How To Get a $20,000 Loan

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Twenty thousand dollars may seem like a lot of money to borrow. But emergency expenses can crop up that cost $20,000 or more. You might want to borrow money at a low interest rate for something like home renovations, a vacation or a wedding. That way, you can leave your investments where they are, earning higher interest. It’s called using “other people’s money” and it’s a smart finance move.

The short answer is: Yes, you can borrow $20,000. Getting approved with the best rate depends on your overall credit profile — credit score, income and your debt-to-income ratio (DTI).

What Are Your Options for a $20,000 Loan? 

Although $20,000 is a significant loan amount, if you have good credit and high income or collateral, you can qualify through a variety of lenders.

Personal Loan Through a Bank, Credit Union or Online Lender

Credit unions and online lenders may offer the lowest interest rates on personal loans for highly qualified individuals. If you can’t qualify based on your own income and credit profile, you may be able to get a loan with a cosigner.

These types of lenders may offer loans with no origination fees and no prepayment penalties. Some offer funds in your bank account as soon as the next day. It pays to shop around to find a lender that meets your needs, with terms that fit your budget.

Peer-to-peer Lending Platforms

Peer-to-peer lending platforms like UpStart connect qualified borrowers with investors who agree to fund a portion of your loan through a note. When you pay back the loan, with interest, the investors earn passive income.

UpStart allows borrowers to take out a personal loan of up to $50,000 for purposes like home improvement, debt consolidation, medical costs and even household expenses.

Secured Loans

Secured loans come in many forms. Keep in mind you’ll have to put up some collateral, which means there’s a bit of risk, especially if you’re borrowing a hefty amount like $20,000.

If you have assets that are worth a lot of money, a secured loan may be a smart choice. Some examples of collateral, according to Experian, include:

• Fine art
• Collectibles or antiques
• Insurance policies
• Investments like stocks or bonds
• Cash invested in a savings account or CD
• Real estate

Watch Out for ‘Title Loans’

Title loans allow people with subprime credit to borrow money against a vehicle they already own. These loans often have predatory characteristics, including short terms and high interest rates. When you take out a title loan and can’t make the payments, your car could be repossessed.

Credit Card Cash Advance

If you have a credit card with a high credit limit, you might be able to take out a cash advance for $20,000. But be aware of the ramifications.

Borrowing this much money on a credit card could severely increase your credit utilization ratio, which reduces your credit score.

Cash advances typically come with high fees, which add to the amount you have to pay back. Plus, if you borrow the money for more than one statement period, you might have to pay high interest charges.

Best Loan Option for You If…

How To Qualify for a $20,000 Loan 

Before you apply for a $20,000 loan, you’ll want to check your credit score. You can do this through:

• Experian
• TransUnion
• Equifax
• MyFico.com

Your credit card providers or bank may also give you free access to your credit score through their app, which is an easy way to keep tabs on your progress.

Free Credit Report

If your score is lower than you thought it might be, you can obtain free copies of your credit report once every 12 months at AnnualCreditReport.com. Review your credit report for errors or any problem spots you can work on, such as high balances.

Keep Your DTI Low

Keeping your DTI low can help the loan approval process, too. When it comes to DTI, the lower the better. It may get harder to get approved for a big loan like $20,000 if more than 36% of your income already goes to existing debt.

Have Steady Income

Even if you don’t have a steady, W-2 job, you should be able to show steady income through self-employment or side gigs. Be prepared to show proof of income, such as tax returns, bank statements, pay stubs or W-2 or 1099 forms.

Consider Having a Cosigner

If you don’t meet the income or credit requirements, a cosigner might be able to help you secure loan approval or even get better interest rates or a longer term. A lower rate or longer term can dramatically reduce your monthly payments on a $20,000 loan so it fits more easily into your budget.

Gather All of Your Financials

When you’re ready to apply, gather all the information you need, including:

• Your contact information
• Employment information
• Proof of income
• Social security or tax ID number
• Driver’s license or state ID
• Utility bills
• Information for the bank account where you want the funds deposited

How To Get $20,000 Fast 

If you’re in a situation where you need $20,000 fast, you may be stressed out. It’s OK to feel nervous about borrowing such a large sum of money. Here’s what you can do:

1. Gather all your documentation so you’ll be ready.
2. Look for loans with a fast prequalification or pre-approval process.
3. Compare the rates and terms, along with any fees or prepayment penalties, before you choose a lender.
4. Look for an online lender that offers direct deposit within 24 hours of loan approval, or even same-business-day deposits.

Even if you’re in a hurry, don’t short-change yourself on shopping around. Those lenders exist, but you’ll need to research to find them. Consider starting with this list of top personal loan lenders for a $20,000 loan.

What’s Your Reason for Borrowing?

Your reason for borrowing $20,000 could affect the loan you choose. Here are several common reasons people need to borrow money and the best loan provider for that purpose.

Emergency Expenses

If you need $20,000 fast because you’re facing medical expenses, home repairs, or emergency travel, you want a lender that delivers fast approvals and even quicker funding.

Best option: OneMain Financial — Loans up to $20,000 with funding as fast as one hour after closing

Debt Consolidation 

If you’re struggling with credit card debt, your credit score might be starting to suffer. Look for a lenient lender with no fees and no prepayment penalties. Borrowers with a credit score of just 600+ may qualify for a loan through Prosper.

Best option: Prosper — Borrow up to $50,000 and pay it back with no prepayment penalties, so you can get out of debt faster.

Home Improvements 

Borrowers looking to make home improvements want the lowest rates possible with no fees.

Best option: LightStream by Truist — Borrowers with excellent credit may qualify for an APR as low as 6.49%.

Moving or Relocation Costs

You have a lot on your mind when you’re moving. You want a loan that offers easy pre-approval, low rates, no fees or prepayment penalties, and fast money.  

Best option: UpStart — Borrow up to $50,000 to cover moving expenses

Special Occasions or Big Purchases 

SoFi® offers no-fee personal loans of up to $100,000 with low interest rates starting at 8.99%*, so you can fund a wedding or a dream vacation.

Best option: SoFi — No-fee personal loans and funded the day of approval

*Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000- $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.

Tips to Make the Loan Process Easier 

Whenever you apply for a personal loan, credit card or line-of-credit, the lender does a hard inquiry on your credit report, called a “hard credit pull.” This lowers your credit score temporarily. Shop around with different lenders by pre-qualifying. You can check rates with most personal loan providers without hurting your credit score.

Before you sign the loan contract, read the whole thing. Pay attention to:

• Prepayment penalties
• Loan origination fees
• Due dates
• What happens if you miss a payment or go into default

Finally, set up auto-pay when you apply for the loan to avoid late or missed payments. Some lenders, like LightStream, will even give you a discount on your loan rate if you commit to autopay during the application process.  

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