Get a $7,000 loan, even with bad credit

Replacing a furnace, paying for major car repairs or other emergency expenses can wreak havoc on your finances. If you don’t have the cash on hand or an emergency fund to tap, a personal loan could be a good option. Be sure to consider banks, credit unions and online lenders to find the best deal.

$7,000 personal loan lenders

Compare this list of lenders that offer $7,000 personal loans with varying rates, loan terms and credit requirements.

How to get a $7,000 loan

Once you’re ready to shop for a $7,000 personal loan, follow these five steps:

1. Calculate what you can afford. Evaluate your budget to determine how much you can afford for a monthly loan payment. Doing so can help you figure out how long you’ll need to repay the loan.
2. Explore your options. Look for lenders that offer $7,000 loans. An online search is a great place to start. You may also want to check with your regular bank or credit union since you already have an established relationship there.
3. Compare lenders. Now that you’ve narrowed the field a bit, compare rates and loan terms from multiple lenders. Watch for origination or other fees, plus credit score and income requirements.
4. Get prequalified. Most lenders do a soft credit check during pre-qualification to give you an estimate of the interest rate you may qualify for. Get multiple quotes to find the best deal, but your actual rate may vary after the formal loan process and a hard credit inquiry.
5. Apply. Once you’ve found the right lender, fill out the loan application and submit the required documentation. The lender should notify you of its decision within a day or two — or even the same day if it’s an online lender.

Eligibility requirements for a $7,000 loan

Requirements may vary by lender, but you’ll typically need to meet the following criteria:

• Have a good credit score. You’ll typically need a credit score of 670 or higher to get the best rates on a $7,000 personal loan, but some lenders accept borrowers with lower scores.
• Have a low DTI ratio. Your debt-to-income (DTI) ratio compares your monthly debt payments in relation to your income. Lenders typically don’t want to see a DTI ratio of more than 43% for a personal loan, although some may go as high as 50%.
• Be employed. Most reputable lenders require proof of employment and income to approve a personal loan. Be prepared to submit pay stubs, W-2s, 1099s or tax returns.
• Be over 18 and a US citizen or permanent resident. Usually, you need to be at least 18 and a US resident to qualify for a personal loan, although some lenders offer loans for nonresidents in the US.

How to increase your chances of approval

One of the best ways to boost your chances of loan approval is to raise your credit score. Try to pay down as much of your existing debt as you can before applying — a surefire way to improve your score.

You may also want to consider ways you can increase your income. Maybe you can pick up extra hours at work or find a side gig. Increasing your income also lowers your DTI and looks good to lenders.

Can I get a loan for $7,000 with bad credit?

It’s harder but not impossible to get a loan if you have a poor credit history. Some lenders, like Upstart and OneMain Financial, welcome borrowers with less-than-perfect credit. But keep in mind that a lender will likely charge you a higher rate than those with better credit scores.

How much does a $7,000 loan cost

Interest rates for a $7,000 loan typically run between 6% and 36%. The rate you qualify for depends on your credit score, DTI ratio, income and other factors. The best rates are typically reserved for larger loans or those with excellent credit.

Some lenders also charge origination or application fees, which could be as high as 10% of the loan. Usually, that fee is deducted from the total loan amount, although some lenders don’t charge origination fees.

You’ll also want to watch for early repayment penalties. A good rate may not be worth it if you’re penalized for repaying your loan early. Finally, be aware of non-mandatory fees, such as late payment penalties or insufficient funds charges.

Calculate your monthly loan repayments

Use our $7,000 loan payment calculator to compare monthly loan payments based on different interest rates and loan terms.

5 tips to get a lower rate on your loan

1. Enlist a cosigner. If you can get a friend or family member with excellent credit and minimal debt to cosign your loan, you should qualify for a better rate than you could get on your own.
2. Request a shorter loan term. If you can manage a larger monthly payment, you could save hundreds of dollars in interest with a shorter loan term.
3. Raise your credit score. A better credit score can help you get a more competitive interest rate.
4. Compare multiple lenders. Rates, terms and fees vary wildly by lender. Be sure to look around to find the best deal for you.
5. Get a secured loan. Loans secured with collateral typically have lower rates than unsecured loans.

How to pay off $7,000 in debt

Here are a few strategies to help you repay your loan faster or save money:

• Refinance. If rates go down during your loan term, see if you can refinance at a better rate.
• Repay the loan early. Any extra money you can add to your monthly payment will shorten the life of the loan and save you money on interest charges. Just be sure there aren’t any prepayment penalties.
• Try payment splitting. If you make half your payment two weeks before it’s due and the other half on its pay date, you can save money on interest without stretching your budget.

Alternatives to personal loans

Consider other options before deciding if a personal loan is the right fit for your situation.

• Personal line of credit (PLOC). Rather than a lump sum loan, a PLOC gives you access to a revolving line of credit that you can draw on as often as you need to up to your limit. A PLOC might make sense if you’re not sure how much you want to borrow or want immediate access to funds in case of an emergency.
• Apply for a 0% rate credit card. If you qualify, you could get a credit card with a 0% introductory rate for up to 18 months. As long as you pay it off in time, you just got yourself an interest-free loan.
• Leverage your home’s equity. If you have enough equity in your home, consider a home equity loan or home equity line of credit (HELOC). Using your house as collateral could get you a better rate than a personal loan, but it puts your home at risk.

Other loan amounts

• $10,000
• $15,000
• $20,000
• $35,000
• $50,000
• $75,000
• $100,000