For a $20,000 loan, you’ll typically need good to excellent credit, though some lenders will work with borrowers who have bad credit.
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There are times in life when you might need to borrow money, whether you’re moving across the country for a new job, remodeling your house, or dealing with an unexpected expense.
It’s crucial to carefully consider as many lenders as you can to find a loan that meets your needs if you need to take out a sizable personal loan, like a $20,000 loan.
Where to get a $20,000 loan
You’ll find some of your options for various categories of personal loan lenders below:
Conveniently, you can apply for a low-interest personal loan online. Online lenders’ websites are accessible every day of the week, 24 hours a day.
Additionally, you may receive your loan amount more quickly (in some cases the next business day) and at more affordable rates from online lenders.
The lenders for personal loans in the table below have all been authorized partners with Credible. By completing a single form and avoiding a hard credit check, you can request rates from each of these partner lenders.
Another good reason to compare rates from different lenders, in addition to getting a low interest rate, is that you might be accepted by some while being rejected by others.
But that doesn’t necessarily mean you can’t get a loan if one lender rejects your application. Even if you are granted a $20,000 loan despite having bad credit, you should anticipate paying a higher interest rate.
Borrowers with better credit may pay significantly lower interest rates than those with a history of bad credit.
Some banks like Chase, Bank of America, and Capital One don’t offer personal loans. But other big banks like Citibank and Wells Fargo do. Most even offer an annual percentage rate (APR) discount if you set up automatic payments.
While some banks permit online loan applications, others demand that you submit your application in person at a branch. For some loans, it may also be necessary for you to already be a customer.
For personal loans, credit unions can also be a good option. Since they are nonprofit institutions, credit unions frequently offer their members lower rates.
Many “all-access” credit unions have lax membership requirements, so you can join by giving a small amount of money or by joining an affinity group.
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$20,000 loans for fair or bad credit
You may believe that you are ineligible for a loan if you have fair or poor credit, which is generally defined as having a credit score below 700.
But there are a number of lenders who provide $20,000 loans and are prepared to work with borrowers who have poor credit.
Here are a few options from our partner lenders:
What is the monthly payment on a $20,000 loan?
For a $20,000 loan, two factors will largely determine your monthly payment:
Choosing a three-year term instead would result in a higher monthly payment of $692 and a total repayment cost of $24,916; however, over the course of the loan, you would save $3,556.
It’s crucial to think about the cost of a personal loan before applying for one so that you can be ready for any unforeseen expenses. Using the personal loan calculator below, you can determine an approximate loan payment amount.
Enter your loan details to determine your potential payment amount Loan amount
You will pay $ each month in interest on a $ loan for its entire term, totaling $. Throughout the course of the loan, you will pay a total of $.
Compare rates without affecting your credit score if you need a personal loan. 100% free!.
Checking rates won’t affect your credit score.
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What to consider before applying for a $20,000 loan
Do your research and locate a lender for personal loans who is providing the best loan terms and rates for you:
You’ll frequently have a choice of repayment terms, or the period of time you’ll have to pay back your loan, when evaluating your loan options.
Personal loans typically have repayment periods of two to seven years.
However, if you select a loan with a brief repayment term, your monthly loan payment will typically be higher because you’ll be making fewer payments.
You can save hundreds or even thousands of dollars in interest by selecting the loan with the shortest repayment term and highest monthly payment you can afford.
Savings by accelerating repayment on a $20,000 personal loan
The table below demonstrates how, if you’re ready to make a larger monthly payment, choosing a loan with a shorter repayment term could result in financial savings.
The same lender is offering all of the loans, but a loan with a shorter term might have a lower interest rate and result in overall lower repayment costs.
| Repayment term | Interest rate | Monthly payment | Total interest |
|---|---|---|---|
| 3 years | 7% | $618 | $2,232 |
| 4 years | 8% | $488 | $3,436 |
| 5 years | 9% | $415 | $4,910 |
| 7 years | 10% | $332 | $7,890 |
You may be able to get a loan with a lower interest rate if you choose a shorter loan term, which would lower your overall repayment costs. Interest rates are hypothetical for purposes of illustration only. Loading widget – embedded-prequal.
Most personal loans are offered as fixed-interest-rate installment loans. But keep in mind that if you accept a personal loan with a variable interest rate, your monthly payment may increase or decrease along with your interest rate.
