This is the smallest personal loan you can get

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Lenders usually have minimum and maximum amounts that they are willing to lend. When you look at the best personal loans from The Ascent, you will find that the minimum loan is $ 1,000 and the maximum is $ 100,000. Of the eight lenders on the list, only one allows loans over $ 1,000.

The minimum varies depending on the lender – sometimes by thousands of dollars. This fact underscores the importance of rate shopping with several different lenders. If you shop around, the more likely you will get an offer that is closest to the amount you really need. And if your credit score is high enough, you shouldn’t have a problem qualifying.

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Choosing the Right Lender

When buying a personal loan, the smart move is to compare all of the costs associated with a loan. In addition to the interest rate, some lenders charge:

Let’s say you only need to borrow $ 1,500, and Lender # 1 offers a minimum loan amount of $ 1,500. So far, so good. However, if lender # 1 has an 8% processing fee and a 2% prepayment penalty, this may not be the best deal.

What if Lender # 2 offered a minimum loan amount of $ 3,000, but their interest rate was lower and they didn’t ask for a penalty or prepayment penalty? It is possible that it makes more sense to borrow from a lender with a higher minimum loan amount, repay the amount you do not need immediately and use their better terms to repay the remaining loan.

Choosing the Best Ascent Personal Loans

Are you looking for a personal loan but don’t know where to start? Choosing the best Ascent personal loans will help you demystify the offers so that you can choose the best one for your needs.

Take a look at the selection

Notice: Even if you immediately pay off half of the loan, your monthly payments will remain the same. However, making this monthly payment on a now reduced balance will ensure that your loan will be paid off early.

Advantages of a small loan

It is wise to apply for a small loan. Taking out a small loan is a great way to build up a loan or build your credit score. In addition to increasing your creditworthiness if you repay the loan as agreed, a small loan allows you to cover a financial obligation without going into debt further than necessary.

Read the fine print

As with any loan, it pays to understand what you are signing. Small loans are less attractive to lenders than large loans for one important reason: A lender does not earn as much in interest. This is why some lenders charge all kinds of junk fees to offset the interest they would have earned had you borrowed more money.

Other small loan options

If you’ve shopped at lenders but aren’t very lucky to find a loan that is right for you, consider these options:

Private bank or credit union

Any financial institution that you have an established relationship with can check your banking history and get a good feel for whether you can repay the loan. They are also more likely to overlook minor credit problems because they want to keep you as a customer – or, in the case of a credit union, as a member.

0% credit card promotion rate

Before opting for a personal loan, you should look for alternatives such as a credit card. To attract new customers, credit card companies sometimes offer 0% promotional prices. These installments typically last 12 to 18 months. So if you have strong credit, you might be able to snag a 0% APR credit card that offers interest-free payments for up to a year or more.

family and friends

If the amount you need to borrow is small and you have a reputation for repaying debt as promised, it can’t hurt to ask someone close to you for the loan. If they agree, write a contract that clearly states how much you will borrow, whether you will pay interest, what the monthly payments are, and when the loan will be repaid in full.

Choosing Ascent for the Best Debt Consolidation Loans

Do you want to pay off debts faster? Check out our shortlist of the best debt consolidation personal loans and cut your monthly payment with a lower interest rate.

Pay off debts faster

The bottom line is, the next time you need a small loan, don’t just look at the lowest amount you can borrow. Look for the lender who offers the funds at the lowest end price. And consider other options available.

You can find more information in our guide on “How do personal loans work?”



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