with about its processing times.

Can I use my loan for more than one purpose?

Absolutely. Say you’re going to get married and you need to pay for the wedding — the average amount borrowed nationally for one is around $11,000, according to LendingTree. You can do so with part of your $20,000 loan and use the other $9,000 to pay for the honeymoon.

You could also potentially pay for a move and a wedding if you and your partner are relocating.

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