How to Get a $1,000 Loan

6 min readFeb 20, 2026

If you're facing an unexpected expense or a temporary cash shortfall, a $1,000 loan can help you cover the gap. But where you borrow matters, and the type of loan you choose will affect how much you pay in interest and fees, how quickly you get the money and whether the loan helps or hurts your financial situation.

Here's what you need to know about your options for getting a $1,000 loan and how to choose the right one.

Types of $1,000 Loans You Can Get

When you need to borrow $1,000, you have several options to consider. Each comes with different costs, requirements and timelines.

Cash Advance App Loans

Cash advance apps let you borrow a small amount of money—typically between $20 and $500—before your next paycheck. Apps like Earnin, Dave and Brigit connect to your bank account and use your income history to determine how much you can borrow.

Most cash advance apps don't charge traditional interest. Instead, they make money through optional tips, monthly subscription fees or express delivery charges. However, these nominal costs, coupled with short repayment terms, can result in high annual percentage rates (APRs).

The main limitation with cash advance apps is that they typically won't give you the full $1,000 in a single advance. You may need to combine multiple advances or explore other options if you need more.

Compare personal loan rates

Find APRs from 4.99% to 35.99% and flexible terms of 12 to 120 months. Loan amounts range from $1,000 up to $250,000, with funding available the same day or up to 7 days.

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Est. APR6.70 - 35.99%

Loan amount$1,000 - $50,000

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Loan amount$1,000 - $60,000

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Loan amount$5,000 - $100,000

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Loan amount$2,000 - $50,000

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Loan amount$5,000 - $50,000

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Est. APR6.39 - 24.99%

Loan amount$20,000 - $250,000

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Est. APR9.99 - 35.99%

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Est. APR8.47 - 33.64%

Loan amount$1,000 - $50,000

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Est. APR18.00 - 35.99%

Loan amount$1,500 - $20,000

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Term36 - 60 mo

View all of our Best Personal Loans for 2026 to see what you’re likely to qualify for, and the rates and terms you might get.

Personal Loans

A personal loan is an installment loan you repay in fixed monthly payments over a set term, usually one to seven years—repayment periods tend to be shorter for smaller loans. You can borrow $1,000 or more from banks, credit unions and online lenders.

Personal loan interest rates vary widely based on your credit score. According to Federal Reserve data from November 2025, the average rate for a two-year personal loan is 11.65%.

That said, personal loans tend to work well when you need a larger amount and can afford to repay it over time. In fact, some lenders may set minimum loan amounts well above $1,000.

Once you find a lender and get approved, some lenders offer same-day or next-day funding. You can check your rate with multiple lenders through prequalification, which uses a soft credit check that won't affect your credit score.

Payday Alternative Loans

If you belong to a federal credit union, you may have access to a payday alternative loan (PAL). These small loans are designed as a safer alternative to traditional payday loans and are regulated by the National Credit Union Administration.

PALs come in two types:

PAL I: PAL I loans range from $200 to $1,000 with repayment terms of one to six months. To qualify for a PAL I, you must have been a credit union member for at least one month.
PAL II: PAL II loans go up to $2,000 with terms up to 12 months and may be available as soon as you join.

Both types currently cap the APR at 28% and limit application fees to $20.

Payday Loans

Payday loans are short-term loans typically due on your next payday. While they're easy to qualify for—most lenders only require proof of income and a bank account—they come with extremely high costs.

Payday lenders typically charge $10 to $30 per $100 borrowed. A fee of $15 per $100 on a two-week loan equates to an APR of nearly 400%. Some states allow even higher fees.

Because of these costs, payday loans should be viewed as a last resort. Many borrowers get trapped in a cycle of borrowing, paying fees and borrowing again. If you're considering a payday loan, explore other options first.

How to Get a $1,000 Loan

The steps for getting a $1,000 loan depend on the type of loan you choose, but the general process is similar.

