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$4,000 Loan: How Do I Get One?

$4,000 Loan: How Do I Get One?
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated January 2, 2024
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Borrowers with bad credit scores as low as 550 may qualify for $4,000 personal loans. Banks, credit unions, and private lenders can offer $4k loans.You can submit an application with a financial institution requesting a $4,000 loan. Lenders may approve your application if you satisfy their underwriting standards.Lenders assess credit risks based on key factors, including a borrower’s credit history and debt-to-income ratio. You may get approved for a $4,000 loan if you can afford monthly payments on the loan. Pledging collateral or getting a cosigner can also increase your chances of getting a personal loan for $4,000.

Can You Get a $4,000 Loan With Bad Credit?

Subprime borrowers with bad credit scores as low as 550 may get approved for a $4,000 loan. Some of the major credit scoring models, including VantageScore® 4.0 and base FICO® Scores, range from 300 to 850.A credit score between 500 and 600 is generally considered subprime, while a credit score between 580 and 669 is generally considered fair. Some lenders may view borrowers with credit scores below 670 as high-risk, but consumers with bad credit may still qualify for $4k loans.Lenders may check your credit report when you apply for a $4,000 personal loan. Approval is never guaranteed, but you may have an easier time getting approved for a personal loan with a cosigner. A cosigner reduces risk to the lender and shares the financial responsibility of repaying the loan.A private lender may offer $4k loans to consumers with bad credit. Subprime borrowers may have to pay interest rates as high as 35.99% on a $4k loan. You may also have to pledge an asset as collateral to get approved for a personal loan with bad credit. You can pledge a car as collateral if you own a motor vehicle.

How Does a $4,000 Personal Loan Work?

The way a $4,000 personal loan works is you receive the loan principal if the lender approves your application and disburses the funds. You must repay the $4k principal over a set term and any interest charges and fees that may apply. A repayment term on a personal loan can range from 12 months to seven years. Some lenders may charge origination fees and daily simple interest on the $4k loan. These loans can be secured with collateral or unsecured without pledging any asset as collateral. Failing to pay and defaulting on a personal loan can have a major impact on your credit score. Lenders may also seize your collateral if you default on a secured lending product.Recommended: Can You Get a Personal Loan Without an SSN?

Top $4K Personal Loan Lenders

Here are some top lenders to consider if you’re looking for $4,000 online personal loans. (The following information on APR range, loan amounts, and maximum term lengths will be updated weekly, every Monday.)
LenderLoan amountsAPR rangeMaximum term
Avant$2,000 to $35,0009.95% to 35.99%60 months
Best Egg$2,000 to $50,0007.99% to 35.99%60 months
LendingClub$1,000 to $40,000 9.57% to 36% 60 months
OneMain Financial$1,500 to $20,00018% to 35.99%60 months
Prosper$2,000 to $40,0007.95% to 35.99%60 months
Universal Credit$1,000 to $50,00011.69% to 35.99%60 months
Upgrade$1,000 to $50,0008.49% to 35.99%60 months

Benefits of a $4,000 Personal Loan

Below we highlight some of the personal loan benefits of borrowing $4,000:


Borrowers may have great versatility on how to spend the loan money. Getting a personal loan of $4,000 gives you a lump sum of funding and wide discretion on how to use it.

Interest Rates

Personal loan interest rates may be lower than credit card interest rates. The average interest rate on a 24-month personal loan stood at 9.41% in the first quarter of 2022 compared with 16.17% for credit cards, according to Federal Reserve data.

No Collateral Required

Borrowers can get an unsecured personal loan of $4k with no collateral. This means your eligibility for the loan doesn’t require that you own a car, home, or other asset of value. It also means you can borrow $4,000 without the risk of losing your property in the event of default.

Bad Credit

Borrowers with bad credit may qualify for a $4k loan. Private lenders may offer bad credit loans with interest rates as high as 35.99%.

Fast Approval

Some lenders can approve personal loan applications in minutes and disburse the funds within hours or days. Getting quick personal loans can help you cover unexpected expenses. 

Is a $4,000 Personal Loan Right For Me?

A $4,000 personal loan may be right for you if you need the money and can afford to repay the debt. Borrowing closed-end credit and making regular payments on the loan can help you build your credit history.Borrowing $4,000 may also be right for you if you need to make a major purchase and don’t want to use your savings. A $4,000 personal loan may not be right for you if it doesn’t help you meet your goals. There are several advantages and disadvantages of a personal loan. Among the pros and cons is that personal loans can help you build credit but may feature high rates of interest.Certain personal loan tips can help you find the best financing terms for you, such as shopping around and comparing interest rates across lenders.There are at least 12 types of personal loans that consumers may consider when applying for a loan. Your personal circumstances can dictate whether a $4k loan is right for you.Recommended: Guide to Security Deposit Loans

How to Apply for a $4,000 Loan

Here are the steps you can take to apply for a $4,000 loan:

1. Compare Rates

Lenders who offer $4,000 personal loans may offer different rates of interest. Consumers can shop around and compare rates to see which lender offers the lowest rate of interest on $4k loans.Higher interest rates add to the cost of the loan, so borrowers can save money by borrowing money at the lowest rate of interest they can find.

2. Compare Terms

The terms of taking out a $4,000 personal loan can vary across lenders. Some lenders may charge origination fees for processing the loan application.Personal loans are installment loans that provide borrowers with a lump sum of money to be repaid over a set period. Some lenders may have repayment terms as low as 12 months and as high as seven years.

3. Submit Loan Application

After comparing rates and terms, you may submit an application with the lender of your choice requesting $4,000. The lender may conduct a hard pull inquiry and check your credit report to assess your creditworthiness.Getting approved may require that you have steady income, proof of identity, proof of residence, and the ability to make monthly payments on the loan. As mentioned earlier, some lenders can approve personal loan applications in minutes and disburse the funds within hours or days.

The Takeaway

A $4,000 personal loan can provide borrowers with the financing to cover unexpected expenses. Banks, credit unions, and online lenders may offer $4k loans and disburse the funds relatively quickly to borrowers with good credit or bad credit.If you need a $4k loan, Lantern by SoFi can help you compare the personal loan rate. Just provide basic information about yourself, and Lantern can guide you in the process to apply for a personal loan with the lender of your choice. Check your rate today and see if you prequalify.

Frequently Asked Questions

How can I get a $4,000 personal loan?
Can I get a $4,000 loan with bad credit?
Where can I get a $4,000 loan?
Photo credit: iStock/Yuri_Arcurs

About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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