$4,000 Small Personal Loans for Good & Bad Credit

Can you get a personal loan for $4,000?

Yes, getting a personal loan for $4,000 may be incredibly easy for someone with good to excellent credit. With the rise in popularity of online lenders, you should have access to a variety of offers without leaving the comfort of your own home.

What can a $4,000 personal loan be used for?

A $4,000 personal loan can be used for whatever you like in most cases. Some good examples of what a $4,000 personal loan could be used for include paying for wedding expenses, completing some major car repairs, or even helping with living expenses while you go to school full-time. Some people may also use a $4,000 personal loan to consolidate some debts and to pay off some high-interest credit cards. 

What credit score do you need for a $4,000 personal loan?

Minimum credit score requirements vary by lender, however, most lenders may want a credit score of at least 580 or above. If you have a credit score lower than 580, you may still qualify for a personal loan but you will have trouble qualifying for larger amounts and you may be required to pay interest rates as high as 36%. 

How much would a monthly payment be on a $4,000 loan?

One of the best ways to get a semi-accurate picture of what kind of monthly payments you may be required to pay for a personal loan of $4,000, you can use one of the many free online personal loan calculators. To properly use the calculator, you should have some idea of what your credit score is so that you can see what range of interest rates you most likely would qualify for based on your credit profile. Personal loan interest rates can range anywhere from 3% to 36%, depending on the lender and what you qualify for.

To get the lowest available rates, you may need to not only have a near perfect credit score, but you may need to have an incredibly low debt-to-income ratio, and even sign-up for automatic payments. Some lenders will have lower APRs as an incentive to sign-up for auto-pay or other programs. Even with a credit score of somewhere between 720 to 850, the average APR for a borrower with this credit profile still ranges from 10.3% to 12.5%. This is the average, meaning that it is completely possible to obtain a loan with a single digit interest rate, you may just have to meet additional requirements.

Here is a quick breakdown of average interest rates by credit score as recent as July of 2021:

• Excellent credit: 720 to 850 - Average interest rates from 10.3% to 12.5%.
• Good credit: 690 to 719 - Average interest rates from 13.5% to 15.5%.
• Fair credit: 630 to 689 - Average interest rates from 17.8% to 19.9%.
• Poor credit: 300 to 629 - Average interest rates from 28.5% to 32.0%.

Once you know what credit category you are in, and what interest rates you may qualify for, then you can use an online loan calculator to figure out how much your monthly payments may be. If you do not know your credit score, you can obtain a one free copy of your credit report from each of the three credit bureaus upon request. 

Let us look at a few payment scenarios to give you an idea of what your payment could look like. Let’s say you borrow $4,000 at 10% interest for 12 months. Your monthly payments should be around $352. If you extend the term to 48 months, your payment should be around $185. The main difference between the 12-month and the 48-month loan is the total interest paid over the life of the loan. The 12-month loan could accumulate an extra $219.96 in interest while the 48-month loan may see interest accumulate closer to $429.91. 

How does APR work on a $4,000 personal loan?

An APR is the total amount of interest and additional fees you may need to pay on a loan, calculated yearly, and then given to you as a percentage. The APR is then calculated into the total amount of the loan and the monthly payments are determined based on the total loan amount including all interest and fees and the length of the loan repayment period. 

Where to get a $4,000 personal loan

Most banks, credit unions, and online lenders offer $4,000 personal loans. This means, you should have plenty of options. Online lenders usually have less strict requirements and faster funding times so you may want to go this route. At PrimeRates you can check personal loan offers without impacting your credit score. Our network of top national lenders are ready to compete for your business. 

How will a $4,000 loan affect my credit?

Any time you apply for a new line of credit, you can expect to take a little hit on your credit score. A hard inquiry is required during the loan application process. Good news is, that once you take the initial small hit to your credit score for taking on a personal loan, you will start to boost your credit score by continuing to make on time payments through the life of the loan. 

Do I get access to all $4,000 right away?

Yes, once you are approved for a $4,000 personal loan, the total loan amount, minus any origination fees, can be deposited into your account. If you need exactly $4,000, you may want to borrow a little more to cover the origination fee. 

How do you apply for a $4,000 personal loan?

Most lenders require borrowers to start by submitting an application. In most cases, you can do this online. If you are in the preliminary stages of shopping for the best personal loan offer, you should start by checking offers at PrimeRates.

What documentation is needed to apply for a $4,000 loan?

The most basic documentation that you may need to apply for a  $4,000 personal loan include the loan application, proof of identity (usually two forms of identification are the norm), employment and income verification, and proof of address. Documentation can vary depending on the lender.

How long does it take to get approved for a personal loan?

If you are proactive and have all the proper documentation and you respond promptly to any further inquiries from a lender, then often you could be approved the same day that you apply. In most cases, you will receive prequalification status before pre approval status. After earning prequalification status a lender may request certain documentation needed to transition you to pre approval status.

Is a small personal loan better than credit card debt?

If you have fair, good, or excellent credit, then in most circumstances it may be in your best interest to obtain a personal loan rather than using a credit card. Credit card interest rates can be high no matter what your credit score is. Exploring your personal loan options could save you more money by helping you lock in a lower interest rate. 

How can I get a $4,000 personal loan fast?

If you need a $4,000 personal loan fast, you should use an online lender. At PrimeRates, our lending partners can fund loans in as little as 1 to 2 business days, although funding times can vary.

Apply for a $4,000 personal loan

Before applying for a personal loan, you probably want to shop offers. At PrimeRates you can complete an online application and receive offers almost instantly. Simply, select the offer that you prefer and finalize the loan with the lender of your choice.