4 Small Personal Loan Options in 2025

We all know the stress of not having enough money in the bank. Sometimes, you need a little help to get ahead. That’s where a personal loan might come in. 

Borrowers use small personal loans to cover a variety of necessities, from medical expenses to car repairs. Let's take a closer look at these financial solutions, how they work, and whether one is right for you. 

How small personal loans work 

Small personal loans provide the extra money you need to cover expenses. These loans typically range from around $50 to $1,000, depending on your lender and loan type. 

Easiest small personal loans to get 

When you need money fast, a small personal loan can throw you a lifeline. But before you apply, you’ll need to understand the different types of loans available so you can find one that aligns with your specific needs and situation. 

Best for fast funding 

If you need money immediately, a Cash Advance could be a good solution. Also known as Payday Loans, these are short-term, small-dollar loans typically due on your next payday. They are highly accessible and convenient for those in immediate need of cash. 

You can usually apply for this small personal loan online. Direct lenders like Advance America could even approve your application and provide the funds the same day you apply! 

Best for flexibility 

Sometimes, you might be looking for a more flexible option. That’s where Installment Loans come in. 

This type of small personal loan provides a lump sum of money that you’ll repay over time in monthly installments. 

Another flexible option is a personal Line of Credit. Opening a Line of Credit gives you access to recurring funds. Once approved, you can draw money from your credit limit as needed. Best of all? You only pay interest on what you borrow rather than the entire amount you’re approved for. 

Best for bad-credit borrowers 

Poor credit often stops people from applying for a small personal loan. In the event that you need money and have a bad credit score, a Cash Advance or Payday Loan could be an option. 

These types of loans don’t require a minimum credit score because lenders look at your income and employment history. This could allow you to get the money you need despite a poor credit history. 

What to consider before getting a small personal loan 

When comparing personal loan options, you’ll want to weigh the pros and cons. You might find one with favorable terms and spending flexibility, but what are the potential drawbacks? Can you afford the added interest and fees? What if you miss a payment? Make sure the loan and repayment plan fits into your budget before signing on the dotted line 

Benefits of taking out a small personal loan 

Better terms for higher borrowing amounts 

With bad credit, it can be difficult to secure larger loan amounts from banks and credit unions. Direct lenders base their loan decisions on your proof of income and employment history, so you could qualify for the amount you need even if traditional lenders have turned down your application. 

Use the money for what you need 

Small personal loans can be used for a variety of purposes. They are highly versatile and there aren’t any restrictions on what you can use them for. Whether you need money for hospital bills, home repairs, or debt consolidation, a small personal loan can provide the financial support you need. 

Apply for a personal loan today 

How do I choose a reputable lender? 

Understanding what to look for in a lender can help you find the right solution for your needs and budget. 

The lender’s history and reputation 

Always research the lender's reputation before you apply. Look at how long they’ve been a lender and see what people have to say about them. 

Reading customer reviews and ratings to get an idea of their level of customer service and reliability is vital. A reputable lender will have mostly excellent reviews. If you’re seeing a lot of bad reviews, look elsewhere. 

Interest rates and loan fees 

Rates and fees can vary widely between lenders. Shop to find one that offers competitive rates and reasonable fees — and be wary of lenders that aren’t transparent. 

Loan application process 

Whether they operate a physical location or online, reputable lenders will have a straightforward application process. Choose a lender that’s clear about their requirements, approval times, and funding. Steer clear of confusing applications that don’t disclose terms and fees upfront. 

Customer support 

Good customer service is essential in the financial realm. Your lender needs to be accessible, knowledgeable, and willing to help you with any questions you might have. It should be easy to reach them by phone, email, or online chat. 

Loan repayment options 

Reputable lenders will be upfront about their payment options. They might even offer automatic payments, which can help keep you on track with your repayment plan. If you’d prefer in-person payments, you should look for lenders that have a physical store near you. 

Lender credentials 

Credentials are one of the most important things to consider when looking for a small personal loan lender. Take a quick peek at the lender’s website to view their credentials and ensure that they’re licensed to operate in your state. 

Dealing with a licensed lender provides an added layer of protection and ensures they adhere to industry standards. 

Small personal loan FAQs 

Do traditional banks offer small personal loans? 

Some banks do offer small personal loans, which you can apply for in person or online. Traditional financial institutions may offer lower interest rates for small personal loans, but they often have a more extensive application process. This means they’ll probably conduct a credit check and may not approve applicants with bad credit. 

Can I get a small personal loan with bad credit? 

Applications vary between personal loan lenders. But if you have bad credit, getting a small personal loan is still possible. You may want to opt for Cash Advances or Payday Loans if your credit score is low, as payday lenders don’t usually require good credit for approval. 

Does a small personal loan hurt your credit? 

Most small personal loans will not hurt your credit unless you miss a payment. If you’re having trouble with your current repayment plan, refinancing your small personal loan could help. 

Apply for a small personal loan today 

Taking out a small personal loan doesn't have to be a complicated process. Small personal loans offer several advantages, including competitive interest rates, flexible minimum loan amounts, and the freedom to use the money as you see fit. As with any loan, however, remember to only borrow what you can comfortably repay.