How to get a $10,000 personal loan

We all have tasks that need money to accomplish. What's on your financial to-do list?

Maybe it's time to replace your outdated appliances. Or perhaps you want to tackle a much-needed home repair. Or you want to get rid of debt more easily with a debt consolidation loan.

Whatever your goal, a $10,000 personal loan could be the tool that helps you get there. Let's look at how a $10k personal loan works and how you might qualify for one.

What you need to know about a $10,000 personal loan

A personal loan lets you borrow a lump sum of money for personal reasons. You pay it back over time, with interest.

Here's a quick look at the typical features of personal loans:

• Fixed rates. Personal loans typically have fixed interest rates, meaning the rate doesn't change over the life of the loan.

• Predictable payments. A fixed-rate personal loan has a set monthly payment that stays the same from beginning to end.

• No collateral. Some loans require collateral or something of value that you own to secure them. Personal loans are most often unsecured, so you don't need collateral.

How much does a personal loan cost? Your monthly payments and total cost depend on the amount you borrow, the repayment term, and the annual percentage rate (APR). The APR is the annual cost of having the loan, including interest and fees.

Here's an example. Say you get a $10,000 personal loan at 19% APR with a two-year repayment term. You'd pay:

• $504 monthly

• $2,098 in interest

You can shop around to try and get a better rate, and you can decide how much you borrow—to a point. But the loan term is one area you generally have the most control over, and it can really shape your monthly payment and total cost.

Consider that same $10,000 loan. Here's how the payment and cost change with the loan term:

A shorter term means a higher monthly payment and less total interest. A longer term lowers your monthly payment and raises your total interest.

It's easy to calculate the cost of a personal loan with an online loan calculator. You can plug in different loan terms or rates to see how payments change.

This example is for informational purposes only. Interest rate and payments are for illustrative purposes only. Individual results vary.

Best uses for a $10,000 personal loan

Personal loans can let you move forward on your goals, whatever they might be. Flexibility is one of the best features of personal loans, since you can use them to cover a range of expenses.

Is a $10,000 personal loan right for you? It could be if you need money to:

• Complete a mini home makeover or repair

• Consolidate debt

• Fund a major purchase

• Pay for important life events, like a big move

• Cover an unexpected financial emergency

• Pay medical bills for yourself or vet bills for a pet

There's not much you can't do with a personal loan, though lenders often do have some common sense restrictions. For example, some lenders don't allow you to use a personal loan to pay for college. But federal student loans are typically the lowest-cost and best option if you need to borrow for education anyway.

Another common restriction is using personal loans for business expenses (these are personal loans, after all). And you can probably understand why anything illegal is also off the table. Lender restrictions should be clear in the loan documents before you sign.

How to qualify for a $10,000 personal loan

Lenders decide who qualifies for a personal loan, but it all comes down to the strength of your financial profile. Lenders consider three main things for personal loans:

• Credit scores. Lenders look at credit scores and reports to check your history of on-time payments and how much debt you already have.

• Income. You'll need to show a lender that you have the ability to make the loan payments.

• Debt-to-income (DTI) ratio. This ratio tells lenders how much of your income goes to debt repayment. The lower this number is, the better. You can use a debt-to-income ratio calculator to do the math.

So what credit score do you need for a $10,000 personal loan? Personal loans are available across a range of credit profiles, including fair credit. Lenders weigh your income and existing debt alongside your credit, so a strong overall profile could offset a lower score.

Steps to apply for a $10,000 personal loan

It's easy to apply for a personal loan online. The sooner you start the process, the sooner those funds could be in your bank account so you could use them toward your goals.

Here's what the personal loan application process typically looks like.

• Check your credit. It's helpful to check your credit before you apply for a personal loan to get an idea of what lenders will see.

• Get a rate quote. Rate quotes tell you what you might pay for a personal loan, based on your credit score. You can compare rates from different lenders to see who has the best terms.

• Apply. Once you choose a lender, you can apply for a personal loan. You might need to tell the lender what you plan to use the loan for and your preferred repayment term.

• Upload documents. Your lender might ask for documentation to go with your loan application. The kinds of documents you may need include pay stubs, tax forms, and bank account statements.

The rate quote step could be the most important one of all, since each lender sets its own rates, fees, and terms. Get estimates from lenders who let you prequalify using a soft credit inquiry. Soft pulls don't impact your credit, so you can compare multiple lenders without hurting your credit scores. You can start with Achieve Personal Loans to get an estimated rate in minutes.

What to expect after a $10,000 personal loan is approved

You're approved for a $10k personal loan—congrats! Now you can complete the next steps.

You'll need to review the loan agreement and sign it. Once you do that, the lender should release the loan funds to you. Achieve Personal Loans could fund as soon as the next business day if you're approved.

How fast you get the money depends on a few practical things. Accurate application details, a promptly signed agreement, and electronic deposit to your bank account could all help the money arrive sooner.

As far as repayment goes, your lender will give you a schedule that shows:

• When monthly payments are due

• The amount you'll pay

• How much of your payment goes to interest and principal, which is what you borrowed

If your lender offers an interest rate discount for automatic payments, it might be worth it to enroll. That way, you know the payment gets there on time and you reduce your total loan costs. Either way, the most important thing is to pay on time each month, since paying late could trigger a fee or hurt your credit.

What if you want to pay a personal loan off early?

You could do that, as long as your loan agreement doesn't prohibit it. If your lender charges a prepayment penalty, that should be spelled out in the agreement. A prepayment penalty is a fee lenders use to recover some of the interest they miss out on when you pay off a loan early.

Making extra loan payments or paying it off early is a great way to cut your overall loan costs. Even small extra payments to your principal could save you money on interest and help you pay off your loan faster.

What's next

• Check your credit reports and scores to see what lenders will see if you apply for a loan.

• Get a rate quote for a $10,000 personal loan to estimate your interest rate and monthly payment.

• Review your budget to see where the monthly payment for a $10,000 personal loan might fit.

Find out if you're eligible through Achieve Personal Loans in just a few minutes.