Oh, look. Your car. It’s on fire.
Wait. That’s not good. Put it out!! PUT IT OUT!
Once the fire department is gone, you see the issue: Wiring went nuts. You get it dragged to the mechanic and realize immediately that you have a problem: You now have a $1000 bill and no credit cards that you can use. What can you do?
It is an excellent time to get the answer to a very important question: How to get a $1000 loan? Fortunately, there are a lot of options.
How to Get a $1000 Loan Table of Contents
Types of $1000 Loans
It may seem like a small fortune, but the truth is that $1000 really isn’t all that much money. Since it’s a relatively low amount, there are plenty of ways you can get it. These include:
Short-term loans are one of the most popular ways how to get a $1000 loan. They are usually offered by a bank or credit union. They are also known as small personal loans, and if you are wondering how to get a $1000 loan, they are an excellent place to start. These loans probably won’t cost you a ton in fees, but since they are so low, a bank may jack up the interest rate to cover their costs. These loans can have an interest rate of anywhere from 4-36%, depending on your credit score.
A credit card may be the most convenient when figuring out how to get a $1000 loan. This comes in two forms: You can put $1000 on the card or get a cash advance of $1000 if your card offers cash advances as an option. Like anything else related to a credit card, your interest rate and fees will vary depending on your credit score.
Payday loans are hugely predatory and should absolutely only be used as a method of last resort. These loans can often be used as advances against your paycheck. The problem? They charge exceptionally high interest rates and make it very, very easy to roll one loan into the next — at an even higher interest rate. Avoid at all costs. Seriously. If you need it that badly, beg that creepy Uncle Bill of yours for the money first.
All hail the internet! There is no shortage of online lenders that will enable you to get the money you need, particularly if you are really in a pinch. The internet makes comparison shopping easier, so you won’t have a problem comparing one lender against another. You’ll still get hit with interest rates and fees, but at least you can find a good deal for your situation.
What You Can Use a $1000 Loan For
A $1000 loan may not seem like a lot, but 1,000 large is a lot of money out of your pocket. You can use that loan for:
As if you needed even more incentive not to break yourself than the pain that it can cause, medical bills can be expensive, and they are one of the leading forms of bankruptcy in the United States. A small loan can help you pay off your bills.
See above. Stop setting your damn car on fire.
Emergency or Unexpected Expense
Lots of emergency expenses can arise that can cost you $1000. In this instance, taking out a loan may be the best option to help you pay it back, particularly if you don’t have a credit card to pay the loan balance.
Does My Credit Score & Credit Report Affect My Ability To Get a $1000 Loan?
It absolutely does.
A good credit score means you are less of a risk for a bank or lender. Bad credit score? You may not be able to get this loan at all, or you may be charged a massive interest rate, like 35%. Some states limit how high these interest rates can go, but it can still hit you pretty hard.
How To Get a $1000 Loan With Bad Credit
Your options are limited here, but they exist. They include:
- Finding a specific lender that caters to people with bad credit scores. This is where those monstrously high-interest rates come in.
- Check out your credit card: You may be able to spend $1000, then pay it back as you are able. Again, make sure you keep an eye on the interest rate, which can also be very high.
Top Online Lenders for a $1000 Loan
Good news: Since $1000 isn’t a lot, and since you don’t need the greatest credit in the world to get it, there are a TON of lenders for a $1000 personal loan. These are all reputable financial organizations, not to be confused with payday loans. They include:
- Upstart Personal Loans, which will give you a small personal loan of up to $50,000. The interest rate is between 3.09% and 35.99%, and you have to have a credit score of at least 600.
- PenFed Loans, which will give you a loan of between $600 and $35,000. There’s no origination fee here, but late fees can run you $29.
- LendingClub, which will give you loans for as low as $1000 at interest rates as low as 7.04%.
What Are Payday Loans & Payday Lenders?
We cannot stress this enough: Payday loans are absolutely out to screw you. Avoid at all costs.
A payday loan is a short-term, high-interest loan, usually of a low amount and often structured as an advance on your paycheck (hence the name). The interest rate usually travels into the 30% range, and you have a very, very short time to pay it back.
What’s the issue? The interest rate is so high — and the period to pay the loan balance so low — that it can be way too easy to fail to pay the loan back. Don’t worry, though, since the payday lender has your best interests at heart…yeah, we can’t even say that with a straight face. They “let” you roll your loan into another loan, which means that you just keep sliding deeper and deeper into debt. Oh, they are also known throughout the country for engaging in a slew of predatory practices and targeting vulnerable populations.
What Are the Average Interest Rates on a $1000 Loan?
When it comes to how to get a $1000 loan, you need to pay attention to the interest rate. Unfortunately, there’s no “average” here. The truth is that it depends on your credit score.
However, there is a range of possible interest rates. Interest rates vary between 5% and 36%. The better your credit score, the lower your interest rate. As such, when considering how to get a $1000 loan, you have to do your research about the interest rates — there is no standard answer.
How Long Will It Take To Get a $1000 Loan?
It depends on the lender, but typically, not long. If you call your bank and walk in, you should be able to get the loan relatively quickly.
Instant Approval Options
The internet is the best, eh? Seriously, the internet helps you find so many instant approval options are there. With an exceptionally brief credit check, you may be able to get the $1000 loan at an amazing speed.
What Fees Come With a $1000 Loan?
If you need to know how to get a $1000 loan, you should also know the fees that come with it. These include:
Because the loan balance itself is so low, the odds are decent that you will get whacked pretty severely with a late fee if you are late.
Many of these loans have additional fees, including origination fees, that the lenders use to bleed you a little more.
Higher Interest Rates
As you have probably figured out, the interest rates on these loans are enormous. If you have bad credit, they can hit 36%. Even with good credit, they’ll be around 5% —higher than the average mortgage rate or car loan.
Will a $1000 Payday Loan Affect My Credit Score?
If there is any good news about a payday loan, it’s this: It probably won’t impact your credit score. This means you can almost certainly get one, even with a bad score. However, if you are late or don’t pay, your loan will wind up in debt collection, and then it will absolutely hit your credit score.
Share This Article With Someone You Think Could Do With a $1000 Loan
Congratulations! Now you know how to get a $1000 loan. A $1000 loan can sometimes be necessary to handle a ton of expenses and help get you out of a jam. If you’re going to take out a $1000 loan, you have a lot of options. Just make sure you do your homework and get the best deal for yourself.
Of course, you’re not the only one in this situation, and you may have a friend who desperately needs this loan. If that’s the case, don’t horde the article! Share it with them today.