Where to get a $20,000 loan

If you’re planning to take out a $20,000 loan to consolidate debt, fund a major purchase or advance another financial goal, it’s important to weigh your options.

Traditional personal loans tend to have lower rates than credit cards, so they can be an attractive option. But you’ll want to consider your personal finances and what terms you’re likely to qualify for, as well as how payments will fit into your monthly budget.

We’ll review lenders you may want to consider and guide you through the process of applying for a loan.

Monthly payments for a $20,000 personal loan

Loan durationAverage monthlypayments ($20,000 loan)Poor creditAverage creditGood creditExcellent credit1-12 months13-24 months25-36 months37-48 months
Average monthly loan payments are based on aggregate TransUnion credit report data from Credit Karma members with active personal loans as of December 2022
  • The best $20,000 personal loans
  • How to get a $20,000 loan
  • FAQs about $20,000 loans

The best $20,000 personal loans

U.S. Bank

U.S. Bank offers unsecured personal loans, and you’ll typically find out whether your loan is approved quickly. U.S. Bank doesn’t charge any origination fees or prepayment penalties. To find the best options, you may want to become a U.S. bank customer before applying for a personal loan.

OneMain Financial

OneMain offers flexible repayment terms, and you can use its loan and payment calculator to estimate your potential monthly payments. There are lots of fees with this lender though, including origination fees, late payment fees, nonsufficient funds fees and governmental fees. OneMain’s starting interest rates are relatively high compared to traditional lenders — you may find a better deal elsewhere if you’ve got good credit.

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PNC Bank

A PNC Bank personal loan might be worthwhile if you need a personal loan and have good credit or can apply with a co-applicant with a solid credit history. But it’s not available in every state, and you’ll need to borrow a larger sum of money to lock in the lowest rate.

PenFed Credit Union

PenFed Credit Union is worth considering if you have good credit and need a small personal loan. You don’t need to be a member to apply, but the credit union charges late fees and returned payment fees.

SoFi

You may need strong credit to qualify with SoFi. But if you do, you can access specialized perks in addition to competitive rates. And if you lose your job through no fault of your own while you’re paying off a SoFi loan, you may be able to temporarily modify your payments.

How to get a $20,000 loan

Applying for a $20,000 loan can take some work, but it’s worth the effort if you can save money by consolidating debt at a lower rate or finance a necessary purchase.

Start by collecting basic information about your finances, such as …

  • W2s
  • Recent paystubs
  • Identification/Social Security number/driver’s license
  • Desired loan amount
  • Monthly expenses, such as housing costs and debt
  • Information about any collateral you want to use

From there, it’s a good idea to apply for prequalification. This lets you preview your potential rate without a hard credit inquiry. It will also give you a good idea of which lender may be the best fit for you.

Once you decide to move forward and officially apply though, the lender will likely perform a hard credit inquiry that can have a temporary effect on your credit scores.

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If you apply for a personal loan, you may be able to access money within a few days.

FAQs about $20,000 loans