Check your credit score. Knowing your credit score helps you understand which loans you're likely to qualify for and what rates to expect. You can check your credit scores for free through Experian.
Compare your options. Look at the APR, fees, repayment terms and funding speed for each lender or app you're considering. Getting prequalified with multiple lenders lets you compare offers without hurting your credit.
Gather your documents. Lenders may ask for proof of identity, income and a bank account, so have recent pay stubs, bank statements and a government-issued ID ready.
Submit your application. Complete the application online or in person. Be accurate and thorough, as errors can delay approval.
Review and accept your loan terms. If approved, carefully read the loan agreement before signing. Make sure you understand the interest rate, monthly payment, total cost and repayment schedule.
Receive your funds. Once you accept the loan, funds are typically deposited into your bank account. Depending on the lender, this can happen the same day or within a few business days.

Should I Get a $1,000 Loan?

Before borrowing, consider whether a loan is the right choice for your situation.

A $1,000 loan could make sense if you need to cover an urgent expense, such as a car repair, medical bill or essential home repair, and you don't have savings to cover it. It may also be worthwhile if borrowing now prevents a more costly problem later, like avoiding a utility shutoff or keeping your car running so you can get to work.

However, borrowing isn't always the best solution. Ask yourself whether you can realistically afford the monthly payments alongside your other expenses. If adding a loan payment would strain your budget, you may end up falling behind on other bills or needing to borrow again.

It's also rarely a good idea to take out a personal loan for unnecessary expenses or lifestyle upgrades, such as a home appliance or vacation.

Alternatives to Taking Out a Loan

If you're hesitant to take on debt, there are other ways to cover a $1,000 expense. Here are a handful to consider:

Build an emergency fund. If your need isn't immediate, consider setting aside money each paycheck in an emergency fund until you reach your goal. Even small contributions add up over time.
Sell items you no longer need. Clothes, electronics, furniture and other household items can be sold online or at a local consignment shop to generate quick cash.
Ask friends or family for help. Borrowing from someone you trust may allow you to avoid interest and fees. Just be sure to agree on repayment terms upfront to protect the relationship.
Negotiate with your creditors. If you're struggling to pay a bill, contact the company directly. Many creditors offer payment plans, hardship programs or extensions for customers facing financial difficulty.
Pick up extra work. Gig work through apps like DoorDash, Instacart or TaskRabbit can help you earn money quickly. You can also ask your employer about overtime opportunities.
Request a paycheck advance from your employer. Some employers will advance a portion of your upcoming paycheck. This typically doesn't involve interest or fees, but make sure you understand the process before committing.

Frequently Asked Questions

Some cash advance apps and payday lenders offer loans without a traditional credit check. Instead, they verify your income and bank account activity. Credit union payday alternative loans also focus on income rather than credit scores.

However, loans without credit checks often come with higher costs. If you have time to shop around, getting prequalified with personal loan lenders uses a soft inquiry that won't affect your credit and may be a good way to find better terms.

Many banks and credit unions offer personal loans starting at $1,000 or less. Some large banks, including Bank of America, U.S. Bank and Wells Fargo, offer small-dollar loan programs designed for existing customers who need quick access to cash.

Credit unions often have lower rates than banks and may be more flexible with credit requirements. If you're not already a member of a credit union, you can typically join by opening a savings account with a small deposit.

A personal loan can affect your credit in several ways. When you apply for a loan, the lender performs a hard inquiry on your credit report, which may cause a small, temporary dip in your score.

Once you receive the loan, it's added to your credit report as an installment account, which can influence your length of credit history. Making on-time payments can help build your credit over time, while missing payments can hurt your score.

Finally, personal loans can also affect your credit mix and overall debt level, both of which factor into your credit score.

Build Credit While You Borrow

Whatever option you choose, borrowing responsibly can help improve your financial health. Making on-time payments on a personal loan or credit union loan can build your credit history and potentially improve your score over time.

If you're not sure where your credit stands, you can monitor your credit for free through Experian. Understanding your credit can help you qualify for better loan terms and save money in the long run.

About the author

Ben Luthi

Ben Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.

How to Get a $1,000 Loan