The table below illustrates how much money can be saved on a loan by comparing interest rates. The hypothetical loans in this table all have the same term of repayment, but the loan rates being offered by the lenders vary.
| Interest rate | Monthly payment | Total interest | Total repaid |
|---|---|---|---|
| 7.0% | $396 | $3,761 | $23,761 |
| 7.5% | $401 | $4,046 | $24,406 |
| 8.0% | $406 | $4,332 | $24,332 |
| 8.5% | $410 | $4,620 | $24,620 |
| 9.0% | $415 | $4,910 | $24,910 |
| 9.5% | $420 | $5,202 | $25,202 |
| 10.0% | $425 | $5,496 | $25,496 |
When looking for a personal loan, if the interest rates you see don’t sit well with you, you might want to think about a secured loan like a home equity line of credit (HELOC) or cash-out refinance mortgage.
One disadvantage of a secured loan is that, unlike personal loans, which are typically unsecured loans, you need collateral, in this case your home. This serves as a promise that you will repay the loan.
Some lenders charge fees, which may increase the total cost of your loan. Common fees to look for include:
Remember that there are no prepayment penalties if you obtain a loan from one of Credible’s associate lenders.
If you’re applying for a loan, consider any potential discounts as well. Some lenders provide loyalty discounts if you are an existing client or autopay discounts if you sign up for automatic payments.
Check Out: How to Build Credit Fast
How to qualify for a $20,000 personal loan
A $20,000 loan is a significant amount of money. In order to be considered for a $20,000 loan, lenders typically consider the following qualifications:
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How a personal loan will affect your credit score
The lender will run a hard credit check when you apply for a personal loan to determine your creditworthiness. This could cause a slight drop in your credit score. However, the impact is typically only short-lived, and your score will probably improve again in a few months.
Furthermore, getting a personal loan could eventually help you raise your credit score. Any initial negative effects might eventually be outweighed by this favorable effect on your credit.
If you’re prepared to find a personal loan for $20,000, make sure to comparison shop and take into account as many lenders as you can to find the best loan for you. Credible makes this simple; in two minutes, you can compare your prequalified rates from several lenders.
Credible makes it simple to find the ideal loan for you when you’re ready to find a personal loan.
Find My Rate Checking rates won’t affect your credit
Rates and Terms: Lenders on the Credible platform offer personal loans with rates between 5 and 20 percent. 40%-35. 99% APR with terms from 12 to 84 months. When applicable, lender discounts for signing up for autopay and loyalty programs are included in the rates shown. Based on the lender’s eligibility requirements, which may include aspects like credit score, loan amount, loan term, credit usage and history, and vary depending on loan purpose, actual rates may differ from those advertised and/or shown. Excellent credit is typically necessary to obtain the lowest rates, and for some lenders, these rates may only be used for certain types of loans or loans with shorter terms. Lenders using our platform charge origination fees that range from 0% to 10%. For their autopay and loyalty discounts, each lender has its own set of qualifications (e g. In order to be eligible for the autopay discount, some lenders require the borrower to choose autopay prior to loan funding. The lender sets all rates, which must be agreed upon by the borrower and the lender of the borrower’s choice. An interest rate of seven percent for a $10,000 loan with a three-year repayment period 99%, a $350 origination fee and an APR of 11. 51%, the borrower will get $9,650 when the loan funds and will pay $313 every month for 36 months. 32. The borrower will pay a total of $11,279 assuming timely payments, compliance with all terms and conditions of the loan contract, and enrollment in any discount programs reflected in the APR/interest rate over the course of the loan. 43. No lenders on our platform demand a down payment as of March 12, 2019, and there are no prepayment penalties. About the author.
Freelance writer Kat Tretina writes about a variety of topics, including mortgages, personal loans, and student loans. Numerous publications, including the Huffington Post, Money Magazine, MarketWatch, Business Insider, and others have featured her work.
Personal Loan Amounts
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FAQ
How do I qualify for a 200k loan?
To be approved for a $200,000 mortgage with a minimum down payment of three percent, what income is necessary? 5 percent, you’ll require a yearly income of about $62,000. (This is an estimated example. ).
What credit score is needed for a 20000 personal loan?
What credit score is required for a $20,000 personal loan? You must have a credit score of 640 or higher in order to be approved for a $20,000 personal loan. You might not be eligible for the lowest rates if you have poor or fair credit.
What is the monthly payment on $100000 personal loan?
Using our personal loan calculator, the following examples show what your borrowing costs might be for a $100,000 loan with a five-year term depending on your credit score: Excellent credit (11 62 percent interest rate): $2,205 monthly payment and $32,317. 39 in total interest paid.
Can I get a 250k personal loan?
We provide loans from $2,500 to $250,000 that are both unsecured and secured and have manageable fixed monthly payments. And with our credit line product, all you have to do to get the money you need is write a check instead of tying up other assets. Apply online, in person at a nearby branch, over the phone at (800) 429-7685, or at a TeleLoanTM location.