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Top 5 Best Small Personal Loans of 2022 – Criteria, Rates, Tips, and More!

  • By Jenna Gleespen
  • Sep 29, 2022

One of the fastest and most convenient ways to borrow money is to get a personal loan online. The best small personal loans can have lower interest rates than a bank or credit union. They can also be easier to apply for and give you access to cash faster for a minimum credit history requirement.

But there are so many personal loan lenders to choose from that it can be hard to find the right one for you. We’ve looked at the best places to get secured loans online and rated them. Based on interest rates, loan terms, origination fees, and private credit requirements, know the perfect one for you down below!

The Top 5 Small Personal Loans Providers

Capital Pacific Loans: Ultra-Fast Funding for Any Credit Score

Minimum Credit Score

None (flexible)

Annual Percentage Rate (APR) Range

Depends on state regulations

Loan Amount

$100 to $25,000+

 

best small personal loans

 

Capital Pacific Bank is an online lender headquartered in Pleasant Hill, Atlanta. It offers personal loans within ten states: Alabama, California, Colorado, Ohio, Florida, Illinois, Michigan, Oklahoma, Texas, and Kentucky.

Personal loans from Capital Pacific Loans range from the minimum loan amount of $100 to more than $25,000. The time you have to pay it back ranges from 24 months to 20 years, depending on the loan proceeds. 

This is the perfect A-level loan option if you need cash in your bank account within the day for a small fee. But mind that this is also a perfect fit for you if you need a large amount like debt consolidation loans.

MoneyZap: Loans Up to $10,000 for Bad Credit

Minimum Credit Score

None (flexible)

Annual Percentage Rate (APR) Range

6% to 36%

Loan Amount

$100 to $10,000

 

best small personal loans

 

MoneyZap started in 2001 and is based in Henderson, Nevada. Since its founding, more than 60M people have used the platform, finding top lenders in the US since 2015.

Loan amounts start at just $100 and can go up to $15,000. MoneyZap does not charge customers an origination fee or a filing fee for applying.

MoneyZap makes it easy to get loans by shortening the process to less than five minutes. You can also sign a loan agreement in a couple of minutes. The cons of MoneyZap come down to the difficult-to-navigate website interface.

AdvanceAmerica: Accessible Loans Anywhere, Anytime

Minimum Credit Score

Less than 620 for smaller loans; more than 620 for $1,000+ loans

Annual Percentage Rate (APR) Range

$15 per $100 borrowed

Loan Amount

$50 to $50,000

 

best small personal loans

 

Advance America’s business and lending model is unique. It uses Artificial Intelligence (AI) to sort and check the creditworthiness of borrowers. This option works for young and low-credit borrowers with no chance at traditional loans.

But while Advance America loans pay out fast, its interest rates and fees are so high that we advise you only to use it as a last resort. For example, the fees for payday loans in California add up to an annual rate (APR) of about 460%. Installment loans can have lower interest 

DirectLoanTransfer: Instant Approval for Various Loan Types

Minimum Credit Score

Up to 35.99% for bad credit scores

Annual Percentage Rate (APR) Range

Not specified

Loan Amounts

$100 to $5,000

 

best small personal loans

 

DirectLoanTransfer (founded in 2016) offers a variety of loans. There are short-term loans and loans that borrowers don’t need to pay back immediately. DirectLoanTransfer gives loans to people between $100 to $5,000.

For DirectLoanTransfer, higher credit scores mean lower rates. So APRs rise with the amount. Besides this initial turn-off, the late payment fee for DirectLoanTransfer is also higher. This option can be pricey compared to other personal loan providers and aggregators.

Upstart: Best Personal Loans for Multi-Purpose Use

Minimum Credit Score

None (flexible)

Annual Percentage Rate (APR) Range

5.42 to 35.99%

Loan Amount

$1,000 to $50,000

 

best small personal loans

 

Upstart’s business and lending model is unique. It uses Artificial Intelligence (AI) to sort and check the creditworthiness of borrowers. This option works for young and low-credit borrowers with no chance at traditional loans. With this option’s high maximum loan amount, you can use it as more funding for things like consolidating debt.

Upstart’s weaknesses are its restrictive repayment terms and hefty origination fees. Only three- or five-year repayment terms are available. This restriction denies borrowers control over monthly payments and interest costs. The lending platform also charges an origination fee of up to 8%.

Rates, but some still have APRs that are higher than 200%.

How Do I Choose the Perfect Loan for Me?

  1. Funding Speed

Can you wait for your loan for weeks, days, or hours? You must know how much time you can give online lenders to give you loan approval.

The more urgent your need is, the faster you want your lender to be. In this case, choose a lender who can give you a direct deposit and help you immediately. Most importantly, choose a lender who will keep their word and tell you how long the process will take.

  1. Cost of Borrowing

A great personal loan has fair rates and fees that don’t take advantage of you. The perfect one is a loan you can afford 100% by your due date. Also, make sure you are clear about the fees you may have to pay if you pay late or don’t pay back the loan.

  1. Level of Trustworthiness

A great personal loan has fair rates and fees that don’t take advantage of you. The perfect one is a loan you can afford 100% by your due date. Also, make sure you are clear about the fees you may have to pay if you pay late or don’t pay back the loan. 

Final Words: Best Small Personal Loans

There are plenty of choices out there when it comes to small personal loans. The companies listed above are all reputable in our eyes, and are worth looking into should you need a small loan. Make sure you can afford to repay any loans before taking them out, and also make sure you do your due diligence on the lending company to save you from financial hardship down the line. 

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Jenna Gleespen is a published author and copywriter specializing in personal and investment finance. Her expertise is in financial product reviews and stock market education.